Now Jet Airways will never be able to start, Supreme Court orders to sell all the assets of the airline, the airline is closed since 2019
New Delhi. Jet Airways will never be able to start again, the Supreme Court today ordered the liquidation of Jet Airways. Liquidation means seizing a company’s assets and using the proceeds from selling them to repay its debts and liabilities.
In this order of the Supreme Court, the decision of the National Company Law Appellate Tribunal (NCLAT) was overturned. In March, NCLAT had given its decision to hand over the ownership of Jet Airways to Jalan & Kalrock Consortium (JKC) under the resolution plan (to rescue the airlines from crisis). It is noteworthy that due to the economic crisis, the operation of Jet Airways is closed since 2019. At that time, Airways had a loan of Rs 4783 crore from many banks.
The maximum loan was given by State Bank of India. Banks had started bankruptcy proceedings after the airlines started incurring losses. Under the resolution plan, JKC was to get the ownership rights. Banks appealed against this in the Supreme Court. The Supreme Court said in its decision that liquidation would be in the interest of its creditors and employees. Because the Jalan-Kalrock Consortium has failed to implement the resolution plan even after 5 years of approval.
In view of the strange and worrying situation, the court used its extraordinary powers under Article 142 of the Constitution to order liquidation of Jet Airways. It is noteworthy that as per the resolution plan, Jalan-Kalrock Consortium was to pay Rs 4783 crore. Rs 350 crore was to be given in the first installment. In which the consortium was able to give only Rs 200 crore.
A bench of Chief Justice DY Chandrachud, Justice JB Pardiwala and Justice Manoj Mishra ordered NCLT Mumbai to appoint a liquidator. In the petition filed in the Supreme Court, many banks including SBI said that this consortium failed to fulfill the conditions set for the acquisition of the airline. Now the airline is not in a position to revive. The consortium had deposited only Rs 200 crore out of Rs 350 crore under the resolution plan.
JKC failed to fulfill other important obligations including obtaining air operator certificate and international rights. Due to the long delay in reviving Jet Airways, the airline was incurring a loss of Rs 22 crore every month for the maintenance of its assets. Apart from this, Jet Airways owes approximately Rs 7500 crore to its creditors, which made the situation more complicated.
Source : palpalindia
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