Jalan-Kalrock consortium looks to move SC over Jet Airways staffers' dues

The Jalan-Kalrock consortium is planning to move the Supreme Court against the National Company Law Appellate Tribunal’s (NCLAT’s) order that it must clear the unpaid provident fund and gratuity dues of Jet Airways employees, a source aware of the development said. The consortium declined to comment on the issue.

The consortium won the bid to revive the grounded airline in October 2020, and its revival plan was cleared by the National Company Law Tribunal in June 2021. But the plan is in turbulence over the payment of estimated Rs 200-crore PF and gratuity dues that arose from an earlier appellate tribunal order. Banks are unwilling to share the burden of this added liability.

On October 21 the NCLAT directed the consortium to pay gratuity and provident fund to the grounded airline’s employees until the date of insolvency commencement in June 2019.

 The consortium filed an application seeking clarification of the October 21 order. In its December 2 order, the NCLAT said the “direction to pay the unpaid amount of PF and gratuity to the workmen and  employees was not covered in the said (resolution) plan and has to be  borne by the successful resolution applicant as per the judgment.”

 According to the revival plan, the consortium proposed a total infusion of Rs 1,375 crore. This includes Rs 900 crore towards capex and working capital and Rs 475 crore to settle claims of all creditors. The approved plan has a clause that states that the amount infused by the consortium for the settlement of claims of all stakeholders would be limited to Rs 475 crore.

 Meanwhile, The NCLT’s Mumbai’s Bench will hear next Monday a liquidation application and the consortium’s rebuttal to lenders’ application opposing the handover of the airline.

 “All conditions precedent have been met and we are ready to make the payment of the first tranche to creditors,” the consortium submitted before the NCLT.