Jet Airways Assets Auctioned: Supreme Court orders liquidation of the airline, know since when the airline is closed…

Jet Airways Assets Auctioned: The Supreme Court has ordered the liquidation of Jet Airways. This means that now there is no possibility of Jet Airways starting. Its assets will be given to the lenders. On Thursday 7 November, the court overturned the decision of the National Company Law Appellate Tribunal (NCLAT).

Recently, NCLAT in its order had given permission to transfer the ownership of cash-strapped Jet Airways to Jalan-Kalrock Consortium (JKC) without making full payment under the resolution plan.

The bench of CJI DY Chandrachud and Justices JB Pardiwala and Manoj Mishra had reserved the decision on October 16. The NCLAT order was challenged by lenders led by State Bank of India.

This decision was reversed because the resolution plan was not implemented for five years.

The Supreme Court, using its extraordinary powers under Article 142 of the Constitution, ordered the liquidation of Jet Airways. This order was given in view of the “peculiar and worrying” situation. The court did this because the resolution plan was not implemented for 5 years.

Jet Airways Assets Auctioned: Order to seize Rs 200 crore paid by consortium

The court directed the Mumbai bench of NCLT to immediately appoint a liquidator. An amount of Rs 200 crore paid by the Jalan-Kalrock consortium has been seized.

The airline ceased operations on 17 April 2019.

Jet Airways was shut down on 17 April 2019 amid increasing financial troubles. The biggest loan to this airline was given by State Bank of India, hence the bank started bankruptcy proceedings against the company before NCLT Mumbai.

Later Jet was included in the resolution process. In June 2021, the Jalan-Kalrock consortium won the bid for Jet Airways under the insolvency resolution process of the NCLT. Since then, there has been a dispute between JKC and the lenders regarding the transfer of ownership.

JKC had claimed that the lenders were not starting the process of transfer of the airline. Also, the lenders argued that JKC has not invested any money yet.