In a landmark decision today, the Supreme Court has ordered the liquidation of Jet Airways, India’s once-prominent airline, effectively concluding the prolonged attempts to revive the carrier. The court cited the non-implementation of key elements of the resolution plan by the Jalan Kalrock Consortium (JKC), which had emerged as the winning bidder in Jet Airways’ insolvency proceedings.
The Supreme Court held that JKC had failed to fulfill crucial obligations, including the promised infusion of funds and settlement of outstanding employee dues, both vital to Jet Airways’ potential resurgence. Despite a detailed revival plan outlined in 2021, JKC’s lack of compliance with the agreed terms prompted the court’s decision to proceed with liquidation.
This judgment brings a definitive end to the airline’s nearly five-year struggle since it ceased operations in 2019 due to mounting debts. Jet Airways’ liquidation is a stark reminder of the challenges in India’s corporate insolvency framework, as well as the complexities faced by creditors and employees during the resolution process.
Industry analysts view the court’s decision as a pivotal case in India’s insolvency proceedings, highlighting the necessity for stringent compliance by resolution applicants. It also underscores the need for reforms to ensure that future insolvency resolutions prioritize transparency and commitment from all stakeholders.
With today’s ruling, the liquidation process will now move forward, marking a new chapter in the airline’s storied history and offering critical insights into India’s corporate restructuring landscape.
