Key Points
New Delhi: The Supreme Court on Wednesday asked the Jalan-Kalrock consortium, the new owners of cash-strapped Jet Airways, how much have they paid towards dues on account of provident fund and gratuity to the former employees of the troubled airline..
"Tell us, how much you have paid to the workmen (of Jet Airways) towards the provident fund and gratuity dues," a bench comprising Chief Justice D Y Chandrachud and Justices J B Pardiwala and Manoj Misra asked senior advocate Mukul Rohatgi, appearing for the consortium whose resolution plan to take over the ailing firm was approved...
The resolution plan transferred salary, PF and gratuity dues of 3,400 employees for the period after insolvency commencement date (ICD) to a wholly owned subsidiary of Jet Airways, AGSL, the plea said...
The NCLAT held the employees were entitled to payment of the entire provident fund and gratuity dues only till the ICD as these dues did not form part of the liquidation estate of the corporate debtor, the workmen's plea said.. "However, the provident fund and gratuity dues of the workmen and employees during the Corporate Insolvency Resolution Process (CIRP) were not allowed," it said...
"Employees shall also be entitled to the gratuity, which fell due up to the insolvency commencement date," the NCLAT had said, adding "The employees are also entitled to the payment of their full provident fund, unpaid up to the date of insolvency commencement."..
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