Supreme Court orders Jet Airways liquidation: In a significant ruling, the Supreme Court has overturned the National Company Law Appellate Tribunal (NCLAT) decision permitting ownership transfer to the Successful Resolution Applicant (SRA) despite incomplete payment under the approved resolution plan. The court has also ordered the immediate liquidation of Jet Airways.Earlier, the NCLAT had approved the transfer of Jet Airways ownership to the Jalan-Kalrock Consortium (JKC) under its resolution plan. However, the Supreme Court upheld appeals filed by the State Bank of India (SBI) and other lenders, ordering liquidation in light of payment non-compliance.SBI and lenders challenge leads to court reversalIn response to petitions by SBI and other creditors, the Supreme Court directed the Mumbai NCLAT bench to appoint a liquidator immediately. The court also mandated the forfeiture of Rs 200 crore deposited by the SRA.The judgment, reserved on October 16, was delivered by a bench comprising Chief Justice DY Chandrachud, along with Justices JB Pardiwala and Manoj Misra. The Chief Justice is set to retire this Friday.Supreme Court cites NCLAT orders legal violationsThe Supreme Court highlighted that the NCLATs decision, including the adjustment of Rs 350 crore against the Performance Bank Guarantee (PBG), conflicted with a previous Supreme Court ruling from January 18. Justice Pardiwala remarked that the case provided valuable lessons on the Insolvency and Bankruptcy Code (IBC) and the NCLATs functioning.The court criticized the NCLATs misinterpretation of its January order, stating that legal principles were misapplied in allowing the transfer under the resolution plan.Who are the counselsSenior Advocates Mukul Rohatgi and Gopal Sankaranarayanan represented the SRA and JKC in court, while Additional Solicitor General (ASG) N Venkataraman represented SBI, Jet Airways primary lender.
