The Supreme Court of India has ordered the liquidation of Jet Airways, invoking its extraordinary powers under Article 142 to override a National Company Law Appellate Tribunal (NCLAT) ruling that had allowed the transfer of ownership to the Jalan-Kalrock Consortium (JKC) without full payment to creditors. The Court's decision, issued on Thursday, was driven by "peculiar and alarming" circumstances related to the improper execution of the consortium's resolution plan. It noted that the plan was no longer feasible and that liquidation was the only viable option to ensure justice for creditors, workers, and other stakeholders.

The Court criticized the NCLAT for approving the resolution despite JKC's failure to make an initial payment of ?350 crore, a condition for ownership transfer. The consortium was required to pay a total of ?4,783 crore, but the partial payment of ?200 crore made by JKC was deemed insufficient. As a result, the Court directed that this ?200 crore be forfeited and ordered the NCLAT's Mumbai bench to appoint a liquidator.

Jet Airways, once a major player in India's aviation industry, was grounded in April 2019 due to financial troubles. In 2021, the Jalan-Kalrock Consortium, led by Murari Jalan and Florian Fritsch, won the bid to take over the airline. However, delays in meeting financial commitments and the lack of a clear resolution plan prompted creditors, including major banks like the State Bank of India and Punjab National Bank, to challenge the progress.

With the Court’s ruling, Jet Airways will now enter liquidation, marking a significant chapter in the airline’s long-standing financial struggles. The decision underscores the need for accountability in corporate restructuring processes and ensures that creditors are prioritized.

The Supreme Court of India has ordered the liquidation of Jet Airways, invoking its extraordinary powers under Article 142 to override a National Company Law Appellate Tribunal (NCLAT) ruling that had allowed the transfer of ownership to the Jalan-Kalrock Consortium (JKC) without full payment to creditors. The Court's decision, issued on Thursday, was driven by "peculiar and alarming" circumstances related to the improper execution of the consortium's resolution plan. It noted that the plan was no longer feasible and that liquidation was the only viable option to ensure justice for creditors, workers, and other stakeholders.

The Court criticized the NCLAT for approving the resolution despite JKC's failure to make an initial payment of ?350 crore, a condition for ownership transfer. The consortium was required to pay a total of ?4,783 crore, but the partial payment of ?200 crore made by JKC was deemed insufficient. As a result, the Court directed that this ?200 crore be forfeited and ordered the NCLAT's Mumbai bench to appoint a liquidator.

Jet Airways, once a major player in India's aviation industry, was grounded in April 2019 due to financial troubles. In 2021, the Jalan-Kalrock Consortium, led by Murari Jalan and Florian Fritsch, won the bid to take over the airline. However, delays in meeting financial commitments and the lack of a clear resolution plan prompted creditors, including major banks like the State Bank of India and Punjab National Bank, to challenge the progress.

With the Court’s ruling, Jet Airways will now enter liquidation, marking a significant chapter in the airline’s long-standing financial struggles. The decision underscores the need for accountability in corporate restructuring processes and ensures that creditors are prioritized.