NEW DELHI: The Supreme Court on Thursday scrapped the resolution plan for revival of bankrupt Jet Airways by Jalan-Fritsch consortium and ordered the liquidation of grounded airline Jet Airways' assets. SC ruled that the resolution plan was violated after the consortium failed to infuse even the first tranche of funds within the stipulated timeline, as mandated by the plan. Additionally, the Rs 200 crore previously infused by the Jalan-Fritsch consortium will be forfeited.
A bench led by Chief Justice DY Chandrachud, alongside Justices JB Pardiwala and Manoj Misra, overturned the National Company Law Appellate Tribunal (NCLAT) decision that had upheld the airline's resolution plan, which transferred ownership to the Jalan Kalrock Consortium (JKC). Justice Pardiwala, delivering the judgment on behalf of the bench, allowed the appeal of SBI and other creditors, who had contested the NCLAT's approval of the plan. The court found that the liquidation of Jet Airways was in the best interest of its creditors, employees, and other stakeholders.
The bench strongly criticized the NCLAT for its decision and invoked its powers under Article 142 of the Constitution. This provision grants the apex court the authority to pass orders and decrees to ensure complete justice in any pending matter. SC said, "This litigation is an eye-opener and taught us many lessons on IBP and functioning of NCLAT and NCLT.
" The NCLAT had earlier, on March 12, upheld the resolution plan of Jet Airways and appr.