The Supreme Court on Thursday overturned the decision of the National Company Law Appellate Tribunal (NCLAT), which had approved the transfer of ownership of the financially troubled Jet Airways to the Jalan-Kalrock Consortium (JKC).

The proclamation was made by the court after the resolution plan was approved by the National Company Law Appellate Tribunal (NCLAT) but was not implemented for five years. As the Jalan-Kalrock Consortium (JKC), the winning bidder for Jet Airways failed to meet the conditions marked in the resolution plan, the Supreme Court has directed the liquidation of the airline.

The Supreme Court using its special power under Article 142 of the constitution decided to dissolve the airline after seeing that the JKC had not fulfilled key obligations marked in the resolution plan. It also overturned the March 2024 order of NCLT which declared the transfer of ownership to JKC. The court schooled NCLAT for disregarding its previous ruling that allows ownership to JKC without fully examining the facts.

The Supreme Court instructed the NCLT Mumbai Bench to immediately appoint a liquidator for Jet Airways. It further ordered the decline of the Rs 200 crore paid by the successful resolution applicant (SRA).
SBI-led lenders of Jet Airways challenged the NCLAT's decision in the Supreme Court, arguing that the Jalan-Kalrock Consortium's (JKC) resolution plan was unworkable. They asked the court to use its powers to liquidate the airline.

The Supreme Court agreed, stating that since the resolution plan couldn’t be implemented, liquidation should be an option for the creditors. The court emphasised the need for quick resolution and fair justice in the matter.
The tough task before the court was to challenge the decision of NCLAT which allowed the transfer of the ownership of the airlines to the JKC with paying the complete amount of Rs 350 crore. As per the resolution, JKC was supposed to pay a sum of Rs 4783 crores and infuse 350 crores in the first tranche of the payment as agreed.

However, JKC in its defence said that it was making every possible effort to restart operations, the lenders accused the consortium of deliberately delaying progress and pushing the airline toward liquidation.

Jet Airways, which was founded by Naresh Goyal, is facing bankruptcy in April 2019 and suspended its flight operations due to financial troubles. JKC's resolution plan for Jet Airways promised to introduce funds, clear creditors' dues, and revive flight operations. However, the plan faced major delays in execution, leading to a long legal battle with the lenders that lasted over five years.