India’s Punjab National Bank (PNBK.NS) on Thursday urged a tribunal to quash the rescue plan for defunct debt-laden Jet Airways (JET.NS), alleging irregularities in it, a transfer that dangers delaying any return of the airline grounded two years in the past.

A consortium of London-based Kalrock Capital and a UAE-based businessman final 12 months agreed to pump in 10 billion rupees as working capital and provides funds to collectors of Jet, which was hit exhausting resulting from piling up debt in 2019.

PNB, the court-appointed official answerable for Jet’s revival, Ashish Chhawchharia, and a spokesperson for the consortium investing funds into the collapsed airline didn’t reply to requests for remark.

The nation’s second-largest state lender PNB argues that Jet’s court-appointed rescue official had initially accepted its declare of almost 10 billion rupees ($137 million) from the airline’s backers, however then decreased it by 2 billion rupees, in keeping with its tribunal submitting seen by Reuters.

At the National Company Law Appellate Tribunal, PNB argued {that a} discount of the quantity was arbitrary and unlawful.

On Thursday, the tribunal agreed to listen to PNB’s case, Additional Solicitor General of India, Aman Lekhi, who argued for the financial institution, informed Reuters. The case will likely be heard on Sept. 21.

“How PNB has been treated is wrong – both substantively and procedurally,” Lekhi stated.

Once India’s largest personal service, Jet Airways was crippled by losses and a pile of debt because it tried to compete with low-cost rivals and was pressured to floor all flights in April 2019, placing in danger its lessors, suppliers, lenders and 1000’s of workers.

Jet’s decision plan was accepted final 12 months by its monetary collectors. PNB has maintained that because the decision plan mandated solely minimal fee of liquidation worth for dissenting collectors it was left with no selection however to approve the plan.

(Reuters)