North News
New Delhi, November 7
In a landmark ruling for India’s aviation sector, the Supreme Court on Wednesday directed the liquidation of the grounded airline Jet Airways under the Insolvency and Bankruptcy Code (IBC). A bench led by Chief Justice DY Chandrachud, alongside Justices JB Pardiwala and Manoj Misra, said that the NCLAT’s order was flawed.
The judgment ended the prolonged legal battle over Jet Airways, which was grounded in April 2019 due to financial difficulties. According to media reports, it follows a series of deliberations on whether the Jalan Kalrock Consortium (JKC), the successful resolution applicant, met its obligations and whether the creditors were justified in seeking liquidation.
The court found that JKC’s failure to meet the conditions outlined in the resolution plan, including the misapplication of a ₹150 crore performance bank guarantee against a ₹350 crore payment, had contributed to the collapse of the resolution process, the news outlet the Bar and Bench reported.
The court emphasized that the JKC had contravened the terms of the resolution plan, making its implementation impossible. As a result, the bench ordered the liquidation of the airline, underscoring the need for swift and effective resolution in corporate insolvency cases, the news outlet further said.
