The Supreme Court on Thursday (November 7) overturned the National Company Law Appellate Tribunal (NCLAT) decision that had supported the transfer of Jet Airways’ ownership to the Jalan-Kalrock Consortium (JKC) under an approved resolution plan. The ruling came after an appeal by the State Bank of India (SBI) and other creditors.
The Court ruled that the NCLAT’s decision to permit the adjustment of the first tranche payment of Rs 350 crores against the Performance Bank Guarantee (PBG) was in “flagrant disregard” of the Supreme Court’s January 18 order and deemed it “perverse.”
Jet Airways ceased operations in 2019 due to severe financial difficulties. The State Bank of India, its main creditor, initiated insolvency proceedings against the airline, leading to its admission into the resolution process by the NCLT Mumbai. In 2021, the Jalan-Kalrock Consortium (JKC) was selected as the successful resolution applicant to revive and restart the airline’s operations.