The Supreme Court has reserved its judgment in the ongoing legal dispute between the Jalan Kalrock Consortium (JKC) and a group of Jet Airways' former lenders, led by the State Bank of India (SBI), over the airline's ownership.

A bench consisting of Chief Justice of India (CJI) DY Chandrachud and Justices JB Pardiwala and Manoj Misra heard extensive arguments from Senior Advocate Gopal Sankaranarayanan, representing JKC, and Additional Solicitor General (ASG) N Venkataraman, appearing for the lenders.

The lenders approached the Supreme Court challenging an order of the National Company Law Appellate Tribunal (NCLAT), which had upheld the transfer of Jet Airways' ownership to JKC under the Corporate Insolvency Resolution Process (CIRP). The dispute over ownership has dragged on for over a year, with JKC alleging that the lenders have delayed the transfer process, while the lenders argue that JKC has not fulfilled its financial obligations.

Jet Airways, grounded in 2019 due to financial troubles, entered insolvency proceedings initiated by SBI before the National Company Law Tribunal (NCLT). In 2021, JKC emerged as the successful resolution applicant to revive the airline, but the ownership transfer has been mired in legal challenges. While the NCLT allowed JKC to take over in January 2023, the lenders appealed to the NCLAT, which in March upheld the transfer and set a 90-day deadline for its completion.

Sankaranarayanan argued that the NCLAT had addressed all relevant issues, and no substantial legal questions were raised by the lenders. He also criticized the lenders' prolonged litigation, attributing Jet Airways' growing liabilities, including airport dues, to their delays.

ASG Venkataraman, on behalf of the lenders, contended that JKC has shown no intent to implement the resolution plan and that the creditors, including over 30 banks, would be burdened with airport dues amounting to ₹1,100 crore. He urged the Supreme Court to exercise its powers under Article 142 of the Constitution to liquidate Jet Airways, asserting that the resolution plan had failed.

Venkataraman clarified that the government is not intent on shutting down the airline but has no other option given the circumstances. He noted that lenders have been spending over ₹20 crore a month on the case, totaling more than ₹300 crore.

The Court will now decide the future course of action in the case.