Kalrock-Jalan gets 2 weeks to address Jet staff worries

Kalrock-Jalan consortium gets 2 weeks to reply to Jet Airways' staff concerns: Report

The employees had rejected the resolution plan approved by the NCLT

Credit: Reuters Photo

The National Company Law Appellate Tribunal (NCLAT) has given two weeks time to the counsel of Kalrock-Jalan consortium to respond to concerns raised by Jet Airways employee associations around the resolution plan, according to a report by Mint

Last week, the employees of Jet Airways approached the National Company Law Appellate Tribunal (NCLAT) seeking quashing of the NCLT's approval of the resolution plan of Kalrock-Jalan consortium.

The employees had rejected the resolution plan. In the voting process of employees, only 35.1 per cent approved the plan while 3.2 per cent rejected it, and 61.6 per cent abstained from voting. As such, the proposal for ex-employees and workmen of Jet Airways (India) Ltd, put forward by Murari Lal Jalan and Florian Fritsch, has lapsed, the consortium informed employees on Thursday.

In a plea, the Bharatiya Kamgar Sena (BKS) and the Jet Airways Cabin Crew Association had cited concerns on unpaid salary dues and continuity. The admitted claims of employees stood at Rs 1,265 crore, while the consortium has proposed Rs 52 crore to settle their claims.

According to employees, the airline owes at least Rs 3 lakh to each employee which may well go up to Rs 85 lakh, while now each employee is being offered a total of around Rs 23,000, which one employee, who did not want to be named, described as "peanuts".

The plan proposes to pay each workman of the corporate debtor Rs 11,000 cash, Rs 5,100 cash as medical expense reimbursement for the parents of the workmen, Rs 5,100 cash as school fee reimbursement for children of the staff, Rs 1,100 for stationery for children of the staff and one-time mobile phone recharge of Rs 500.

This cash payment will be made out of the contingency fund (Rs 8 crore). Additional amounts, if required, will be utilised out of the proceeds of the sale of assets received by the corporate debtor.

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