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Exercising its extraordinary powers under Article 142 of the Indian Constitution, the Supreme Court on Thursday ordered the liquidation of the grounded air carrier Jet Airways after finding out that the resolution plan was not implemented.
The apex court also set aside the National Company Law Appellate Tribunal (NCLAT) order that approved the transfer of ownership to Jalan Kalrock Consortium (JKC). The decision was taken by a bench of Chief Justice of India (CJI) DY Chandrachud, Justices JB Pardiwala and Manoj Misra. The liquidation was ordered in view of the "peculiar and alarming" circumstance that the resolution plan has not been implemented for five years, the top court said. "We exercise plenary powers and direct that corporate debtor is taken into liquidation. Appeals succeed. NCLAT order set aside. In peculiar and alarming circumstance since five years passed since NCLAT cleared resolution plan, thus under Article 142, we direct corporate debtor is taken into liquidation and Rs 200 crore stands forfeited. Lenders are permitted to encash the performance bank guarantee. NLCT Mumbai to appoint liquidator forthwith," said the apex court in its order, allowing appeals filed by airlines' lenders led by State Bank of India (SBI) against the NCLAT order. NCLAT had allowed the cash-strapped Jet Airways' ownership transfer to the Successful Resolution Applicant (SRA) without complete payment following the resolution plan. The case is related to the ownership of Jet Airways between JKC and a number of the airline's lenders led by the State Bank of India. The lenders had moved to the Supreme Court challenging the March 12 NCLAT order upholding the transfer of ownership of the airline to JKC, a consortium led by UAE-based entrepreneur Murari Lal Jalan and UK-based Kalrock Capital. Jet Airways was grounded in 2019 due to severe financial troubles. (ANI)
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