The Jalan-Kalrock Consortium (JKC), the winning bidder for the bankrupt Jet Airways, has raised serious concerns in the Supreme Court regarding the behavior of lenders, particularly the State Bank of India. JKC’s senior lawyer, Mukul Rohatgi, informed the court that lenders are intentionally steering the airline toward liquidation to maximize profits by selling its assets as scrap.
This alarming claim was presented during a hearing before a three-judge bench led by Chief Justice of India D.Y. Chandrachud, who was addressing the lenders’ appeal against the National Company Law Appellate Tribunal’s March ruling, which upheld the handover of Jet Airways to JKC. Rohatgi argued that the lenders have shown a lack of cooperation in JKC’s efforts to revive the struggling airline, stating, “They haven’t lifted a finger to help. They want to drive this plan into the ground so that it can be sold as scrap. They feel if they sell the planes as scrap, they will get more.”
The Supreme Court had previously directed JKC to deposit ₹150 crore in cash in January as part of the resolution plan. Chief Justice Chandrachud emphasized the importance of this requirement, noting that failing to comply would indicate that JKC is not adhering to the resolution framework established for Jet Airways. “We didn’t give you an option; we direct you to pay ₹150 crore. If you don’t have it, then that means you are not compliant with the resolution,” he stated firmly.
The case highlights the complexities involved in the resolution process of financially troubled companies in India, particularly in the aviation sector, which has faced significant challenges in recent years. The fate of Jet Airways hangs in the balance as JKC seeks to revive the airline and restore its former glory, while lenders appear to have conflicting interests.
As the Supreme Court prepares to continue hearing the case on Thursday, the outcome will have significant implications not only for Jet Airways but also for the broader framework of corporate insolvency resolution in India. The court’s decision will determine whether JKC can proceed with its plans to revive the airline or if it will succumb to the pressures from the lenders seeking liquidation.
The aviation industry and stakeholders are watching closely, as the resolution of Jet Airways could set important precedents for future cases involving distressed airlines and highlight the critical need for collaboration among all parties involved in the resolution process. The developments in this case will undoubtedly have far-reaching consequences for the airline’s employees, customers, and the aviation market in India as a whole.