December 19 – Mumbai – A union of maintenance engineers of Jet Airways has filed a petition in the Supreme Court against the airline’s resolution plan, claiming that the plan ignores workers’ rights, and the debt-laden company The liquidation value continues to decrease.
The petition, filed by the Jet Aircraft Maintenance Engineers Welfare Association (JAMEWA), said, “The timelines for making payments under the provisions of the Code have not been adhered to.”
JAMEWA is a registered association of Aircraft Maintenance Engineers of Jet Airways. Mint has seen a copy of the petition.
The National Company Law Tribunal (NCLT) approved the Jalan Kalrock consortium’s resolution plan for Jet Airways in June 2021 to rescue the airline. The consortium had clarified to the NCLT that it has no plans to hire existing experienced employees who have been waiting for more than three-and-a-half years for the company to revive.
“Neither they are giving us retrenchment allowance, nor gratuity for service up to 25 years. This is in blatant disregard of the laws of the country. The scheme only benefits the potential buyers. Employees will be transferred to Airjet along with their dues. being done.” Ground Services Limited (AGSL), a subsidiary company which exists only on paper, is non-existent and has no assets,” said a person aware of the litigation. The consortium has reserved the right to liquidate it at will In this case the arrears of the employees will be automatically cleared. The person cited above said, “If the resolution plan continues, a bad precedent will be set in the country. The plan should be set aside.”
“Anyway, the SRA (successful resolution applicant Jalan Kalrock Consortium) has failed to pay the employees as per the approved resolution plan on their payment deadline of November 2022, hence, the SC appeals,” the person said.
“The National Company Law Appellate Tribunal (NCLAT) on October 21 ordered the resolution monitoring committee of Jet Airways to calculate the dues of workmen and employees within a month and inform the Jalan-Kalrock consortium. The total dues to be around INR250 crore, but the order has not been complied with,” the petition said.
“The order of the NCLAT has amply clarified that the Consortium is liable to pay the outstanding Provident Fund and Gratuity dues to the workmen and employees. Companies Act. However, it is to be noted that the Consortium against the said order of the NCLAT has recourse to law. They have time till January 1, 2023, to pay workers and employees. Meanwhile, the consortium has approached the Supreme Court to get at least a temporary stay on its obligations to pay In fact, this will delay the recovery of dues of workmen and employees, which are already in limbo for a long time”, said Kundan Shahi, Co-Founder & CEO, Legalpay.
Separately, Akhil Bhartiya Kamgar Sena on Thursday moved NCLAT seeking clarity on payment of PF and gratuity dues of October 21 to NCLAT employees who have either retired or resigned after the insolvency commencement date Huh.
About the Author
Priyanka Gawande is senior legal correspondent at Mint. He has worked as a legal reporter for four years with both television and digital mediums. Based in Mumbai, she reports on controversies in sectors including banking, corporates and finance. It also includes insolvency and bankruptcy cases and Intellectual Property Rights (IPR) litigation. His focus also includes tracking capital markets and controversies related to securities laws. Prior to this, Priyanka worked with Informist Media for 2.5 years, covering large insolvency and bankruptcy matters and corporate development. He started his career in journalism with Business Television India (BTVi), where he reported on primary markets, banking, finance and insurance companies.
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