The Kalrock Capital-Murari Lal Jalan consortium is likely to lodge a Supreme Court appeal against a December 6, 2022, decision by India's National Company Law Appellate Tribunal (NCLAT) directing it to settle unpaid provident fund and gratuity dues of employees of Jet Airways (Mumbai International), according to local news reports.
The NCLAT also dismissed an appeal by the consortium known as Jalan-Kalrock (JKC) - which won the bid to revive Jet Airways - to cap its payment liability to employees at INR4.7 billion rupees (USD57.5 million) under the resolution plan for the airline's sale.
JKC has become the new owner of Jet Airways, which stopped operating in early 2019, through an insolvency resolution process and is preparing to relaunch the airline. The consortium comprises Dubai-based businessman Murari Lal Jalan and Florian Fritsch, chairman of London-based Kalrock Capital Management Ltd.
It applied to the NCLAT to clarify a judgement delivered by the Tribunal on October 21, 2022, regarding the unpaid provident fund payments and gratuities for workers under the resolution plan. It asked the NCLAT to clarify if any additional amount - over and above INR520 million (USD6.3 million) - payable to workers should first be paid from Jet Airways' bank account and the remaining amounts paid on a pro-rata basis from amounts set aside for other creditors.
The NCLAT clarified that JKC would be responsible for unpaid provident fund payments and gratuities per the authorised plan for the airline's sale. It instructed that payments to employees be made within one month from December 2, 2022, reported Mint.
Also, on December 6, the Jet Airways Cabin Crew Association (JACCA) filed an application before the Mumbai bench of the NCLAT seeking the liquidation of Jet Airways' assets, claiming a contravention of the resolution plan. Any further delay in the liquidation process, the association said, would further reduce the value of the assets of the debt-laden airline.
JACCA represents about 700 cabin crew members of Jet Airways, who are fighting to secure INR1.1 billion (USD13.7 million) of unpaid wages. The union claimed the amount was to be paid within 175-180 days of the date the court-approved resolution plan became effective.
Meanwhile, banks led by the State Bank of India want JKC to pay an additional INR2.5 billion (USD30.1 million) into the retirement kitty, according to email exchanges seen by Bloomberg. It reported the new owners have indicated that extra money wasn't part of the already agreed-upon resolution plan and must be taken out of the banks' dues.
