Home / Companies / News /  Jet says gratuity claims before labour commissioner will not impact airline
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NEW DELHI : Jet Airways (India) Ltd on Tuesday said the issue of certain ex-employees of the airline seeking recovery of gratuity dues claimed before the labour commissioner will have no impact on the airline.

The carrier said that all past claims and dues not provided for under the resolution plan stand extinguished, and accordingly, no new liabilities or claims on the airline are foreseen.

The monitoring committee of the airline has made submissions before the labour commissioner stating that all claims of the employees and workmen, including claims of gratuity dues, have been admitted under the resolution plan, the airline said in a stock exchange notification and added that these claims will be settled as part of the resolution plan in accordance with the provisions of the Insolvency and Bankruptcy Code.

"In view of what is stated above, we clarify that no negotiation was taking place in the matter..," it added.

The labour commissioner is scheduled to hear the employees on 8 October.

Jet Airways has been grounded since April 2019 due to the lack of funds. An insolvency plea against Jet Airways was admitted by the NCLT (National Company Law Tribunal) in June 2019. Subsequently, the Mumbai bench of the bankruptcy court approved an insolvency resolution plan submitted by UK’s Kalrock Capital and Dubai-based entrepreneur Murari Lal Jalan in June 2021, which proposed to repay 1,183 crore to Jet’s creditors over five years.

However, since then Jet Airways employee associations, who flagged concerns about pending pay and retirement benefits under the resolution plan, have appealed to the National Company Law Appellate Tribunal (NCLAT), which has agreed to hear the claims.

Similarly, Punjab National Bank (PNB), one of the lenders of Jet Airways and which had earlier approved the resolution plan, has challenged it at the NCLAT posing a fresh hurdle to revive the carrier.

"Various associations of employees and workmen have independently approached the NCLAT, opposing the approval of the resolution plan by the NCLT," the airline said in the stock exchange notification on Tuesday.

"These appeals remain pending, and the NCLAT has not passed any interim orders on these grounds," it added.

Employee unions of Jet Airways have also sought intervention from civil aviation minister Jyotiraditya Scindia to resolve employment issues under the new owners.

The latest legal challenges and the Jalan-Kalrock consortium’s inability to automatically reclaim airport slots in the busy airports of Delhi and Mumbai could delay a resumption of the airline’s operations.

As things stand, Jet Airways' new owners, a consortium of UK-based Kalrock Capital and UAE-based entrepreneur Murari Lal Jalan, hopes to resume domestic operations by March-May 2022 period, and achieve a fleet of more than 50 planes in three years.

However, the new promoters have deferred the dates for the resumption of services of the airline several times so far.

The revival of the airline could get further prolonged by fresh litigation, apart from challenges in procuring slots at the country’s busiest airports of New Delhi and Mumbai.

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