Jet Airways to be liquidated? Supreme Court rules on NCLAT order - Details

Jet Airways resolution plan: On Thursday, Supreme Court has decided to sideline mandate of National Company Law Appellate Tribunal (NCLAT) that allowed transfer of grounded air traveller Jet Airways’ ownership to Jalan-Kalrock Consortium (JKC) under an approved resolution plan. 

SC’s decision came in view of "peculiar and alarming" circumstance that resolution plan has not been implemented for five years. 

According to report from ANI, in response to appeal by Committee of Creditors led by State Bank of India ( SBI ) and or creditors that revival plans were not in best interest of lenders. committee also questioned NCLT order ordering resolution plan. 

Supreme Court found that consortium created for revival of bankrupt airlines failed to raise even first instalment of money within assigned time interval mandated by resolution plan. 

In verdict, bank guarantee of R 150 crore submitted by JKC was forfeited along with amount of Rs 200 crores paid by SRA. 

apex court has also directed NCLT Mumbai bench to appoint a liquidator to proceed with liquidation process of cash-strapped airline and pay off its creditors.