Tribunal rejects petition by employees of debt-laden Jet Airways

Topics Jet Airways | NCLT | Airline sector

The consortium hopes to restart it as a premium full service airline in 4-6 months after receiving the NCLT’s nod.
The National Company Law Tribunal (NCLT) will not hear employees of Jet Airways before passing its order on the grounded airline’s revival plan.

It said so while rejecting employee union applications for intervention. Hearing on the resolution plan is expected to start on Tuesday. 

“Taking facts of the case at hand, and the law as it stands today into consideration, we are of the view that the applicants (employee unions) cannot be entitled to the copy of resolution plan or any portion thereof. They would also not be eligible to be heard or intervene in the process of consideration of the resolution plan by this authority. The payments as to their wages, gratuity and other terminal benefits shall be in accordance with the law and in terms of the resolution plan guided by the provisions under the code,” Janab Mohammed Ajmal (member judicial) and V Nallasenapathy (member technical) said in their order.

A committee of creditors had, in October, approved of the resolution plan submitted by UAE businessman Murari Lal Jalan and Kalrock Capital.  

The consortium hopes to restart it as a premium full service airline in 4-6 months after receiving the NCLT’s nod.

Unions representing pilots, engineers, ground staff, and cabin crew had moved NCLT seeking a copy of the plan, and for intervention. 

The unions argued that natural justice demands that employees remain aware of the plan and how it takes care of their interests or adversely impacts them.  

The resolution professional submitted that the resolution plan was a confidential document that could be shared only with the committee of creditors. 

Given that employee unions are not part of the committee, they are not entitled to its copy. 

“We had prayed that at least a portion of the resolution plan concerning employees should be shared with us. However, that has not been accepted. We will review the order and decide on further course of action,” said advocate Rahul Oak, who appeared for the Bharatiya Kamgar Sena and Jet Airways Cabin Crew Association.

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