The Supreme Court on Thursday set aside the National Company Law Appellate Tribunal (NCLAT) order that upheld the transfer of Jet Airways ownership to the Jalan-Kalrock Consortium (JKC) under an approved resolution plan.
The apex court directed the liquidation of Jet Airways after invoking ‘extraordinary powers’ under Article 142, citing the failure to implement the resolution plan.
A bench comprising Chief Justice of India (CJI)D Y Chandrachud, Justices J B Pardiwala and Justice Manoj Misra, allowed the appeal by the State Bank of India (SBI) and other creditors against the NCLAT decision.
It said ‘the liquidation of the air carrier was in the interest of creditors, workers and other stakeholders.’
The Supreme Court said that the Liquidation must be available to lenders as a last resort since the resolution plan is no longer capable of implementation.
The Bench noted that ‘5 years have elapsed since the approval of the resolution plan and it is left with no choice but to send Jet Airways into liquidation.’
Article 142 of the Constitution of India gives the Supreme Court the power to make orders and decrees to ensure complete justice in any matter or cause that is pending before it.
The Top Court held that ₹200 crore infused by JKC stands forfeited and directs lenders to invoke Performance Bank Guarantee of ₹150 crore.
