Grounded aircraft in Mumbai belonging to Jet Airways, which became the first Indian commercial airline to be admitted to bankruptcy court. AFP
Grounded aircraft in Mumbai belonging to Jet Airways, which became the first Indian commercial airline to be admitted to bankruptcy court. AFP

India's Supreme Court orders liquidation of Jet Airways



Jet Airways, once India‘s second-largest carrier, is to be liquidated, the country’s Supreme Court ruled on Thursday, ending a tumultuous five-year insolvency resolution saga for the bankrupt airline.

The Jalan-Kalrock Consortium, the winning bidder, failed to carry out its revival plan and “contravened the terms of the resolution plan,” a three-judge bench of the court said, while overturning a tribunal order for transferring ownership to the group.

Jet Airways was the first Indian commercial airline to be admitted to bankruptcy court, but a string of lawsuits delayed the revival. The airline’s lenders clashed with the consortium over its refusal to infuse funds into the carrier, a condition for the transfer of ownership.

A bankruptcy court in Mumbai will now appoint a liquidator for Jet Airways. Any funds invested by the consortium so far, will be forfeited and all bank guarantees invoked, according to the court order.

Updated: November 07, 2024, 12:51 PM