Jet Airways staff moves NCLAT against Kalrock-Jalan resolution plan

Top Stories

»	India’s organic food exports register 35 pc jump, to cross $665 million in FY25
»	Crisil projects 6.5 pc GDP growth for India in fiscal 2026 amid US tariffs
»	India, EU must take concrete steps to remove trade barriers: Piyush Goyal
»	90-day US tariff relief will lead to more sustainable trade pacts: Experts
»	India’s exports surge to record $820 billion in 2024-25 despite global challenges

SME Times News Bureau | 19 Aug, 2021
The employees of Jet Airways have approached the National Company Law Appellate Tribunal (NCLAT) seeking quashing of the NCLT's approval to the resolution plan of Kalrock-Jalan consortium.

The appeal comes after the emloyees rejected the resolution plan.

The plea by the Bharatiya Kamgar Sena (BKS) and the Jet Airways Cabin Crew Association have cited concerns on unpaid salary dues and continuity.

In the voting process of employees, only 35.1 per cent approved the plan while 3.2 rejected it, and 61.6 per cent abstained from the voting. As such, the proposal for ex-employees and workmen of Jet Airways (India) Ltd, put forward by Murari Lal Jalan and Florian Fritsch, has lapsed, the consortium informed employees on Thursday.

The admitted claims of employees stood at Rs 1,265 crore, while the consortium has proposed Rs 52 crore to settle their claims.

According to employees, the airline owes at least Rs 3 lakh to each employee which may well go up to Rs 85 lakh, while now each employee is being offered a total of around Rs 23,000, which one employee, who did not want to be named, described as "peanuts".

The plan proposes to pay each workman of the corporate debtor Rs 11,000 cash, Rs 5,100 cash as medical expense reimbursement for the parents of the workmen, Rs 5,100 cash as school fee reimbursement for children of the staff, Rs 1,100 for stationery for children of the staff and one-time mobile phone recharge of Rs 500.

This cash payment will be made out of the contingency fund (Rs 8 crore). Additional amounts, if required, will be utilised out of the proceeds of sale of assets received by the corporate debtor.