Revival hopes for Jet Airways obtained a mortal blow on Thursday because the Supreme Court docket ordered its liquidation. Because the non-operational airline’s acquisition bid-winner Jalan Kalrock Consortium had didn’t infuse ₹350 crore as an preliminary tranche and meet different obligations underneath a decision plan, the apex court docket mentioned it was left with “no alternative however to ship Jet Airways into liquidation”.
It overturned a call of the Nationwide Firm Regulation Appellate Tribunal to uphold an order for its possession switch to the consortium and held it at fault for letting a ₹150 crore efficiency financial institution assure be adjusted in opposition to the ₹350 crore infusion.
The airline, grounded since 2019, has witnessed twists and turns over its standing. The consortium alleged that its lenders who took cost after pushing it into insolvency weren’t turning its possession over, whereas the banks mentioned the acquirer wanted to infuse funds as required by the plan.
In the meantime, these whose dues needed to be paid have been saved ready. That confusion prevailed for thus lengthy displays poorly on India’s chapter course of. Fast rescues have been a key intention of the brand new code enacted in 2016. This case has been a high-profile let-down.
