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When Jet Airways temporarily shut shop, one of the most affected were employees, most of whose salaries had not been paid for many months. The company is currently undergoing insolvency
proceedings under the National Company Law Tribunal (NCLT) and an interim resolution professional was appointed, who has now been directed to talk to the creditors to the company to find a
solution on release of salaries to the now defunct airline’s personnel.
The lenders to Jet Airways have constituted a Committee of Creditors (CoC), which is led by the State Bank of India, the largest creditor to Jet. The IRP, Ashish Chhawchharia of Grant
Thornton India, has now been mandated to hold discussions with the CoC and report back to the NCLT on what could be done to address the issue of payment of pending salaries to the Jet
Airways employees. It is learnt that the employee unions are claiming salaries have not been paid for a few months and one of the employee unions had approached the NCLT. It is in response
to this appeal from the union only the current directive to the IRP has been given it is reported.
It may be recalled only last week, the CoC had given its approval for the release of $10 millon or approximately Rs 69 crore to meet certain expenses through the resolution process. NCLT has
asked the IRP to check if the salary dues to employees may also be clubbed within the corporate insolvency resolution (CIRP) for which the CoC will have to be taken on board.
Another issue came up before the Tribunal. This related to the property occupied earlier by Jet Airways for its corporate headquarters. The owner of the of the property, Siroya Centre has
filed an appeal to the NCLT to direct the IRP to shift out of the premises.
August 8 is the next critical date for the Jet Airways case when the latest report of the IRP will be presented to the judges and there may be some movement in the insolvency resolution from
the CoC as well. The salary issue will also figure during this hearing.
