The Supreme Court on Thursday ordered the liquidation of cash-strapped Jet Airways, stating the resolution plan -- approved five years ago -- was no longer capable of implementation.
A Bench led by CJI, D.Y. Chandrachud allowed the plea from lenders against the passing of ownership of the grounded airline to Jalan Kalrock Consortium (JKC).
Noting that the application was being filed for the third time, The Bench, also comprising Justices JB Pardiwala and Manoj, invoked its extraordinary powers under Article 142 of the Constitution "for doing complete justice" between the parties and ordered appointment of a liquidator forthwith.
It also ordered forfeiture of Rs 200 crore infused by JKC and directed lenders to invoke Rs 150 crore Performance Bank Guarantee (PBG).
In the plea filed before the apex court, the Committee of Creditors led by State Bank of India stated that the revival plan proposed was not in the best interest of the lenders and challenged the National Company Law Appellate Tribunal's order which had allowed the resolution plan.
The Supreme Court, in January this year, ordered the successful resolution professional bidder for cash-strapped JKC/Jet Airways to deposit Rs 150 crore in an Escrow account to be jointly held by State Bank of India and JKC.
It had warned that consequences as a result of the law would prevail if the JKC failed to provide the bank guarantee.
It had further sought the NCLAT to pronounce its order by the end of March 2024 on the plea of the lenders against the owner ship of the grounded Airways by JKC.
The consortium had taken up an infusion of Rs 350 crore equity under the court-approved resolution plan to take control of Jet Airways.
A three-member Bench of the NCLAT had agreed to adjustment of Rs 150 crore from the Performance Bank Guarantee (PBG) towards the payment of Rs 350 crore.
The appellate tribunal also accepted the undertaking given by the consortium committing to pay Rs 100 crore by August 31 last year and another Rs 100 crore by September 30, 2023.
Jet Airways, once the leading airline in India, is one of the largest and most popular airlines, which filed for bankruptcy under the Insolvency and Bankruptcy Code (IBC) in June last year under extreme financial distress.
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