Bristol: Recently, Supreme Court ordered the liquidation of Jet Airways, after finding that NCLAT had disregarded its January 2023 judgment by allowing the adjustment of a ₹150 cr performance bank guarantee (PBG) against the ₹350 cr infusion requirement from the Jalan-Kalrock Consortium (JKC), the airline’s resolution applicant.
The top court’s decision could affect creditors, including major banks, potentially leaving them with shortfalls as the remaining asset value is unlikely to fully cover the debt. This is disappointing after 5-yr-long efforts to revive Jet and recover funds, which included approved resolutions and failed payment agreements.
NCLAT is not without blame, as it ignored the top court’s order. Its decision was…
