Jet Airways Liquidator Moves NCLAT Seeking ₹872 Crore Refund From Boeing for Undelivered Aircraft

The liquidator of grounded airline Jet Airways has approached the National Company Law Appellate Tribunal (NCLAT), seeking a refund of approximately ₹872 crore from US aircraft manufacturer Boeing. The claim relates to advance and pre-delivery payments made by Jet Airways under aircraft purchase agreements signed in 2013. The airline had ordered Boeing 737-8 and 787-9 aircraft, but neither model was delivered under the agreements.

The appeal challenges a September 11, 2026, order by the Mumbai bench of the National Company Law Tribunal (NCLT), which dismissed the liquidator’s application for recovery of the money. On November 3, NCLAT issued notice to Boeing and gave the company two weeks to submit its response. The liquidator will then have one week to file a rejoinder, with the next hearing expected in the first week of December 2026.

Jet Airways Seeks $92.13 Million From Boeing

The liquidator, Satish Kumar Gupta, is seeking recovery of $92.13 million, equivalent to approximately ₹872 crore at the exchange rate cited in recent reporting.

The payments were made as advances and pre-delivery instalments under two aircraft purchase agreements signed in 2013.

The aircraft orders covered:

• Boeing 737-8 aircraft, part of the 737 MAX family.
• Boeing 787-9 Dreamliner aircraft, a wide-body long-haul aircraft.

Jet Airways made the advance payments but subsequently experienced severe financial difficulties and failed to meet certain further payment obligations.

The liquidator argues that the money paid to Boeing should be returned because the contracted aircraft were never delivered. According to the liquidator, the advance payments form part of Jet Airways’ liquidation estate and should therefore be available for distribution through the liquidation process.

Boeing, however, disputes the refund claim.

Why Boeing and Jet Airways Are Disputing the Money

The disagreement centres on whether Boeing was entitled to retain or adjust the advance payments against amounts owed by Jet Airways.

Boeing maintains that the advances had already been credited against its larger outstanding claim against the airline. It argues that the payments cannot be recovered separately after being accounted for when its creditor claim was calculated.

During Jet Airways’ insolvency proceedings, Boeing submitted a claim of approximately $275.33 million for outstanding amounts under the aircraft purchase agreements, along with other dues relating to software and services.

After adjustments, the resolution professional admitted Boeing’s claim at ₹721.19 crore. This amount subsequently increased to approximately ₹873.79 crore during liquidation, partly because of currency fluctuations.

The liquidator is challenging the treatment of the advance payments and seeking their recovery. Boeing argues that the advances have already been adjusted against its admitted claim.

The central question is therefore whether the advances should be refunded to Jet Airways or treated as amounts already credited against Boeing’s outstanding dues.

How the Dispute Started

The dispute dates back to 2013, when Jet Airways entered into agreements with Boeing to purchase the aircraft.

The airline later encountered serious financial problems, which affected its ability to meet contractual payment obligations.

In May 2019, Boeing issued a notice purporting to suspend its obligations under the agreements. Jet Airways entered the corporate insolvency resolution process in June 2019 after its financial difficulties became unsustainable.

Boeing subsequently issued termination notices in December 2020, citing alleged contractual breaches by the airline.

No aircraft were delivered under the two agreements.

During the insolvency process, Boeing filed its creditor claim, while the liquidator later sought the return of the advance payments. The disagreement eventually reached the NCLT.

Why the NCLT Rejected the Liquidator’s Refund Plea

On September 11, 2026, the Mumbai bench of the NCLT dismissed the liquidator’s application seeking recovery of the advance payments.

The tribunal observed that the dispute involved the interpretation of the aircraft purchase agreements and required detailed examination of contractual terms and evidence.

The NCLT noted that neither party had produced the underlying purchase agreements before it, citing confidentiality concerns. Without examining those contracts, the tribunal said it could not determine whether Boeing was justified in suspending and terminating the agreements, retaining the advances or adjusting them against its creditor claim.

It also questioned whether the dispute could be decided under Section 60(5) of the Insolvency and Bankruptcy Code (IBC), which gives insolvency tribunals jurisdiction over certain matters arising from insolvency proceedings.

The tribunal concluded that the contractual dispute required adjudication by a competent court and a full-fledged examination of the evidence.

Importantly, the NCLT did not conclusively rule that Boeing was entitled to retain the money. It dismissed the liquidator’s application on jurisdictional and procedural grounds, leaving the underlying contractual questions unresolved.

NCLAT Issues Notice to Boeing

The liquidator has now challenged the NCLT decision before NCLAT.

During the November 3 hearing, the appellate tribunal considered the appeal and issued notice to Boeing. The aircraft manufacturer accepted the notice and was given two weeks to file its response.

The liquidator will have another week to submit a rejoinder after receiving Boeing’s reply. The matter is expected to return for hearing in the first week of December.

The liquidator has sought recovery of the advance payments but did not press for interim relief during the initial hearing.

The issuance of notice means the appellate tribunal will consider the challenge. It does not mean that the refund claim has been accepted or that Boeing has been directed to pay ₹872 crore.

Jet Airways’ Long Road to Liquidation

Jet Airways was once among India’s largest private airlines. However, mounting debt, financial losses and a severe cash crunch forced the airline to suspend operations in April 2019.

The airline entered insolvency proceedings in June 2019 following a petition by a consortium of lenders led by State Bank of India.

In 2021, the NCLT approved a resolution plan submitted by the Jalan-Kalrock Consortium, raising expectations that the airline could resume operations. However, the revival plan faced prolonged disputes and implementation challenges.

On November 7, 2024, the Supreme Court ordered Jet Airways’ liquidation after the approved resolution plan could not be implemented. The NCLT subsequently commenced liquidation proceedings on November 26, 2024.

The airline’s liquidation involves resolving claims from lenders, employees, suppliers and other creditors. The Boeing dispute is one of the outstanding matters that could affect the assets available for distribution.

The Bigger Picture

The Jet Airways-Boeing dispute highlights the complexity of recovering advance payments when large commercial contracts collapse during corporate insolvency.

Aircraft purchase agreements often involve substantial upfront payments, long delivery schedules and detailed provisions covering cancellations, payment defaults and termination. When a buyer enters insolvency, disagreements can emerge over whether advance payments should be returned, forfeited or adjusted against outstanding liabilities.

The case also illustrates the limits of insolvency tribunals when disputes depend on contractual interpretation and evidence beyond the immediate insolvency process. The outcome could influence how the airline’s liquidator pursues the remaining assets and liabilities.

Looking Ahead

The next important development will be Boeing’s response to the liquidator’s appeal and the subsequent NCLAT hearing expected in December 2026. The appellate tribunal will need to consider the challenge to the NCLT’s decision before determining what further legal steps are appropriate.

For now, the ₹872 crore remains a disputed claim rather than a confirmed recovery for Jet Airways. The final outcome will depend on the contractual arrangements, the treatment of the advances against Boeing’s creditor claim and the jurisdiction of the appropriate forum to decide the dispute.