November 7, 2024 – The Supreme Court (SC) today ordered the liquidation of Jet Airways invoking “extraordinary” powers under Article 142 and thus ruling out transfer of the assets to Jalan-Kalrock Consortium.

As per Article 142, the Court may issue directions in every on-going case for "complete justice". In this case, the SC stated that it had "no choice but to send Jet Airways into liquidation" due to the "peculiar and alarming" circumstances of the case, which included incorrect execution of the resolution plan. It specified that the resolution plan has not been implemented for five years.

The country’s top court also set aside the order given by National Company Law Appellate Tribunal (NCLAT) which permitted the transfer of the cash-strapped Jet Airways' ownership to the Successful Resolution Applicant (SRA) without complete payment in accordance with the resolution plan. The Rs 200 crores that the SRA had paid now stands forfeited.

The transfer of Jet's ownership rights was ratified by NCLAT to a group of UK's Kalrock Capital and United Arab Emirates-based entrepreneur Murari Lal Jalan.

Additionally, the bench comprising Chief Justice of India DY Chandrachud and Justices JB Pardiwala and Manoj Misra ordered the NCLT Mumbai Bench to designate a liquidator immediately.

The NCLAT order had been challenged by SBI-led lenders of the cash-strapped airline.

"Liquidation must be available to lenders as a last resort... since resolution plan is no longer capable of implementation," the bench said, allowing a plea by creditors, including the State Bank of India and the Punjab National Bank.

In addition to disapproving the NCLAT for upholding the resolution in spite of non-payment to creditors, the court said liquidation would be the best under the circumstances in the interests of creditors, employees and other stakeholders.

Jet Airways, the airline owned by Naresh Goyal, was once India's major airline. It has been grounded since 2019.