India’s Supreme Court Orders Jet Airways’ Liquidation
The Supreme Court of India has officially ordered the liquidation of Jet Airways, extinguishing any hopes of reviving the once-prominent airline. The ruling, delivered by Chief Justice D.Y. Chandrachud and a three-judge panel on November 7, 2024, comes after a decision that had been pending since October 16, 2024.
In March 2024, the National Company Law Appellate Tribunal (NCLAT) approved the transfer of Jet Airways’ ownership to the Jalan-Kalrock Consortium (JKC), following the endorsement of a five-year resolution plan in 2021 that aimed to restart the airline’s operations in 2024. However, the Supreme Court found that JKC had failed to meet its financial commitments under the resolution plan, including an unpaid amount of Rs150 crore (approximately $1.77 million) out of the Rs350 crore (approximately $4.15 million) required to settle airport debts and other critical expenses for employees.
The court highlighted JKC’s inability to achieve significant milestones, such as obtaining an air operator’s certificate, due to an insufficient number of aircraft in its fleet. Requests from the State Bank of India (SBI) and other lenders for the airline’s closure were also considered, as they claimed the consortium had not met its financial obligations.
Justice Pardiwala remarked, “This litigation is an eye-opener and has taught us many lessons.”
In response, JKC claimed to have invested over Rs700 crore (approximately $8.30 million) to aid the airline’s revival, citing delays from lenders and regulatory issues, which the court deemed insufficient.
In 2023, the transfer of Jet Airways’ ownership to the consortium led by UK-based Kalrock Capital and UAE businessman Murari Jalan was approved by India’s national company law tribunal. This move aimed to restore the airline, which had been the largest private carrier in India before ceasing operations in 2019.
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