Jet Airways case: NCLAT dismisses Jalan-Kalrock plea on the unpaid provident fund, gratuity dues
Contents News/Article Date: 6th December 2022
Relating to which Act: The Employees Provident Funds & Miscellaneous Provisions Act, 1952; The Industrial Disputes Act, 1947; The Industrial Employment Standing Orders Act, 1946; The Contract Labour (Regulation & Abolition) Act 1970
Applicable to which State: All the establishments in the States with PF coverage
Type: Newspaper report
Pertains to: new employers of the takeover of Jet Airways and all the ex-employees covered by the Provident fund of the earlier Jet Airways
Relevance of this news: Karma Management Global Consulting Solutions Pvt. Ltd is in the business of Payroll, Outsourcing, and Regulatory Compliances since its inception in 2004 since then, has brought in a lot of efficiencies and technological upgradations with experts on its role, to ease the hassles of Payroll Processing, Temp Staffing On-boarding, Regulatory and Payroll compliances by providing customized solutions to all its elite clients.
In this instance, The National Company Law Appellate Tribunal (NCLAT) on December 6 dismissed a plea filed by Jet Airways’ new owner – Jalan-Kalrock consortium (JKC) – in the matter of unpaid provident fund and gratuity dues to the airline’s workmen and employees.
The insolvency appellate tribunal, in its order, clarified that PF and gratuity dues would have to be borne by the successful resolution applicant as per the approved plan.
Karma Global does a lot of PF work for hundreds of clients on a monthly basis handling each and every aspect of the activities involved in the management of the retirement dues of the coverable employees.
One of the well-known savings programs introduced with the help of the Indian government is the Employees’ Provident Fund or EPF. The organization was established in 1951 and is overseen by the Ministry of Labour and Employment, Government of India. The Ministry of Labour governs the EPF programs in India. Employees’ Provident Fund Organisation administers this savings plan. You may also refer to it as EPFO.
This plan attempts to help an individual accumulate a sizeable retirement fund. It instills in salaried-class workers the practice of saving money. Employer and employee contributions in the form of money are included in the fund. Each of them is required to make a monthly contribution to this fund equal to 12% of the employee’s basic pay (basic plus Dearness Allowance).
Subject: Jet Airways case: NCLAT dismisses Jalan-Kalrock plea on the unpaid provident fund, gratuity dues
For greater details, appended below is the complete news item
Jet Airways case: NCLAT dismisses Jalan-Kalrock plea on the unpaid provident fund, gratuity dues
The appellate tribunal also dismissed JKC’s plea to cap its payment liability under the resolution plan at Rs 475 crore.
The National Company Law Appellate Tribunal (NCLAT) on December 6 dismissed a plea filed by Jet Airways’ new owner – Jalan-Kalrock consortium (JKC) – in the matter of unpaid provident fund and gratuity dues to the airline’s workmen and employees.
The insolvency appellate tribunal, in its order, clarified that PF and gratuity dues would have to be borne by the successful resolution applicant as per the approved plan.
The tribunal also dismissed JKC’s plea to cap its payment liability under the resolution plan at Rs 475 crore. Earlier, JKC had sought clarity that any additional amount (over and above Rs 52 crore) payable to workmen or employees be paid out of the bank balance of Jet, from the amount reserved for other creditors.
Earlier, NCLAT had also directed the Jalan-Kalrock consortium to “compute the payments to be made to workmen and employees within one month from today” and communicate the same to the Jalan-Kalrock consortium to take steps for the payment.
The NCLAT order came over the petition challenging the orders of the Mumbai bench of the National Company Law Tribunal, which had on June 22, 2021, approved the bids of the Jalan-Kalrock consortium.
Meanwhile, from the setback, the feedback received is that after Jet Airways’ revival plans hit another roadblock in November, its employees are once again left questioning their future. Some employees said discontent in the workforce has risen.
“The belief in the current top management of Jet Airways is one of the biggest reasons employees are not aggressively looking for alternative opportunities,” an employee working with the human resource team mentioned.
Further, according to a report, lenders to Jet Airways are resisting a court-approved resolution plan, further delaying the private airline’s return to the skies,
Banks, led by State Bank of India, said Jet Airways’ new buyers — Dubai-based businessman Murari Lal Jalan and Florian Fritsch, chairman of London-based Kalrock Capital Management Ltd. — should pay an additional 2.5 billion rupees ($30.1 million) into the retirement kitty, the report stated.