Supreme Court Orders Liquidation of Jet Airways For Failing To Implement Resolution Plan

New Delhi: The Supreme Court of India, on Thursday, ordered the liquidation of Jet Airways, invoking its special powers under Article 142 of the Constitution of India. This decision came after a five-year delay in implementing the airline’s resolution plan.

The Court overturned a previous NCLAT order that permitted the financially distressed Jet Airways to transfer ownership to the Successful Resolution Applicant (SRA) without fully complying with the payment terms outlined in the resolution plan. The Supreme Court instructed the NCLT Mumbai Bench to promptly appoint a liquidator.

The ruling was delivered by a bench consisting of Chief Justice DY Chandrachud and Justices JB Pardiwala and Manoj Misra, who had reserved judgment on October 16. The SBI-led consortium of lenders had challenged the NCLAT decision, which had allowed the first tranche of Rs 350 crore to be adjusted against the Performance Bank Guarantee (PBG). However, the Supreme Court criticized this decision as “perverse” and in “flagrant disregard” of its earlier order issued on January 18, 2024.