- Wednesday, March 12, 2025
The court set aside the National Company Law Appellate Tribunal decision that allowed the transfer of Jet Airways’ ownership to Jalan Kalrock Consortium
By: Shajil Kumar
THE SUPREME COURT on Thursday exercised its extraordinary constitutional powers and ordered the liquidation of grounded air carrier Jet Airways’ assets.
A bench of Chief Justice D Y Chandrachud and Justices J B Pardiwala and Manoj Misra set aside the National Company Law Appellate Tribunal (NCLAT) decision upholding the resolution plan of Jet Airways, which was grounded in 2019, and approved the transfer of its ownership to Jalan Kalrock Consortium (JKC).
Pronouncing the judgement for the bench, Justice Pardiwala allowed the plea of State Bank of India (SBI) and other creditors against the NCLAT decision that upheld the resolution plan of Jet Airways in favour of JKC.
It said the liquidation of the air carrier was in the interest of creditors, workers and other stakeholders.
The bench rapped NCLAT for its decision.
The top court used its powers under Article 142 of the Constitution which gives it the power to make orders and decrees to ensure complete justice in any matter or cause pending before it.
The NCLAT on March 12 upheld the resolution plan of the grounded air carrier and approved the transfer of its ownership to JKC.
The SBI, Punjab National Bank (PNB) and JC Flowers Asset Reconstruction Private Limited have challenged the NCLAT verdict.
Jet Airways was founded by Naresh Goyal in 1992 and it soon became a leading airline in the country.
However, it ran into financial woes in 2019, and SBI initiated insolvency proceedings before NCLT, Mumbai.
In 2021, JKC emerged as the successful resolution applicant to re-commence the operations of the airline. (PTI)
