NCLT Quashes MIDC Cancellation of Jet Airways Plots in Mahape
The National Company Law Tribunal (NCLT) has quashed the Maharashtra Industrial Development Corporation’s (MIDC) cancellation of two plot allotments to Jet Airways (India) Ltd. in the TTC Industrial Area, Mahape, Navi Mumbai. In an order passed on the Wednesday preceding July 8, 2026, the tribunal ruled that MIDC’s termination notices violated the liquidation moratorium under the Insolvency and Bankruptcy Code (IBC) and ordered the corporation to execute 95-year lease deeds for the land.
The NCLT held that MIDC’s termination notices, dated September 12, 2025, concerning Plot No. EL-236 and Plot No. OS-12/1, were legally unenforceable. The tribunal directed MIDC to execute the lease deeds in favor of Jet Airways through its liquidator to prevent the depletion of the airline's assets.
According to the tribunal, the cancellation of the allotments directly affected the assets of the corporate debtor. Jet Airways had a vested right to use the plots for 95 years, having paid the full consideration upfront. The tribunal stated that the assets must be preserved by the liquidator to settle the claims of creditors.
The legal challenge was initiated by Satish Kumar Gupta, the liquidator for Jet Airways. Gupta argued that MIDC's decision to cancel the allotments and forfeit the lease premium would diminish the liquidation estate and negatively impact recoveries for creditors.
MIDC had originally allotted the two plots in 2017 and 2018 for aviation-related training facilities and tree plantation. Jet Airways paid the entire lease premium of over Rs 15.86 crore before its corporate insolvency resolution process commenced. Possession of the plots was handed over to the airline in September 2020, though the formal lease deeds were never signed.
MIDC argued that the plots were not part of the liquidation estate because the land title remained with the corporation. However, the NCLT rejected this defense, ruling that the 95-year leasehold rights acquired by Jet Airways constituted substantial assets that could not be excluded from the liquidation estate.
Additionally, the tribunal found that MIDC had violated the principles of natural justice by failing to issue prior notice before sending the cancellation letters. It also noted there was no evidence showing Jet Airways had authorized any third-party encroachment on the land.
