highest Using its special constitutional powers, the court on Thursday ordered the sale of the assets of defunct airline Jet Airways. Chief Justice D.Y. Chandrachud and Justice J. B. A bench of Justices 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).
NCLT reprimanded
Delivering the verdict on behalf of the bench, Justice Pardiwala accepted the plea of SBI and other lenders against the NCLAT decision. The petition opposes the decision to uphold the resolution plan of Jet Airways in favor of JKC. The Court said that liquidation of the airline is in the interest of creditors, workers and other stakeholders. In the process of liquidation the debts are paid off from the money received by selling the company's assets. The bench also reprimanded NCLAT for its decision.
used special powers
The top 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 case pending before it. NCLAT had on March 12 upheld the resolution plan of the defunct airline and approved the transfer of its ownership to JKC. State Bank of India (SBI), Punjab National Bank (PNB) and JC Flowers Asset Reconstruction Pvt Ltd had moved the court against the NCLAT decision.
Image Credit: India-Tv.