“This airline’s existence is over… Assets will also be sold” big order of Supreme Court

New Delhi: The crisis-hit airline Jet Airways was already shut down. Now the Supreme Court has ordered the sale of its assets. Today, on 7 November, the Supreme Court has ordered the liquidation of this troubled airline, that is, the sale of its assets. The country’s highest court rejected the decision of the National Company Law Appellate Tribunal regarding this.

NCLAT had ruled to give the ownership of Jet Airways to Jalan-Kalrock Consortium under the approved resolution plan. However, SBI and other creditors had filed a petition in the Supreme Court against this decision. The Supreme Court rejected the consortium’s proposed resolution plan to bring Jet Airways back on track and said that the consortium could not pay even the first installment within the stipulated time. The Supreme Court had reserved this decision on October 16 itself and it was pronounced by a three-judge bench headed by Chief Justice DY Chandrachud. The bank guarantee of Rs 150 crore given by Jalan Kalrock has also been confiscated.

The consortium had promised a capital investment of Rs 350 crore to get the ownership of Jet Airways under the resolution plan. A three-member bench of NCLAT had approved the adjustment of the bank guarantee of Rs 150 crore from this. The lenders also alleged that they are continuously paying airport charges and other expenses at the rate of Rs 22 crore every month, and have spent more than Rs 350 crore so far.

Senior advocate Harish Salve said on behalf of the lenders in the Supreme Court that an airline needs at least 20 aircraft, while the consortium has acquired only five aircraft. On the other hand, senior advocate Mukul Rohatgi, on behalf of Jalan-Kalrock, strongly denied all the allegations. He said that the consortium did not take advantage of the lenders’ offer because they had to pay Rs 350 crore anyway. When the consortium staked its claim on Jet Airways, the Committee of Creditors urged the Supreme Court to liquidate Jet Airways, after which this decision of the Supreme Court has come.