NEW DELHI, Nov 7:
In a major development in the Jet Airways insolvency saga, the Supreme Court on Thursday ordered the grounded airline’s liquidation, forfeiture of Rs 200 crore infused by successful bidder Jalan Kalrock Consortium and permitted the lenders led by SBI to encash Rs 150 crore performance bank guarantee.
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Invoking its extraordinary powers under Article 142 of the Constitution, a bench comprising Chief Justice D Y Chandrachud and Justices J B Pardiwala and Manoj Misra put the curtains down on the insolvency proceedings of the airlines by setting aside the order of the National Company Law Appellate Tribunal (NCLAT).
The bench termed the case as an “eye opener” and rapped NCLAT for allowing adjustment of performance bank guarantee (PBG) in view of payment of the first tranche by Jalan Kalrock Consortium (JKC).
Insolvency appellate tribunal NCLAT had allowed JKC to take over Jet Airways without fully complying with its payment obligations, it observed. (PTI)
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