Pay PF, gratuity to ex-workmen, employees of Jet Airways, SC tells consortium
The Hindu
Apex court dismisses appeal by Jalan Fritsch Consortium, the successful resolution applicant of Jet Airways, against a National Company Law Appellate Tribunal direction
The Supreme Court on Monday dismissed an appeal by Jalan Fritsch Consortium, the successful resolution applicant of Jet Airways Limited, against a National Company Law Appellate Tribunal (NCLAT) direction to pay provident fund and gratuity to former workmen and employees of the airline.
A three-judge Bench led by Chief Justice of India D.Y. Chandrachud was not moved by the resolution applicant’s submission that they would have to add another ₹200 crore to make the payment, and this would create a dent in their efforts to revive the cash-strapped airline. The consortium had claimed that the information memorandum provided to it did not disclose any liabilities of Jet Airways towards the provident fund and gratuity.
“Anyone stepping in would know that there are overriding labour dues. Unpaid labour dues always take precedence. Somewhere, there has to be finality. Sorry, we will not interfere,” the apex court observed.
A group of 270 former employees of the airline, represented through the Association of Aggrieved Workmen of Jet Airways (AAWJA), have been fighting for their payment dues.
The NCLAT’s decision, in October last year, had said the “employees shall be entitled to the gratuity, which fell due up to the insolvency commencement date”.
“The employees are also entitled to the payment of their full provident fund, unpaid up to the date of insolvency commencement,” the NCLAT order had said.
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