Jet Airways’ properties will be sold, Supreme Court gave the order, rejected NCLT’s decision
The Supreme Court, exercising its special constitutional powers, ordered the sale of assets of defunct airline Jet Airways. A bench of Chief Justice DY Chandrachud and Justices JB Pardiwala and Manoj Mishra set aside the National Company Law Appellate Tribunal’s (NCLAT) decision to uphold Jet Airways’ resolution plan and allow the transfer of its ownership to Jalan Kalrock Consortium (JKC).
NCLT reprimanded
Delivering the verdict on behalf of the bench, Justice Pardiwala accepted the petition of SBI and other lenders against the decision of NCLAT. The petition opposes the decision to uphold the resolution plan of Jet Airways in favor of JKC. The court said that the liquidation of the aviation company is in the interest of creditors, workers and other stakeholders. In the process of liquidation, loans are paid from the money received by selling the assets of the company. The bench also reprimanded NCLAT for its decision.
Used special powers
The apex court used its special powers under Article 142 of the Constitution, which gives it the right to issue orders and decrees to ensure complete justice in any case or matter pending before it. NCLAT had upheld the resolution plan of the defunct aviation company on March 12 and approved the transfer of its ownership to JKC. State Bank of India (SBI), Punjab National Bank (PNB) and JC Flowers Asset Reconstruction Pvt Ltd had approached the court against the NCLAT decision.