Jet Airways staff object to cos resolution plan before NCLAT
MUMBAI: All India Jet Airways’ Officers and Staff Association on Thursday said it has filed an appeal before the National Company Law Appellate (NCLAT) against Jalan-Kalrock consortium’s resolution plan for the airline.
In October 2020, the airline’s committee of creditors approved the resolution plan submitted by the consortium of the UK’s Kalrock Capital and the UAE-based entrepreneur Murari Lal Jalan. The plan was later cleared by the Mumbai bench of the National Company Law Tribunal (NCLT).
Last week, Jet Airways’ air operator certificate was revalidated by the Directorate General of Civil Aviation, paving the way for the relaunch of the airline, which was grounded in April 2019 because of financial concerns.
“The resolution plan is contingent on many hypotheticals about the use of crucial assets of the former Jet Airways, including its property, flight slots, and most importantly, its workers and employees,” said All India Jet Airways’ Officers and Staff Association president Kiran Pawaskar.
In its petition before the NCLAT, the association has prayed for complete payments of gratuity, unpaid wages, privilege leave encashment, bonus from April 2018 to June 2019 and retrenchment compensation to all workers and employees, the statement said.
Among others, the association has demanded that any employee re-hired by the resolution applicant or the Monitoring Committee are paid their gratuity, unpaid wages, privilege leave encashment, bonus and retrenchment compensation as per entitlements and that any signed document for the waiver/ forfeiture of these amounts not be enforced against them. The airline, which is expected to restart services soon, is managed by a monitoring committee.
Narayan Hariharan, former senior vice president of Jet Airways and legal advisor to employees, said the resolution plan is “precariously held together by a vague business plan”.
The airline is forcing workers to waive the statutory rights they are owed, particularly gratuity, privilege leave, unpaid salary and bonus, the association claimed.
The airline was earlier owned by Naresh Goyal and Gulf carrier Etihad. Bogged down by financial woes, it shuttered operations in April 2019.