Delhi Delhi: On Thursday, the Supreme Court has decided to set aside the order of the National Company Law Appellate Tribunal (NCLAT) in which the ownership of the defunct airline Jet Airways was transferred to the Jalan-Kalrock Consortium (JKC) under the approved resolution plan. Permission to transfer was given. The Supreme Court's decision comes in view of the “peculiar and worrying” situation that the resolution plan has not been implemented for five years.
In response to the appeal by the committee of creditors led by State Bank of India (SBI) and other lenders, it said the revival plans are not in the best interest of the lenders, ANI reported. The committee also raised questions on the NCLT order for the resolution plan.
The Supreme Court found that the consortium formed for the revival of bankrupt airlines failed to raise even the first installment of funds within the time interval prescribed by the resolution plan. The judgment included bank guarantee of Rs 150 crore deposited by JKC and payment by the SRA. An amount of Rs 200 crore was confiscated. The Supreme Court has also directed the Mumbai bench of NCLT to take forward the liquidation process of the cash-strapped airline and appoint a liquidator to pay its creditors.
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