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The Indian aviation landscape has witnessed a tumultuous period in recent years, with the demise of several airlines leaving a void in the market. One such case that has captivated the attention of the nation and its stakeholders is the liquidation of Jet Airways, a once-iconic carrier that faced financial struggles and ultimately succumbed to the pressures of a challenging industry. This article delves into the story of Jet Airways' downfall, tracing the events that led to its liquidation, highlighting the role of the Supreme Court and NCLAT, and examining the consequences for its lenders, employees, and the broader aviation industry.
In January 2023, the Supreme Court issued a landmark judgment in the Jet Airways case, setting out the framework for its revival. However, the National Company Law Appellate Tribunal (NCLAT) took a divergent path, its judgment in flagrant disregard of the Supreme Court’s order. This deviation proved to be the final nail in the coffin for Jet Airways. The NCLAT’s decision to allow the adjustment of a Rs 150 crore performance bank guarantee (PBG) against a required infusion of Rs 350 crore from the Jalan-Kalrock Consortium (JKC), the resolution applicant, was seen as a blatant disregard for the Supreme Court’s authority and a sign of a flawed resolution process.
The Supreme Court, in its recent ruling, deemed the NCLAT's decision as a violation of its previous order. The apex court asserted that the NCLAT's actions had hampered the implementation of the resolution plan and jeopardized the interests of Jet Airways' lenders and employees. The failure of the Jalan-Kalrock Consortium to execute the resolution plan, despite five years of its approval, further solidified the Supreme Court's decision to order the liquidation of Jet Airways. This decision signifies the end of an era for the airline, leaving behind a legacy of both success and struggle.
Source: Jet Airways Liquidation Ordered by Supreme Court: Story So Far