The Supreme Court of India has reversed the National Company Law Appellate Tribunal (NCLAT) decision that approved the transfer of Jet Airways’ ownership to the Jalan-Kalrock Consortium (JKC) and has instead ordered the liquidation of the airline’s assets. This decision stems from the consortium’s repeated failure to fulfill payment obligations outlined in the original resolution plan.
Source:- bbc news
JKC had committed to an initial payment of ₹350 crore by March 2022, but it has yet to deliver this sum, despite multiple extensions. Consequently, the court ruled in favor of the creditors’ appeal, which was led by the State Bank of India (SBI) and other lenders, who advocated for liquidation due to mounting financial concerns and a lack of progress in reviving the grounded airline.
Source:- new 18
The Jet Airways case highlights significant challenges in India’s aviation sector, where the path to insolvency and liquidation has impacted multiple carriers, including Kingfisher and Go First. The Supreme Court’s decision to proceed with liquidation underscores the limitations of the resolution process in cases of continued non-compliance by bidders, marking the end of Jet Airways’ protracted insolvency saga. The process of liquidation will now involve asset sales to settle dues to creditors, though it effectively terminates the revival hopes for the once-prominent airline
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