SC orders liquidation of grounded carrier Jet Airways' assets
Bench raps NCLAT for upholding resolution plan of Jet Airways and approving the transfer of its ownership to Jalan Kalrock Consortium
Using its extraordinary constitutional powers, the Supreme Court has ordered the liquidation of the assets of the grounded air carrier Jet Airways.
Chief Justice DY Chandrachud and Justices JB Pardiwala and Manoj Misra on Thursday (November 7) set aside a decision of the National Company Law Appellate Tribunal (NCLAT).
SC pulls up NCLAT
The bench rapped the NCLAT for upholding the resolution plan of Jet Airways and approving the transfer of its ownership to Jalan Kalrock Consortium (JKC).
The State Bank of India, the Punjab National Bank and JC Flowers Asset Reconstruction Pvt Ltd had challenged the NCLAT verdict.
SC for airline’s liquidation
Pronouncing the judgement, Justice Pardiwala allowed the plea of the SBI and other creditors. The court said the liquidation of the airline was in the interest of creditors, workers and other stakeholders.
The Supreme Court used its powers under Article 142 of the Constitution which gives it the power to make orders and decrees to ensure complete justice in any matter or cause pending before it.
The NCLAT had on March 12 upheld the resolution plan of the grounded air carrier and approved the transfer of its ownership to JKC.(With agency inputs)