Supreme Court: The Supreme Court has ordered the liquidation of Jet Airways. In the liquidation process, a bankrupt company is closed and its assets are distributed among the creditors. NCLAT had asked a company named Jalan-Karlok Consortium (JKC) to run Jet Airways. Jet's other lenders including State Bank of India were opposing it.
Jet Airways, which was facing financial crisis, had a debt of more than Rs 7,500 crore. The company filed bankruptcy in NCLT (National Company Law Tribunal) in 2019. After this, bids were invited to run Jet Airways. Through this, JKC acquired ownership rights on Jet Airways, which was accepted by NCLT. In March this year, NCLAT (National Company Law Appellate Tribunal) had also approved it.
Lenders had called NCLAT's order wrong
The lenders who approached the Supreme Court against the NCLAT order said that JKC is not eligible to run Jet Airways. It has not even made the initial payment of Rs 350 crore fixed under the resolution plan to the banks. He has not even been able to obtain the necessary approval to start flight operations. The order of NCLT and NCLAT to give ownership of the jet to JKC is wrong.
'Don't want to give a chance'
In response to this, JKC had said that banks are only looking at their profits. They hope to earn more for themselves by liquidating Jet. He does not want to give JKC a chance to run Jet Airways. Resumption of Jet Airways will be good for India's civil aviation sector.
Supreme Court said this in its order
Justice JB Pardiwala read the verdict on behalf of the three-judge bench headed by the Chief Justice of the Supreme Court. He said that in the process of handing over the control of Jet Airways to JKC, the Indian Insolvency and Bankruptcy Code has been violated. PBG (Performance Bank Guarantee) could not be relaxed on the basis of payment of some amount by JKC. He said that liquidation of Jet Airways would be the right thing to secure the money of the lenders.
At the end of the decision, the Supreme Court, using its special powers, ordered the liquidation of Jet Airways. The court has asked NCLAT to appoint a liquidator to complete this process.
