Mint Quick Edit Jet Airways’ failed take-off: An IBC let-down

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Subscribe to enjoy similar stories. Revival hopes for Jet Airways received a mortal blow on Thursday as the Supreme Court ordered its liquidation.

Since the non-operational airline’s acquisition bid-winner Jalan Kalrock Consortium had failed to infuse ₹350 crore as an initial tranche and meet other obligations under a resolution plan, the apex court said it was left with “no choice but to send Jet Airways into liquidation". It overturned a decision of the National Company Law Appellate Tribunal to uphold an order for its ownership transfer to the consortium and held it at fault for letting a ₹150 crore performance bank guarantee be adjusted against the ₹350 crore infusion.

The airline, grounded since 2019, has witnessed twists and turns over its status. The consortium alleged that its lenders who took charge after pushing it into insolvency were not turning its ownership over, while the banks said the acquirer needed to infuse funds as required by the plan.

Meanwhile, those whose dues had to be paid were kept waiting. That confusion prevailed for so long reflects poorly on India’s bankruptcy process.

Quick rescues were a key aim of the new code enacted in 2016. This case has been a high-profile let-down.