Supreme Court Orders Liquidation of Jet Airways

Aakhir Tak – In Shorts

• Supreme Court orders liquidation of Jet Airways.
• Jalan Kalrock Consortium (JKC) failed to meet revival conditions.
• No significant progress in airline revival over five years.
• Supreme Court orders forfeiture of JKC’s invested funds.
• This is the second major airline liquidation after GoFirst.

Aakhir Tak – In Depth

On November 7, the Supreme Court directed the liquidation of Jet Airways, officially ending all efforts to revive the grounded airline. The court noted that Jalan Kalrock Consortium (JKC), the successful bidder for Jet Airways, failed to fulfill key conditions, including fund infusion and employee dues payment.

JKC’s Failures

JKC did not inject the promised ₹350 crore, which was crucial to the revival plan. Additionally, ₹226 crore in employee dues were left unpaid. The Supreme Court criticized the adjustment of the Performance Bank Guarantee (PBG) against the initial payment tranche, deeming it legally inappropriate.

No Progress After Five Years

The court also noted that five years had passed without significant revival progress. JKC’s ₹200 crore investment will be forfeited, and lenders will invoke the ₹150 crore PBG to recover some dues.

The Liquidation Process

Lenders filed a petition, alleging JKC had misused the Insolvency and Bankruptcy Code (IBC) process and failed key commitments, including a ₹350 crore payment and necessary approvals like the air operator certificate. Despite JKC’s claims of external factors delaying payments, the court deemed the revival plan unviable and ordered liquidation.

This decision ends long-standing efforts to revive Jet Airways, which has been grounded since 2019, marking it as the second major airline after GoFirst to undergo liquidation under IBC.

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