On Thursday, November 7, the Supreme Court ordered Jet Airways to be liquidated after determining that the Jalan-Kalrock Consortium, the winning bidder for the airline, did not adhere to the revival plan. The decision concludes years of legal disputes regarding the airline’s future and heightens worries about India’s insolvency system. The Supreme Court has ordered the liquidation of Jet Airways. The Supreme Court determined that the Jalan-Kalrock Consortium (JKC) did not satisfy important requirements in the resolution plan. JKC did not provide the pledged ₹350 crore in the initial payment, settle employee payments, or pay important airport fees, leading the court to state that liquidation was the only option for creditors to recover some of their funds. This ruling overrides NCLAT’s decision from March 2024. The Supreme Court reversed the March 2024 decision made by the National Company Law Appellate Tribunal (NCLAT), which had supported JKC’s ownership of the airline. The Court reprimanded NCLAT for inadequately taking into account the facts and JKC’s failure to comply with the resolution plan. Additionally, NCLAT has issued a notice to Adani Power regarding a petition challenging the purchase of Lanco Power. Supreme Court Uses Article 142 for Liquidation. Referencing its authority from Article 142 of the Constitution, the Supreme Court decided on liquidation, mentioning that JKC’s inability to meet its responsibilities made it impossible for the airline to be revived. Lenders are leading the push for liquidation.
