Industry

NCLAT directs Jalan-Kalrock consortium to share resolution plan details with Jet Airways workmen

FILE PHOTO: Jet Airways aircraft are seen parked at the Chhatrapati Shivaji Maharaj International Airport in Mumbai, India, April 18, 2019. REUTERS/Francis Mascarenhas/File Photo

FILE PHOTO: Jet Airways aircraft are seen parked at the Chhatrapati Shivaji Maharaj International Airport in Mumbai, India, April 18, 2019. REUTERS/Francis Mascarenhas/File Photo

The National Company Law Appellate Tribunal (NCLAT) on January 20 directed the Kalrock-Jalan consortium, the winning bidder for bankrupt Jet Airways, to share portions of the resolution plan pertaining to claims of employees with the airline's workmen.

The Association of Aggrieved Workmen of Jet Airways (India) Ltd had sought a copy of the approved resolution plan and the latest direction has come on a plea filed by the association.

The development comes almost seven months after the Mumbai bench of the National Company Law Tribunal (NCLT) approved the Jalan-Kalrock Consortium''s resolution plan in June 2021.

A two-member NCLAT bench, headed by Chairman Justice Ashok Bhushan, said as the consortium's resolution plan for the airline has already been approved by the NCLT, the plan "is no more confidential" and a copy should be provided to the aggrieved person.

The appellate tribunal noticed that before the NCLT, applications were filed by several applicants including the National Aviators’ Guild, Jet Aircraft Maintenance Engineers Welfare Association, Bhartiya Kamgar Sena, Jet Airways Cabin Crew Association etc, praying for copy of resolution Plan, which was rejected by it on February 22, 2021.

"We, thus, are not inclined to issue a direction to provide entire Resolution Plan to the Appellant herein. We, however, are fully satisfied that the Appellant is entitled for the relevant part of the Resolution Plan relating to the claim of the workmen and employees," said the NCLAT.  According to the NCLAT, the Association of Aggrieved Workmen of Jet Airways (India) Ltd has challenged the Resolution Plan of Kalrock-Jalan consortium before it and is entitled to know its contents to effectively prosecute their appeal.

The appellate tribunal directed that the part of the resolution plan which deals with claims of workmen and employees should be given to the association within "three weeks from today".

"We, thus, direct that part of Resolution Plan which deals with claim of workmen and employees should be provided to the Appellant by Successful Resolution Applicant – Respondent No. 4 (Kalrock-Jalan consortium) within a period of three weeks from today," it said.

The NCLAT further said after the approval of the Resolution Plan, it does not remain a confidential document.

"We, thus, are of the view that Resolution Plan after its approval by the Adjudicating Authority is no more a confidential document, so as to deny access to even a claimant," the appellate tribunal said.

However, it also added that a resolution plan cannot be made available to each and to anyone who has no genuine claim or interest in the process.

"On various grounds the access to Resolution Plan even if it is not a confidential document after approval can be denied in proper and appropriate cases," it said.

In October 2020, the airline's Committee of Creditors (CoC) approved the resolution plan submitted by the consortium of the UK's Kalrock Capital and the UAE-based entrepreneur Murari Lal Jalan.


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Printable version | May 24, 2022 12:16:13 pm | https://www.thehindu.com/business/Industry/share-plan-of-resolution-with-jet-workmen/article38299678.ece