Supreme Court orders Jet Airways liquidation over unfulfilled resolution plan

On Thursday, the Supreme Court ordered the liquidation of Jet Airways' assets due to the incomplete implementation of a resolution plan by the Jalan-Kalrock Consortium (JKC). Exercising its "extraordinary" authority under Article 142, the court overturned the National Company Law Appellate Tribunal's (NCLAT) earlier decision to transfer ownership without ensuring full payment to the airline’s creditors.

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Article 142 grants the court the power to provide "complete justice" in unique cases. In this instance, the bench, led by Chief Justice DY Chandrachud along with Justices JB Pardiwala and Manoj Misra, determined that liquidation was the only viable option left for lenders, noting the resolution plan was unworkable as originally intended.

The ruling came after a plea from creditors, including the State Bank of India and Punjab National Bank, who opposed the NCLAT’s March 12 order. The consortium reportedly failed to fulfill its financial obligations, including an initial ₹350 crore payment out of a total commitment of ₹4,783 crore.

The court further ruled that the ₹200 crore already infused by JKC would be forfeited and criticized the NCLAT for approving the transfer of ownership despite unpaid dues. The Mumbai bench of the NCLAT has been instructed to appoint a liquidator to handle the asset liquidation process.