The Jalan-Kalrock consortium, the new owner of Jet Airways, was ordered by the insolvency appellate tribunal NCLAT on Friday to fulfil the unpaid gratuity and provident fund obligations of the airline’s workers before it can resume operations.
The former resolution specialist has been instructed to "calculate the payments to be made to workmen and employees within one month from today" and communicate the results to the Jalan-Kalrock consortium so that they can take the necessary actions to make the payments.
A two-member NCLAT bench had instructed the new owner to pay provident fund dues as acknowledged by the resolution professional after granting a batch of petitions submitted by the associations of workers, Aircraft Maintenance Engineers, Officers and Staff Association, and others.
After subtracting the amount already paid toward the provident fund in the Resolution Plan to the workmen, the NCLAT directed the successful resolution applicant to pay the unpaid provident fund to the workers up to the date of insolvency start.
The NCLAT further ruled that, after deducting any amounts for gratuities provided under the resolution plan, the workers are also entitled to payment of their outstanding gratuities as of the insolvency commencement date.
Jet Airways (India) workers and employees have filed five appeals, and operational creditors have filed three.
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