Jet Airways’ assets will be liquidated, the Supreme Court said,invoking ‘extraordinary’ powers under Article 142 to set aside a tribunal’s decision to uphold a resolution plan and transfer ownership – to the Jalan-Kalrock Consortium – without full payment to creditors.
Article 142 allows the court to make orders for ‘complete justice’ in any pending matter. In this instance, it noted “peculiar and alarming” circumstances of the case – referring to improper implementation of the resolution plan – and said it had, therefore, “no choice but to send Jet Airways into liquidation”.
“Liquidation must be available to lenders as a last resort… since resolution plan is no longer capable of implementation,” Chief Justice DY Chandrachud and Justices JB Pardiwala and Manoj Misra said, allowing a plea by creditors, including the State Bank of India and the Punjab National Bank.
