New Delhi
The Supreme Court of India has overturned the National Company Law Appellate Tribunal (NCLAT) order allowing the ownership transfer of Jet Airways to the Jalan-Kalrock Consortium (JKC), after the resolution plan remained unimplemented for over five years. The court cited JKC’s failure to meet key obligations under the approved resolution plan, which included a payment of Rs 4,783 crore and an infusion of Rs 350 crore.
The court, invoking its powers under Article 142 of the Constitution, decided to liquidate Jet Airways. It also ordered the forfeiture of Rs 200 crore paid by JKC as part of the resolution agreement. The decision followed a challenge from lenders led by the State Bank of India (SBI), who had argued that the resolution plan was unworkable and urged for liquidation.
Despite JKC claiming ownership and its intent to revive the airline, the lenders accused the consortium of intentionally stalling the process and pushing Jet Airways closer to liquidation. The airline, which suspended operations in April 2019 due to financial difficulties, has faced a lengthy legal battle over the stalled resolution.
The NCLAT had earlier allowed the transfer of ownership to JKC in March 2024, but the Supreme Court criticized the tribunal for failing to fully examine the facts and for allowing the transfer without ensuring the complete payment. With the Supreme Court’s order, Jet Airways will now proceed to liquidation.
