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

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

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

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

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

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

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