The Supreme Court today dismissed an appeal by Jalan-Kalrock Consortium (JKC), the new owner of Jet Airways, seeking a stay on the National Company Law Appellate Tribunal’s (NCLAT) order to pay provident fund and gratuity to workers and employees.
In December, the NCLAT dismissed JKC's plea and clarified that PF and gratuity dues would have to be borne by the successful resolution applicant as per the approved plan.
The appellate tribunal also dismissed JKC's plea to cap its payment liability under the resolution plan at Rs 475 crore. Earlier, JKC had sought clarity that any additional amount over and above Rs 52 crore payable to workmen or employees be paid out of the bank balance of Jet, from the amount reserved for other creditors.
The order came over a petition challenging the orders of the Mumbai bench of the National Company Law Tribunal (NCLT) which had on June 22, 2021, approved the bids of the Jalan-Kalrock consortium and directed payment of the outstanding dues to the workers.
In a separate proceeding, the Mumbai NCLT on January 13 permitted ownership transfer to the consortium. It had allowed JKC's plea and had set November 16, 2022, as the effective date for the resolution plan.
The NCLT had ruled that the consortium had satisfied conditions necessary for the ownership transfer. It was reported on January 24 that the lenders of Jet Airways have moved the NCLAT opposing the ownership transfer to the Jalan-Kalrock Consortium.
Jet Airways was grounded in April 2019 over piling losses and debt of about Rs 8,000 crore. In October 2020, the airline's Committee of Creditors (CoC) approved the revival plan submitted by a consortium of Dubai-based entrepreneur Murari Lal Jalan and the UK's Kalrock Capital.
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