Supreme Court orders liquidation of grounded airline Jet Airways
These funds played a crucial role in revival plan of Jet Airways, however JKC's inability raised questions about the feasibility of the revival process.
PTC News Desk: The Supreme Court has ordered liquidation of Jet Airways while setting aside the NCLAT order which approved Jet Airways' ownership transfer. The Supreme Court invoked its extraordinary powers under Article 142 of the Constitution to order the liquidation of Jet Airways in view of the "peculiar and alarming" circumstance that the resolution plan has not been implemented for five years.
NCLAT had earlier ordered transfer of ownership to Jet's winning bidder Jalan Kalrock Consortium who fell short of meeting significant parameters complying with the resolution plan. The court also highlighted financial irregularities including injecting Rs 350 crore into the airline and failure of payment to employees.
These funds played a crucial role in revival plan of Jet Airways, however JKC's inability raised questions about the feasibility of the revival process. The investment of Rs 200 crore by JKC would be forfeited lenders led by the State Bank of India (SBI) are authorised to invoke the Rs 150 crore PBG to recover some of their dues.
The court has also ordered NCLT Mumbai Bench to appoint liquidator with immediate effect. Three judge bench headed by CJI DY Chandrachud and consisting Justices JB Pardiwala and Manoj Misra reserved the judgment order earlier on October 16.