Mumbai: The process of bankruptcy of Jet Airways, the first Indian carrier to try the resurrection after stopping transit in the court of bankruptcy, has caused a challenge that can cause a better understanding of how bankruptcy and bankruptcy code (IBC) works when it comes to the airline, said experts Track this problem.
Jet Trade Unions have challenged the Tribunal National Legal Agreement (NCLT) approval from the Kalrock-Road Consortium resolution plan in the Court of Appeal.
Employment prospects of staff and their contributions are separate, the petition has a resolution process.
Staff who received their last salary in March 2019, were made to wait for more than two years to finally study on June 30 that only 50 of 4000 strange employees would be absorbed in Jet 2.0.
Throughout the process of resolution, Jet, the Professional Resolution (Rp) discussed employees as a valuable jet asset, the petition said.
Order NCLT January 8 also considers their acet “ that is very fluent with the procedure to run the airline …
and therefore must be protected by truly maintaining their needs “.
But in the end` `Rp.
Treat them as labor with outdated knowledge , burdensome and therefore have to be discarded out of the service ”, said Union Petition.
Sudip Mahapatra, partner S & R Associates, a law firm said: `The process of Jet Airway resolution began two years ago in mid-2019.
It was a long time for Maintain thousands of employees in Tenterhooks about their work.
In case of any IBC involving companies with many employees, fast tracking this process means clarity on the prospect of their work from the beginning in the process “.
Also, unlike a cement or steel company, the airline was not awarded the long shelf life to last several years in the process of resolving bankruptcy.
“ Airlines consumers react to bankruptcy, people stop ordering airplane tickets.
If the airline has suspended the operation, as in the case of Jet Airways, the airport slot, the main asset for the airline, is not protected.
IBC is a long process involving one or two years.
Whether bankruptcy of airline must be handled through a fast track process that is separate under the IBC is the question.
In the ideal world, pre-packaging insolvency processes are completed in 60-90 days to allow new owners to take over or restart operations will be more suitable for the airline business, “he added.
Dr.
D Dhanuraj, Chair of the Public Policy Research Center, Non-profit With interest in economic, social and political problems today said: “Under Indian employment laws, a company has the obligation of laws to pay staff fees such as Provident funds, gratuities.
In the case of the collapse of the company, what is the mechanism of paying this legal fee? These aspects are not clearly spelled, especially with the court of bankruptcy that goes into the image.
My reading is that cases involving the interaction between Labor Law and IBC, this is not clear, whether this legal contribution must be part of the NCLT process or is it a problem of the Labor Department?.
“Parvez Damania flight expert says that the positive equity of jets has been fully destroyed.” Except the license, what is the remaining value, “he said referring to the airport slot.” How could the government hold on to the slot forever.
If the slot is given to other airlines, why They returned it? I am not confident in the whole process of jet revival.
“Most jet planes have been taken over by the leasing company and starting with some planes left in India will be a very difficult and expensive task, he said.
Airlines and NCLT: Jet Airways Case Throws Lessons
