CRASH LANDING

The Supreme Court's order to liquidate Jet Airways, after prolonged insolvency proceedings, brings the focus back on the actual effectiveness of IBC

- RICHA SHARMA

FIVE GRUELLING YEARS of trials and tribulations are what it took for Jet Airways' fate to be decided. The once-leading airline, which had filed for bankruptcy in 2019, got a final resolution on November 7, when the Supreme Court ordered its liquidation. But the apex court's order points fingers at the credentials of the Insolvency and Bankruptcy Code (IBC), a comprehensive law that governs insolvency and bankruptcy proceedings in the country.

The liquidation order set aside the National Company Law Appellate Tribunal's (NCLAT) order for the transfer of the cash-strapped airline's ownership to the Jalan-Kalrock Consortium (JKC) as it failed to make even the full first tranche payment of ₹350 crore as directed by the apex court.

What went wrong in an insolvency case of this scale, involving over ₹7,800 crore of creditors' money? Experts point at some loopholes in the IBC.

Vivek Parti, an insolvency professional, said the insolvency law has limitations. It does not deal with terms of implementation of an approved plan.