An employees union of Jet Airways, the All India Jet Airways Officers and Staff Association (AIJOSA), has sent a legal notice to the airline’s resolution professional (RP), Jalan-Kalrock Consortium (JKC) and lenders to comply with the National Company Law Appellate Tribunal’s (NCLAT’s) directive on computation of provident fund (PF) and gratuity amount.
The NCLAT had, on October 21, in an order directed the airline’s new owner that the employees of Jet Airways were entitled to PF and gratuity and that the computation of payments must be done within 30 days which ended on November 21. Since that was not communicated,, the union sent a legal notice.
It has sought a response from the RP, JKC and the lenders on the measures taken by them to comply with the said order along with a warning of legal action on grounds of non-compliance.
As per the revival plan submitted by JKC, it had proposed a total infusion of ₹1,375 crore. This includes ₹900 crore towards capex and working capital and ₹475 crore to settle claims of all creditors. Of this, ₹52 crore has been set aside for the employees and workmen, the rest is saved for the lenders.
However, the NCLAT order stated that amounts to the tune of ₹250 crore were to be considered. JKC has said that it is willing to pay monies as slated in the Resolution Plan. Meanwhile, according to reports, lenders to Jet Airways were open to selling 11 planes of the defunct carrier, due to the delay with the delay in executing the resolution plan.
“It is also brought to your attention that no sale of assets of the of Jet Airways can be undertaken by the Successful Resolution Applicant or any other party until such time as the payments of PF and gratuity dues of the workers and employees are completed in accordance with the directions of the Hon’ble NCLAT in its judgment,” the legal notice sent by the union stated.
Jet Airways did not respond to businessline’s query.
Meanwhile, Jet Airways Cabin Crew Association, through its lawyer Rahul Kamerkar, has also sent a legal notice to the airline asking it to clear its members’ dues as per the approved resolution plan.
JACCA represents approximately 700 members of the cabin crew of Jet Airways.