The Supreme Court, using its special constitutional powers, on Thursday ordered the sale of the assets of the defunct aviation company Jet Airways. A bench of Chief Justice D.Y.
Chandrachud and Justices J.B. Pardiwala and Manoj Mishra rejected the decision of the National Company Law Appellate Tribunal (NCLAT) to uphold the resolution plan of Jet Airways and approve the transfer of its ownership to Jalan Kalrock Consortium (JKC).
SBI, PNB got big relief
While delivering the verdict on behalf of the bench, Justice Pardiwala accepted the petition of SBI and other lenders against the decision of NCLAT. The petition opposes the decision to maintain the resolution plan of Jet Airways in favor of JKC.
The Supreme Court reprimanded NCLAT
The court said that the liquidation of the aviation company is in the interest of creditors, workers and other stakeholders. In the process of liquidation, loans are paid from the money obtained by selling the company’s assets. The bench also reprimanded NCLAT for its decision.
The apex court exercised its special powers under Article 142 of the Constitution, which empowers it to issue orders and decrees to ensure complete justice in any case or matter pending before it.
SBI, PNB had approached the Supreme Court
The NCLAT had upheld the resolution plan of the defunct aviation company on March 12 and approved the transfer of its ownership to JKC. State Bank of India (SBI), Punjab National Bank (PNB) and JC Flowers Asset Reconstruction Private Limited had approached the court against the NCLAT decision.
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