India

SC Orders Liquidation Of Jet Airways’ Assets

By
OB Bureau

New Delhi: Setting aside an order National Company Law Appellate Tribunal (NCLAT) the Supreme Court has ordered the liquidation of Jet Airways’ assets. The three-member bench rapped the NCLAT for its order and observed the appellate body acted against settled legal principles.

Pronouncing the verdict, a three-member bench comprising Chief Justice D.Y. Chandrachud and Justices J.B. Pardiwala and Manoj Misra set aside NCLAT’s verdict approving the resolution plan of the grounded airline and transfer of ownership to Jalan Kalrock Consortium (JKC).

Pronouncing the judgement, Justice Pardiwala allowed the plea of SBI and other creditors against the NCLAT decision that upheld the resolution plan of Jet Airways in favour of JKC, PTI reported. The bench observed it is ordering the liquidation of the airline in the interest of creditors, workers and other stakeholders.

Ordering the liquidation of Jet Airways as per the Insolvency and Bankruptcy Code, the bench directed the National Company Law Tribunal in Mumbai (NCLT) to appoint a liquidator immediately to carry out the liquidation, Bar and Bench reported.

Notably, Jet Airways was grounded in 2019 owing to financial issues. The airline’s creditors led by the State Bank of India moved the National Company Law Tribunal and initiated insolvency proceedings. In 2021, Jalan Kalrock Consortium–a consortium led by UAE-based entrepreneur Murari Lal Jalan and UK-based Kalrock Capital–emerged as the successful bidder for the airline’s revival.

However, following disputes over the fulfilment of the conditions precedent, the creditors refused to transfer ownership to JKC. In January 2023, NCLT dismissed creditors’ objections and ordered a transfer of ownership. Though the lenders approached the appellate tribunal against NCLT’s order, the NCLAT upheld the tribunal’s order and directed the transfer of ownership within 90 days.

OB Bureau

Recent Posts

[Watch] Snowfall In Desert For The First Time!

Dubai: The effects of global climate change are being seen in various manifestations across the globe.…

November 7, 2024

Police Case Against Websites Selling T-Shirts With Photos Of Dawood, Bishnoi

Mumbai: When criminals are idolised and used for commercial purposes, police are bound to take action.…

November 7, 2024

11 Years After Criminal’s Murder In Bomb Explosion, Court In Odisha Sentences 11 Accused To Life

Berhampur: The Ganjam district and sessions court here on Thursday sentenced 11 persons to life…

November 7, 2024

Astronaut Sunita Williams’ Health Deteriorates Due To Extended Stay In Space

New York: Recent pictures of Sunita Williams and Barry 'Butch' Wilmore from the International Space…

November 7, 2024

India Calls Out Canada’s ‘Hypocrisy’ For Blocking Australian Media Outlet After Jaishankar Interview

New Delhi: Bilateral relations having hit an all-time low since Justin Trudeau’s accusation of Indian involvement…

November 7, 2024

Mango Kernel Incident In Odisha: Report Reveals Faecal Contamination, Presence Of Hydrogen Sulphide

Bhubaneswar: Faecal contamination was found in the food and water samples sent for test following…

November 7, 2024

Path-Breaking Legislation: Social Media To Be Banned For Children Under 16 In This Country

New Delhi: The internet and social media are considered to be harmful for children. But…

November 7, 2024

Bigg Boss 18: Salman Khan To Be Replaced By Pair Of New Hosts; Know Who & Why

Mumbai: Salman Khan has been hosting the television reality show ‘Bigg Boss’ since its fourth…

November 7, 2024