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Supreme Court of India has used its powers under Article 142 to order the liquidation of Jet Airways, which has been struggling with huge debts and financial issues
The liquidation is seen as a last resort after the airline's efforts to resolve its financial troubles through a resolution plan failed.
The court stressed the importance of time to ensure that the airline’s assets do not lose further value.
Article 142
Article 142 gives the Supreme Court of India extraordinary powers to do "complete justice" in any case.
It allows the Court to pass orders or directions that are not strictly covered by law but are necessary to meet the ends of justice.
Insolvency and Bankruptcy Code (IBC) of 2016
The IBC, 2016 is the bankruptcy law of India that consolidates and amends the existing laws relating to insolvency and bankruptcy of corporate persons, partnership firms, and individuals.
The IBC aims to provide a time-bound and creditor-driven process for insolvency resolution and to improve the credit culture and business environment in the country.
IBC resolves claims involving insolvent companies. This intended to tackle the bad loan problems that were affecting the banking system
The Insolvency and Bankruptcy Board of India (IBBI) was established under the Insolvency and Bankruptcy Code, 2016.
It is a statutory body, responsible for making and implementing rules and regulations for insolvency and bankruptcy resolution
The IBBI has 10 members, representing the Ministry of Finance, the Ministry of Corporate Affairs,and the Reserve Bank of India.
Adjudicating Authority:
National Company Law Tribunal (NCLT) has jurisdiction over companies, other limited liability entities.
Debt Recovery Tribunal (DRT) has jurisdiction over individuals and partnership firms other than Limited Liability Partnerships
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