NCLAT Issues Notice To Boeing On Jet Airways' Appeal Seeking $92 Million Refund For Undelivered Aircraft

The National Company Law Appellate Tribunal (NCLAT), Delhi, on Tuesday issued notice to US-based aircraft manufacturer Boeing on an appeal filed by Jet Airways' liquidator challenging the dismissal of his application seeking a refund of $92.12 million paid towards the purchase of aircraft that were never delivered.

The appeal has been filed by Satish Kumar Gupta, the liquidator of Jet Airways (India) Ltd, against the September 11, 2026, order of the Mumbai bench of the National Company Law Tribunal (NCLT). The NCLT had dismissed his application seeking a refund of the advance and pre-delivery payments made to Boeing under aircraft purchase agreements.

The matter was heard by a bench comprising Judicial Member Justice Mohd Faiz Alam Khan and Technical Member Naresh Salecha.

In 2013, Jet Airways entered into two purchase agreements with Boeing for the procurement of Boeing 737-8 and Boeing 787-9 aircraft. Under these agreements, the airline paid Boeing $92,129,387 as advance and pre-delivery payments, which the company acknowledged receiving.

The NCLT order records that Jet Airways was unable to pay certain amounts due under the agreements because of financial difficulties. Following the delay in payments, Boeing issued a notice on May 22, 2019, purporting to suspend performance of its obligations under the agreements. Jet Airways was subsequently admitted into the Corporate Insolvency Resolution Process (CIRP) in June 2019.

In December 2020, Boeing issued notices purporting to terminate the purchase agreements, citing Jet Airways' alleged material breach. The NCLT noted that Boeing had not supplied any aircraft under the agreements.

During the CIRP, Boeing submitted a claim of approximately $275.33 million. The resolution professional admitted ₹721.19 crore, which increased to approximately ₹873.79 crore during liquidation due to currency fluctuations.

The liquidator subsequently sought a refund of the $92.12 million advance payments, contending that the amount formed part of Jet Airways' liquidation estate. Boeing opposed the application, maintaining that the advance payments had already been adjusted against its outstanding claim and that no amount was payable to the airline.

The NCLT observed that the dispute revolved around the purchase agreements, which neither party had placed on record. It held that determining whether Boeing was justified in suspending or terminating the agreements, forfeiting or adjusting the advance payments, or filing its claim during the insolvency proceedings would require examination of the contractual terms and evidence through a full-fledged trial.

The tribunal further held that the rival claims and the question of set-off could not be adjudicated in its summary jurisdiction under Section 60(5) of the Insolvency and Bankruptcy Code. It observed that the dispute was independent of the insolvency process and would have to be determined by a competent court.

The NCLT also declined to conclusively determine which court had jurisdiction to decide the contractual dispute, observing that the issue would have to be examined in light of the terms of the agreements and the governing law.

The NCLT accordingly dismissed the liquidator's application and disposed of Boeing's application challenging its maintainability.

The matter is listed for further hearing before the NCLAT in December.