Supreme Court Orders Liquidation of Jet Airways' Assets, Overturns NCLAT Decision

The Supreme Court has ordered Jet Airways' assets to be liquidated. This decision overturned the NCLAT's ruling.

The NCLAT had approved a plan to transfer ownership to the Jalan-Kalrock Consortium (JKC). However, JKC did not pay the full amount owed to creditors.

Using Article 142, the Supreme Court found that the resolution plan was not properly followed. It decided that liquidation was the best option for creditors, workers, and other stakeholders.

This decision came after challenges from creditors like the State Bank of India (SBI) and Punjab National Bank (PNB), who argued that JKC had failed to pay ₹350 crore as required. JKC owed a total of ₹4,783 crore.

The court ruled that the ₹200 crore already paid by JKC would be forfeited. It also instructed the NCLAT to appoint a liquidator for Jet Airways.

Jet Airways was grounded in 2019. In 2021, the Jalan-Kalrock Consortium won the bid to take over the airline. However, there have been delays because of legal and financial problems.

In May, Jet Airways announced that it would delay its financial results. The monitoring committee will meet soon to address the issue.