The Supreme Court has exercised its extraordinary constitutional authority, ordering the liquidation of grounded airline Jet Airways’ assets.
A bench comprising Chief Justice DY Chandrachud and Justices JB Pardiwala and Manoj Misra on Thursday overturned the National Company Law Appellate Tribunal (NCLAT) decision that supported Jet Airways’ resolution plan and approved the transfer of ownership to the Jalan Kalrock Consortium (JKC).
Delivering the judgement on behalf of the bench, Justice Pardiwala upheld the appeal by the State Bank of India (SBI) and other creditors, setting aside the NCLAT ruling favouring JKC’s resolution plan for Jet Airways.
It stated that creditors, workers and other stakeholders will benefit from the airline’s liquidation. The NCLAT’s ruling was criticised by the bench. To guarantee complete fairness in whatever case or matter before it, the top court exercised its authority under Article 142 of the Constitution, which grants it the authority to issue orders and decrees.
On March 12, the NCLAT allowed the transfer of ownership to JKC and upheld the grounded air carrier’s resolution plan. The NCLAT ruling has been contested by JC Flowers Asset Reconstruction Private Limited, Punjab National Bank (PNB) and SBI.
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