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A top corporate tribunal has rejected the plea of Jet Airways employees seeking a copy of the resolution plan of the successful consortium of Murari Lal Jalan and Kalrock Capital.
According to the National Company Law Tribunal (NCLT), it noted that the statutory mandate requires that the resolution plan can only be presented to the committee of creditors (CoC) before its approval and presented before the adjudication authority for its satisfaction in approving the same.
The code or the regulation there under do not contemplate presentation or supply of the resolution or a copy thereof to any other body or entity, said the order by a two-bench judge of the Mumbai bench of NCLT.
NCLT rejects Jet employees plea for copy of Jalan s resolution plan
By IANS |
Published on
Tue, Feb 23 2021 21:03 IST |
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Reliance Infratel resolution plan approved by NCLT Mumbai. Image Source: IANS News
Mumbai, Feb 23 : A top corporate tribunal has rejected the plea of Jet Airways employees seeking a copy of the resolution plan of the successful consortium of Murari Lal Jalan and Kalrock Capital.
The consortium s resolution plan has been accepted to restart the now defunct airline.
According to the National Company Law Tribunal (NCLT), it noted that the statutory mandate requires that the resolution plan can only be presented to the committee of creditors (CoC) before its approval and presented before the adjudication authority for its satisfaction in approving the same.
The National Company Law Tribunal (NCLT) will not hear employees of Jet Airways before passing its order on the grounded airline’s revival plan. It said so while rejecting employee union applications for intervention. Hearing on the resolution plan is expected to start on Tuesday. “Taking facts of the case at hand, and the law as it stands today into consideration, we are of the view that the applicants (employee unions) cannot be entitled to the copy of resolution plan or any portion thereof. They would also not be eligible to be heard or intervene in the process of consideration of the resolution plan by this authority. The payments as to their wages, gratuity and other terminal benefits shall be in accordance with the law and in terms of the resolution plan guided by the provisions under the code,” Janab Mohammed Ajmal (member judicial) and V Nallasenapathy (member technical) said in their order.
February 22, 2021
Unions wanted to see plan to know if it protected their rights
Jet Airways employee unions’ plea to review the resolution plan submitted by Kalrock-Jalan consortium was rejected by the Mumbai Bench of NCLT on Monday. As many as five employee unions had appealed to the insolvency courts to see the resolution plan. “The respondent ( resolution professional managing Jet Airways) is duty-bound to maintain and ensure confidentiality of the resolution plan as provided under the Insolvency and Bankruptcy Board of India,” the court said in its written order, accessed by
BusinessLine.
The airline was temporarily grounded in April 2019. Later that year, it was dragged to the NCLT by its lenders over unpaid dues. The CoC and the Resolution Professional held at least four rounds of inviting interest for the debt-strapped airline.