The Jet Airways revival saga finally came to an end on Wednesday with the Supreme Court ordering the liquidation of the company.
A three member bench of the apex court invoked its powers under Article 142 of the constitution and directed the liquidation of the grounded airline.
“Almost five years have elapsed since the resolution plan was approved and as there is no progress worth the name we are left with no option but to invoke our jurisdiction under Article 142 of constitution and direct that corporate debtor (Jet Airways) be taken into liquidation,” the bench of Chief Justice Dhananjaya Chandrachud, Justice J B Paridwala and Justice Manoj Misra said in their judgment.
The court passed its judgment while hearing lenders’ appeal against the National Company Law Tribunal’s March order allowing the transfer of ownership of Jet Airways to Jalan Kalrock consortium.
Jet Airways shut operations in April 2019 owing to a cash crunch. The Jalan Kalrock consortium emerged as a successful bidder to revive the airline and its resolution plan was approved by National Company Law Tribunal in June 2021. The grounded airline’s air operator certificate was renewed in 2022 but the revival process faltered amid tussles between lenders and consortium.
While setting aside the NCLAT order, the apex court also directed the National Company Law Tribunal to take appropriate steps for appointment of a liquidator and commence liquidation.
The court also ordered foreifiture of ₹200 crore infused by JKC in the airline and directed lenders to encash Rs 150 crore bank guarantee submitted by it.