Former employees’ gratuity requests to the labor commissioner will not affect the airline: Jet
NEW DELHI : Jet Airways (India) Ltd said on Tuesday that the issue of some former airline employees seeking to recoup the gratuities claimed before the labor commissioner will have no impact on the airline.
The carrier said all previous claims and assessments not provided for in the resolution plan were extinguished and, therefore, no new liability or claims from the airline were anticipated.
The airline’s oversight committee made submissions to the labor commissioner indicating that all employee and worker claims, including gratuity claims, were admitted as part of the resolution plan, the airline said. in a stock market notification and added that these claims will be settled as part of the resolution plan in accordance with the provisions of the Insolvency and Bankruptcy Code.
“In view of what is said above, we specify that no negotiations took place on the matter …”, he added.
The labor commissioner is due to hear the employees on October 8.
Jet Airways has been grounded since April 2019 due to lack of funds. An insolvency plea against Jet Airways was admitted by the National Company Law Tribunal (NCLT) in June 2019. Subsequently, the Mumbai Bankruptcy Court chamber approved an insolvency resolution plan submitted by the British Kalrock Capital and Dubai-based entrepreneur Murari Lal Jalan in June. 2021, which proposed to reimburse ??1,183 crore to Jet’s creditors over five years.
However, since then, Jet Airways employee associations, which have raised concerns about pending wages and pension benefits as part of the resolution plan, have appealed to the National Appeals Tribunal in Canada. corporate law (NCLAT), which agreed to hear the complaints.
Likewise, the Punjab National Bank (PNB), one of Jet Airways’ lenders and which had previously approved the resolution plan, challenged it before NCLAT, posing a new hurdle to revive the carrier.
“Various associations of employees and workers have independently approached NCLAT, opposing the approval of the resolution plan by the NCLT,” the airline said in the stock market notice on Tuesday.
“These appeals remain pending and NCLAT has not issued any interim order on these grounds,” he added.
The unions of Jet Airways employees have also called for the intervention of the Minister of Civil Aviation Jyotiraditya Scindia to resolve the employment problems under the new owners.
The latest legal challenges and the inability of the Jalan-Kalrock consortium to automatically reclaim airport slots at busy airports in Delhi and Mumbai could delay the airline’s resumption of operations.
As it stands, the new owners of Jet Airways, a consortium of UK-based Kalrock Capital and UAE-based entrepreneur Murari Lal Jalan, hope to resume domestic operations by the March period. -May 2022 and build a fleet of more than 50 aircraft in three years.
However, the new promoters have pushed back dates for the resumption of airline services on several occasions so far.
The airline’s revival could be further extended by further litigation, aside from challenges of securing slots at the country’s busiest airports, New Delhi and Mumbai.
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