NCLAT dismisses Jalan-Kalrock plea on unpaid PF and gratuity dues
It was in response to the petition challenging the order of the Mumbai bench of NCLT, which had approved JKC’s bids
NCLAT dismisses Jalan-Kalrock plea on unpaid PF and gratuity dues
It was in response to the petition challenging the order of the Mumbai bench of NCLT, which had approved JKC's bids
The National Company Law Appellate Tribunal (NCLAT) has dismissed a plea filed by the Jalan-Kalrock Consortium (JKC), the new owner of Jet Airways regarding unpaid provident fund (PF) and gratuity dues to the workmen and employees.
In its order, the tribunal clarified that PF and gratuity dues would have to be borne by the successful resolution applicant as per the approved plan. It dismissed JKC's plea to cap its payment liability under the resolution plan at Rs.475 crore.
JKC had earlier sought clarity that any additional amount (over and above Rs.52 crore) payable to the employees should be paid from the balance amount of Jet, reserved for other creditors.
NCLAT had directed the JKC to, "compute the payments to be made to workmen and employees within a month." It was told to communicate the same to JKC to take further steps.
The tribunal's order came in response to the petition challenging the orders of the Mumbai bench of the National Company Law Tribunal (NCLT), which, in June 2021, approved JKC's bids.
It is believed that Jet Airways' current top management is one of the reasons that employees were not looking for alternative opportunities. On the other hand, Jet Airways lenders are resisting a court-approved resolution plan, further delaying the private airline's return.
Meanwhile, the banks, led by the State Bank of India and the new buyers, Dubai-based businessman Murari Lal Jalan and Florian Fritsch, the chairman of the London-based Kalrock Capital Management Ltd, need to pay an additional 2.5 billion rupees ($30.1 million) into the retirement pool.