Headline
The Supreme Court of India orders liquidation of Jet Airways over unenforced resolution plan.
Summary
The Supreme Court of India invoked Article 142 of the Indian Constitution to liquidate the due of Jet Airways to the unresolved status of its resolution plan for 5 years, setting aside the ownership transfer order of NCLAT.
Key Facts
- Case Name: State Bank of India and Ors. vs. The Consortium of Mr. Murari Lal Jalan and Mr. Florian Fritsch and Anr. (C.A. No. 5023-5024/2024)
- Judges Name: Chief Justice DY Chandrachud, Justice JB Pardiwala, Justice Manoj Misra
- The issue was the challenge to NCLAT’s ownership transfer order without full payment.
- Resolution plan unimplemented for 5 years.
Legal Insights
The order of NCLAT permitting adjustment of payment against Performance Bank Guarantee was deemed “perverse” and contrary to the Supreme Court of India January 18 order.
Impact
Liquidation proceedings will begin, with Rs 200 crores paid by Successful Resolution Applicant (SRA) forfeited.
Why It Matters
This verdict of the Supreme Court of India ensures accountability in corporate insolvency resolution processes and safeguards lenders’ interests.
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