India's top court orders liquidation of bankrupt Jet Airways

Jet Airways, once India's second-biggest carrier, is to be liquidated, the country's Supreme Court ruled Thursday, ending a tumultuous five-year insolvency resolution saga for the bankrupt airline.

The Jalan-Kalrock Consortium, the winning bidder, failed to implement its revival plan and "contravened the terms of the resolution plan," a three-judge bench of the court said, while overturning a tribunal order for transferring ownership to the group.

Jet Airways was the first Indian commercial airline to be admitted to bankruptcy court, but a string of lawsuits delayed the revival. The airline's lenders clashed with the consortium over its refusal to infuse funds into the carrier, a condition for the transfer of ownership.

A bankruptcy court in Mumbai will now appoint a liquidator for Jet Airways. Any funds invested by the consortium so far, will be forfeited and all bank guarantees invoked, according to the court order.