Jet Airways liquidation: What Supreme Court said - 7 Key takeaways

Jet Airways liquidation: On Thursday, the Supreme Court decided to overrule the mandate of the National Company Law Appellate Tribunal (NCLAT) ordering a liquidation of the grounded aircraft carrier Jet Airways. 

To overrule the NCLAT order, the apex court had to have a special power. Here are some of the key takeaways from the order: 

1. The Supreme Court exercises its extraordinary constitutional powers under Article 142 of the Constitution to order the liquidation of grounded air carrier Jet Airways' assets. 
2. The decision was taken by a bench led by Chief Justice DY Chandrachud and Justices JB Pardiwala and Manoj Misra. Notably, Chief Justice DY Chandrachud will retire on November 10. 
3. The ruling has also halted the transfer of Jet Airways’s ownership to Jalan Kalrock Consortium (JKC). 
4. Justice Pardiwalal called the litigation ‘an eyeopener’ teaching the courts ‘many lessons about IBC and functioning of NCLAT.’ 
5. This litigation is an eyeopener, has taught us many lessons about the IBC and the functioning of NCLAT," Justice Pardiwala
6. The Supreme Court’s decision is likely to benefit not only the creditors of the company but also the workers and other stakeholders. 
7. The bench criticised NCLAT for its decision saying, “We have no doubt that the NCLAT acted contrary to settled legal principles...NCLAT incorrectly interpreted our order.” 

Article 142 of the Constitution gives the Supreme Court power to make decisions to ensure complete justice for any case pending. The SC noted, “Fundamental concern is not only to do substantial justice but also to bring speedy disposal of dispute.” 

On March 12, the National Company Law Appellate Tribunal upheld the resolution plan that allowed the transfer of ownership of grounded Jet Airways to Jalan Kalrock Consortium. The Committee of Creditors consisting of the State Bank of India, Punjab National Bank (PNB), and JC Flowers Asset Reconstruction Private Limited challenged the NCLAT verdict.