The Supreme Court of India has ordered the liquidation of Jet Airways, ending any hopes of bringing back the once-prominent Indian airline.
Chief Justice D.Y. Chandrachud of India led a three-judge panel that delivered the ruling on November 7, 2024. The decision had been pending since October 16, 2024, as reported by the National Herald.
In March 2024, the National Company Law Appellate Tribunal (NCLAT) allowed ownership of Jet Airways to be transferred to the Jalan-Kalrock Consortium (JKC), following NCLAT approval of a five-year resolution plan in 2021. The plan outlined that the consortium intended to restart the airline’s operations in 2024.
However, the court determined that JKC had not fulfilled its financial responsibilities in the resolution plan. The Supreme Court noted that JKC did not pay Rs150 crore (approximately $1.77 million), which was part of the total Rs350 crore (approximately $4.15 million) needed to settle airport debts and other essential expenses for workers. Additionally, the consortium faced challenges in achieving important goals, such as obtaining an air operator’s certificate because it lacked enough aircraft in its fleet.
There were also requests from the State Bank of India (SBI) and other lenders, which claimed that the group had not met the financial obligations. Senior lawyer Harish Salve, speaking for the lenders, urged for the airline to be shut down.
“This litigation is an eye-opener and has taught us many lessons,” said Justice Pardiwala.
Meanwhile, JKC responded to the claims, stating that the consortium had put in more than Rs700 crore (approximately $8.30 million) to help revive the airline. The consortium also mentioned delays from lenders and regulatory issues, but the court deemed these reasons inadequate.
In 2023, India’s national company law tribunal approved the transfer of Jet Airways’ ownership to a group led by UK-based Kalrock Capital and UAE businessman Murari Jalan. This move aimed to bring back the airline, which used to be the largest private carrier in India. Jet Airways ceased all operations and has been inactive since 2019.