No More Jet Airways. Supreme Court Says “No Choice”, Orders Liquidation

No More Jet Airways. Supreme Court Says “No Choice”, Orders Liquidation


Jet Airways was grounded in April 2019 (File).

New Delhi:

Jet Airways’ property can be liquidated, the Supreme Court stated Thursday afternoon, invoking ‘extraordinary’ powers underneath Article 142 to put aside a tribunal’s choice to uphold a decision plan and switch possession – to the Jalan-Kalrock Consortium – with out full fee to collectors.

Article 142 permits the court docket to make orders for ‘full justice’ in any pending matter. In this occasion, it famous “peculiar and alarming” circumstances of the case – referring to improper implementation of the decision plan – and stated it had, due to this fact, “no alternative however to ship Jet Airways into liquidation”.

“Liquidation should be accessible to lenders as a final resort… since decision plan is now not able to implementation,” Chief Justice DY Chandrachud and Justices JB Pardiwala and Manoj Misra stated, permitting a plea by collectors, together with the State Bank of India and the Punjab National Bank.

The court docket stated liquidation would greatest serve the pursuits of collectors, staff and different stakeholders, and in addition rapped the National Company Law Appellate Tribunal for its choice to uphold decision regardless of non-payment to collectors.

The tribunal, on March 12, had upheld the decision plan and cleared switch of possession, however that was challenged by the raft of collectors after the consortium’s alleged failure to pay dues.

One of the first points earlier than the Supreme Court on this listening to was that the NCLAT had allowed switch of possession regardless of JKC failing to pay an preliminary Rs 350 crore as required by the decision plan. Overall JKC was required to pay Rs 4,783 crore.

In this context the court docket dominated the Rs 200 crore already infused is to be forfeited and directed the NCLAT’s Mumbai bench to nominate a liquidator.

JKC earlier requested the NCLAT for permission to maneuver the Rs 200 crore to an escrow account, however withdrew that plea in May after the tribunal denied aid, noting the highest court docket is listening to the matter.

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Jet Airways was grounded in April 2019 and, two years later, JKC – a consortium of Murari Jalan, a United Arab Emirates-based non-resident Indian, and Florian Fritsch, a Jet shareholder by way of an offshore holding firm known as Kalrock Capital Partners Limited – efficiently bid for possession.

READ | Jet Says Resolution Plan Being Implemented, This autumn Result Delayed

Subsequently, a monitoring committee was set as much as oversee plan implementation, however there have been authorized and monetary delays. In May Jet introduced a delay in declaring monetary outcomes for the quarter and 12 months ending March, and that the monitoring committee would meet quickly to clear the info.

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