NCLT’s decision cancelled, Supreme Court orders to sell the assets of defunct Jet Airways

New Delhi. Using its special constitutional powers, the Supreme Court on Thursday ordered the sale of the assets of the defunct airline Jet Airways. A bench of Chief Justice D.Y.

Chandrachud and Justices J.B. Pardiwala and Manoj Mishra rejected the decision of the National Company Law Appellate Tribunal (NCLT) to uphold the resolution plan of Jet Airways and approve the transfer of its ownership to Jalan Kalrock Consortium (JKC).

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While delivering the verdict on behalf of the bench, Justice Pardiwala accepted the petition of SBI and other lenders against the decision of NCLAT. The petition opposes the decision to maintain the resolution plan of Jet Airways in favor of JKC. The court said that the liquidation of the aviation company is in the interest of creditors, workers and other stakeholders. In the process of liquidation, loans are paid from the money obtained by selling the assets of the company.

Powers granted under Article 142 were used

The apex court used its special powers under Article 142 of the Constitution, which empowers it to issue orders and decrees to ensure complete justice in any case or matter pending before it. The NCLAT had on March 12 upheld the resolution plan of the defunct aviation company and approved the transfer of its ownership to JKC. State Bank of India (SBI), Punjab National Bank (PNB) and JC Flowers Asset Reconstruction Private Limited had approached the court against the NCLAT decision.

The hearing on the petition of State Bank of India (SBI) and other lenders was completed on October 16 and the bench of Chief Justice of India DY Chandrachud, Justice JB Pardiwala and Justice Manoj Mishra had reserved the decision. The petition challenges the decision of the National Company Law Appellate Tribunal (NCLAT), which upheld the resolution plan of Jet Airways and approved the transfer of its ownership to Jalan Kalrock Consortium (JKC).

On March 12, NCLAT upheld the resolution plan of the defunct Jet Airways and approved the transfer of its ownership to Jalan Kalrock Consortium (JKC). Also, the appellate tribunal directed the monitoring committee of Jet Airways to complete the ownership transfer process within 90 days. Apart from this, NCLAT also ordered the lenders of Jet Airways to adjust Rs 150 crore deposited by the consortium as performance bank guarantee (PBG). SBI, Punjab National Bank (PNB) and JC Flowers Asset Reconstruction Private Limited had challenged this decision of NCLAT of March 12 in the Supreme Court.

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