Authority: National Company Law Appellate Tribunal (NCLAT) Principal Bench, New Delhi
Order Date: July 2, 2026
Case Overview
This is an appeal (Company Appeal (AT) (Insolvency) No. 1140 of 2026) filed by Ace Aviation XIV Ltd. and another appellant against an order from the Adjudicating Authority (NCLT). The order in question is from application I.A. No.1707 of 2026, which permitted the demand for security in the form of a cash margin from the appellant. The dispute centers around a potential Goods and Services Tax (GST) liability related to aircraft purchased by Ace Aviation in an auction sale of the corporate debtor, Jet Airways (India) Ltd., which is undergoing liquidation. The appellant, Ace Aviation, contends that GST is not applicable to its transaction as it was an export transaction of the aircraft. The respondent is Satish Kumar Gupta, the Liquidator of Jet Airways (India) Ltd.
The Liquidator's counsel stated that show cause notices for GST liability had been received concerning other aircraft from previous sales, justifying the need for security. A specific show cause notice was also referenced concerning an aircraft in Delhi.
The NCLAT bench, comprising Justice Ashok Bhushan (Chairperson) and Barun Mitra (Member (Technical)), heard arguments from both parties. Counsel for the appellant was Mr. Anand Singh Sengar and Mr. Rohan Shah, Sr. Advocate. Counsel for the respondent Liquidator was Mr. Sunil Fernandes, Sr. Advocate.
Final Outcome
The NCLAT admitted the appeal for consideration. It directed the respondent (Liquidator) to file a reply within one week. The appellant is then allowed one week to file a rejoinder. The appeal is scheduled to be listed for disposal after two weeks, on July 30, 2026. As an interim measure, the liquidator was permitted to apply for an extension as directed by the Adjudicating Authority in its earlier orders. No final ruling on the merits of the GST dispute was made in this order.
Topics: Insolvency Litigation, Tax Dispute, Aviation Sector