The Jet Airways Cabin Crew Association (JACCA) and Bhartiya Kamgar Sena, in their petition before the National Company Law Appellate Tribunal (NCLAT), have submitted that dues of all workmen of the airline were not included as part of the Corporate Insolvency Resolution Process (CIRP) cost. JACCA claims to represent a majority of the airline's cabin crew, while Bhartiya Kamgar Sena claims to represent more than 70 per cent of the airline's ground staff.
The two Jet Airways employee groups have requested the NCLAT to "quash and set aside" the order passed by the NCLT's Mumbai Bench that approved the Jalan-Kalrock consortium's resolution plan for Jet Airways. They have sought a stay on the execution of this order till their petition is heard.
The petition has pointed out that the approved resolution plan mandates demerger of Jet Airways' subsidiary Airjet Ground Services Ltd (AGSL). Also, the services of the airline's employees, who were on the payroll as on the date of approval of the resolution plan, will be transferred to the demerged entity.
“It further proposes that with the said demerger of employees, the corporate debtor (Jet Airways) will not be liable for all the retirement benefits of said demerged employees at all and the said AGSL, which is not yet even operational, will be solely responsible for the said liability," it further noted. As per the petitioners, their members did not receive any salary from March 2019 and had submitted their claims during the CIRP.
NCLT had assured earlier that entire ground staff, engineers and pilots should be considered as an asset of the company. "The above observation by NCLT as well as the approach of Respondent No 1 (Resolution Professional) clearly depicts that the dues of all workmen were that point of time considered as CIRP cost," the petitioners have contended.
The petition has also sought a stay on the proposed liquidation of the AGSL as well as sales of assets like aircraft, aircraft spares and ground equipment of Jet Airways till the NCLAT reaches a final decision. Further, the employee groups have flagged the consortium's requirement that if its proposal, dated July 5, 2021, was not accepted by 95 per cent of the employees, then it would be entitled to liquidate AGSL.
According to the petition, it was also mentioned that if any employee challenges the proposal, then the proposal will stand withdrawn. The proposal, dated July 5, pertains to employee dues and retirement benefits, among others. It also mentioned that 76 per cent of AGSL will be held by the Employees Welfare Trust of AGSL.
In a nutshell, the entire liability of retirement benefits of said demerged employees of Jet Airways will be saddled upon their own back through this new entity AGSL and through this Employees welfare Trust mechanism, the petition said.