On November 7, the Supreme Court officially ordered Jet Airways to undergo liquidation, ending efforts to resurrect the once-iconic airline. The verdict came after the Jalan Kalrock Consortium (JKC), the successful bidder in Jet’s insolvency resolution process, failed to meet essential financial commitments outlined in the 2021 revival plan.

Grounded since 2019 due to severe financial distress, Jet Airways had pinned hopes on JKC’s ability to turn it around. However, JKC’s missed obligations—including a required Rs 350 crore capital infusion and Rs 226 crore in unpaid salaries—cast doubt on the feasibility of the revival. This failure to fund key elements of the revival prompted the court to intervene.

The Supreme Court’s ruling overturned a prior National Company Law Appellate Tribunal (NCLAT) decision, which had allowed JKC to gain control of Jet Airways despite incomplete payments. Justice Pardiwala emphasized the importance of strict adherence to the Insolvency and Bankruptcy Code (IBC), noting the procedural insights gained from this prolonged legal battle.

JKC’s move to offset its Rs 150 crore Performance Bank Guarantee (PBG) against payment requirements was particularly criticized by the court, which deemed it a violation of IBC principles.

After nearly five years without progress, the court instructed the National Company Law Tribunal (NCLT) in Mumbai to appoint a liquidator. The Rs 200 crore already invested by JKC will be forfeited, and lenders, led by the State Bank of India (SBI), are authorized to invoke the Rs 150 crore PBG to recover part of their dues.

Lenders argued that JKC, despite winning the bid, had not fulfilled core funding requirements or secured regulatory approvals. JKC attributed delays to lender actions and regulatory processes, though the court ultimately found these arguments inadequate.

This ruling effectively marks the end of Jet Airways’ revival efforts and underscores the Supreme Court’s commitment to enforcing the IBC, holding bidders accountable in insolvency cases. The decision also signals regulatory hurdles in India’s aviation sector, as Jet Airways becomes the second airline after GoFirst to be liquidated under the IBC.