The Supreme Court on Monday posted for October 12 an appeal filed by State Bank of India-led creditors to initiate liquidation proceedings against Jet Airways and reject the corporate insolvency resolution process approved earlier by the NCLT permitting the Jalan-Kalrock Consortium (JKC) to take over the airline by infusing Rs 350 crore.

A bench headed by Chief Justice of India D.Y. Chandrachud agreed to list the matter for early hearing after briefly hearing senior advocate Harish Salve and additional solicitor general R. Venkataraman for the SBI-led consortium of lenders and former attorney general Mukul Rohatgi for JKC.

Besides seeking liquidation proceedings of Jet Airways, the SBI-led lenders have challenged the directions passed on August 28 by the National Company Law Appellate Tribunal (NCLAT), which had allowed JKC to encash a Rs 150-crore performance bank guarantee that it had submitted while bidding for the bankrupt airline.

SBI has argued before the bench which included Justice J. B. Pardiwala and Justice Manon Misra that the lenders had already questioned the source of funds generated by JKC as the foreign arm of the consortium Florian Fritsch was facing prosecution in Europe for alleged money laundering.

Rohatgi sought to dispute the claims by SBI and pleaded that JKC had promptly discharged the instalments of payments to the tune of Rs 250 crore to the lenders.

SBI had earlier raised issues relating to the purported investigations for alleged fraud and money laundering against Florian Fritsch said to be underway at Lichtenstein.