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Jet Airways staff dues: Jalan Kalrock consortium to move SC against NCLAT order

et Airways collapsed in 2019 under a lot of debt after years as India’s top private airline. Premium
et Airways collapsed in 2019 under a lot of debt after years as India’s top private airline.

  • Jalan-Kalrock had won the bid through an insolvency resolution process for Jet Airways, which had stopped operations in early 2019 due to severe fund crunch. The airline is now preparing to restart services

MUMBAI: The Jalan Kalrock consortium, new owner of the beleaguered Jet Airways, is likely to move the Supreme Court against a recent National Company Law Appellate Tribunal (NCLAT) order which has directed the airline to pay unpaid provident fund and gratuity dues of employees of the carrier, which is preparing to restart operations.

The NCLAT also dismissed the consortium’s plea to cap its payment liability at 475 crore under the approved resolution plan.

The appellate tribunal had earlier instructed the new owner to pay unpaid provident fund dues as admitted by the resolution professional after allowing a slew of petitions submitted by the association of workers, Aircraft Maintenance Engineers, Officers and Staff Association, and others.

Jalan-Kalrock had won the bid through an insolvency resolution process for Jet Airways, which had stopped operations in early 2019 due to severe fund crunch. The airline is now preparing to restart services. 

The court has asked the former resolution professional to compute the payments to be given to the workmen and the employees within one month from 2 December, while also communicating the same to the consortium for the required payment of dues.

The Jet Airways Cabin Crew Association (JACCA) filed a liquidation application before the Mumbai bench of the National Company Law Tribunal (NCLT) on Tuesday seeking liquidation of Jet Airways’ assets on the grounds that there has been a contravention of the resolution plan. Any further delay in the liquidation process, the association said, will further reduce the value of the assets of the debt-laden airline.

The counsel representing the association said there has been a clear contravention of the resolution plan by the successful resolution applicant.

According to the plan, the successful resolution applicant had to pay 52 crore in 175 days from the effective date of 20 May. An additional 61 crore was also supposed to be paid. However, 200 days have gone by, and a total amount of 113 crore is yet to be paid.

In this regard, the NCLAT in its order said that over and above the provident fund and gratuity, the entire dues of of 113 crore as mentioned in form H (draft plan) has to be paid to the workmen.

ABOUT THE AUTHOR

Priyanka Gawande

Priyanka Gawande is a senior legal correspondent at Mint. She has worked as legal reporter for four years with both television and digital mediums. Based in Mumbai, she reports on disputes across sectors including banking, corporates and finance. This also includes insolvency and bankruptcy cases and intellectual property rights (IPR) litigation. Her focus also comprises tracking capital markets and disputes relating to securities law. Previously, Priyanka worked with Informist Media for 2.5 years covering major insolvency and bankruptcy cases and corporate developments. She started her career in journalism with Business Television India (BTVi) where she reported on primary markets, banking, finance and insurance companies.
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