The Supreme Court (SC) on Thursday exercised its extraordinary constitutional powers and ordered the liquidation of grounded air carrier Jet Airways' assets.

A bench of Chief Justice DY Chandrachud and Justices JB Pardiwala and Manoj Misra set aside the National Company Law Appellate Tribunal (NCLAT) decision upholding the resolution plan of Jet Airways, which approved the transfer of its ownership to Jalan Kalrock Consortium (JKC).

Pronouncing the judgement for the bench, Justice Pardiwala allowed the plea of the State Bank of India (SBI) and other creditors against the NCLAT decision that upheld the resolution plan of Jet Airways in favour of JKC.

It said the liquidation of the air carrier was in the interest of creditors, workers and other stakeholders.

The bench came down on the NCLAT, which the SC held disregarded the court’s 2023 ruling.

"We have no doubt that the NCLAT acted contrary to settled legal principles... NCLAT incorrectly interpreted our order," the court noted in the judgment. The fundamental concern is not only to do substantial justice but also to bring speedy disposal of dispute, it further noted.

The court used its powers under Article 142 of the Constitution which gives it the power to make orders and decrees to ensure complete justice in any matter or cause pending before it.

The NCLAT on March 12 upheld the resolution plan of the grounded air carrier and approved the transfer of its ownership to JKC. The SBI, Punjab National Bank (PNB) and JC Flowers Asset Reconstruction Private Limited had challenged the NCLAT verdict.

Additional Solicitor General (ASG) N Venkataraman appeared for the SBI- the lead lender of Jet Airways, while Senior Advocates Mukul Rohatgi and Gopal Sankaranarayanan represented the Successful Resolution Applicant (SRA) Jalan KalRock Consortium (JKC). In the past, Jet was the second largest carrier in India.