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Business News/ Companies / News/  NCLAT directs Jet Airways to clear unpaid provident fund, gratuity dues
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NCLAT directs Jet Airways to clear unpaid provident fund, gratuity dues

A two-member NCLAT bench had asked the new owner to make payment of provident fund dues as admitted by the resolution professional

FILE PHOTO: Jet Airways aircrafts are seen parked at the Chhatrapati Shivaji Maharaj International Airport in Mumbai, India, April 18, 2019. REUTERS/Francis Mascarenhas/File Photo/File PhotoPremium
FILE PHOTO: Jet Airways aircrafts are seen parked at the Chhatrapati Shivaji Maharaj International Airport in Mumbai, India, April 18, 2019. REUTERS/Francis Mascarenhas/File Photo/File Photo

Appellate tribunal NCLAT on Friday directed Jet Airways owner Jalan-Kalrock consortium to clear the unpaid provident fund and gratuity dues of employees.

Jet Airways is on its way to restart operations.

NCLAT has directed the former resolution professional to "compute the payments to be made to workmen and employees within one month from today" and communicate the same to the Jalan-Kalrock consortium to take steps for the payment.

A two-member NCLAT bench had asked the new owner to make payment of provident fund dues as admitted by the resolution professional.

"Successful Resolution Applicant is directed to make payment of unpaid provident fund to the workmen till the date of insolvency commencement, after deducting the amount already paid towards the provident fund in the Resolution Plan to the workmen," said the NCLAT.

The NCLAT also cleared that the workmen are also entitled to payment of their gratuity dues as on the insolvency commencement date, after adjusting any amount towards gratuity paid under the resolution plan.

"Employees shall also be entitled to the gratuity, which fell due up to insolvency commencement date," said the National Company Law Appellate Tribunal (NCLAT).

However, the tribunal said that the entitlement of those employees and workmen, who were demerged into AGSL (Airways subsidiary Airjet Ground Services Ltd), a subsidiary of Jet Airways shall not be there, since the demerger has not been treated as a termination of their services.

"The employees are also entitled to the payment of their full provident fund, unpaid up to the date of the insolvency commencement date," said the 143-page-long NCLAT order.

The order also said, "It is made clear that full payment of provident fund would be of that unpaid part of provident fund, which has not been deposited by the Corporate Debtor in the EPFO".

However, the appellate tribunal denied other prayers by the workmen and employees of Jet Airways.

The NCLAT order came over the petition challenging the orders of the Mumbai bench of the National Company Law Tribunal, which had on June 22, 2021, approved the bids of the Jalan-Kalrock consortium.

Five appeals have been filed by workmen and employees of Jet Airways (India) and three by operational creditors.

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Published: 21 Oct 2022, 06:49 PM IST
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