Jet Airways stopped operations in April 2019 and was ultimately ordered into liquidation by the Supreme Court docket in November 2024 after the Jalan-Fritsch consortium did not implement its decision plan.
The dispute arose from a June 30 judgment of the NCLAT within the Jet Airways liquidation proceedings.
The appellate tribunal had dismissed appeals filed by State Financial institution of India (SBI) and different monetary collectors in opposition to an NCLT path requiring PF and gratuity dues of Jet Airways staff to be paid outdoors the liquidation property.
The NCLAT rejected SBI’s interpretation and held that Part 36(4)(a)(iii) of Insolvency and Chapter Code (IBC) was “due centric and never asset centric”. It dominated that staff couldn’t lose their statutory entitlement merely as a result of the company debtor had failed to keep up a separate PF or gratuity fund.
The NCLAT additionally allowed exclusion of 1,656 days spent in litigation whereas calculating the 24-month interval for figuring out workmen’s dues underneath Part 53
The central concern earlier than the Supreme Court docket was whether or not such dues may be excluded from the liquidation property underneath Part 36(4)(a)(iii) of the IBC even when the employer had not maintained a separate or identifiable PF or gratuity fund.
