Dentons Link Legal Represents Ace Aviation In Jet Airways Boeing 777-300ER Aircraft Auction Proceedings

Dentons Link Legal successfully represented Ace Aviation XIV Limited and Ace Aviation XV Limited, in proceedings arising from the auction of two Boeing 777-300ER aircraft owned by Jet Airways (India) Limited as part of its liquidation process.

Ace Aviation emerged as the highest bidder in the competitive auction process with a bid value of approximately INR 568 crore. Challenges to the auction process before the NCLT, Mumbai, including calls for a fresh auction, were dismissed, with the decisions subsequently upheld by the NCLAT and the Hon’ble Supreme Court.

Jet Airways (India) Ltd, currently under liquidation, successfully sold two wide-body Boeing 777-300ER aircraft for a combined ₹568.17 crore through an e-auction process, significantly above the reserve price.

The first aircraft, a Boeing 777-300ER (MSN 35157, registered as VT-JET), had a reserve price of Rs 1,71,80,50,000. It attracted a highest bid of Rs 3,09,24,90,000, with Ace Aviation XIV Limited emerging as the successful bidder. The second aircraft, also a Boeing 777-300ER (MSN 35160, registered as VT-JEU), carried a reserve price of Rs 1,84,95,00,000 and received a highest bid of Rs 2,58,93,00,000.

In total, the two aircraft had a combined reserve price of Rs 3,56,75,50,000, while the cumulative highest bids reached Rs 5,68,17,90,000.

The sale was conducted by the airline’s liquidator, Satish Kumar Gupta, following approvals and consultations with the Stakeholders’ Consultation Committee. The aircraft, both based in Delhi, were put up for sale on the insolvency regulator’s e-auction platform BAANKNET in accordance with the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016. Jet Airways ceased operations in April 2019 and entered liquidation after efforts to revive the airline failed. Proceeds from asset sales are expected to be distributed in line with the waterfall mechanism under the Insolvency and Bankruptcy Code.

The team that represented Ace Aviation across all forums, comprised of Petrushka Deas Dasgupta (Partner), Krishna Baruah (Principal Associate) and Kewal Buddhdev (Associate) from the Bombay Team and Mridul Yadav (Principal Associate) from the Delhi Team.