News

July 23, 2019

Jetlite Employees To Move NCLT Shortly After Resolution Professional Refused To Accept Their Employer’s Claims


[ By Bobby Anthony ]

Jet-Airways

Employees of JetLite, the low cost arm of Jet Airways, are expected to move the National Company Law Tribunal on July 23 after their claims were turned down by the resolution professional overseeing the insolvency process.

The development brings uncertainty about the salary arrears of JetLite employees. The airline has also not paid its employees since March, besides arrears of pilots which are higher.

Lawyer Shekhar Nanvaty is expected to represent the Jetlite employees whose claims amount to around Rs 50 crore.

Incidentally, JetLite was formerly Air Sahara, which was purchased by Jet Airways in 2007 and then operated as a budget carrier. JetLite remained a separate entity, and its brand was Jet Konnect.

JetLite doesn't have a bank account and all salary payments came from Jet Airways. If the ongoing insolvency process doesn't include their claims, JetLite employees would have hardly any options.

After the resolution professional refused to take their claims, JetLite employees sent a notice to the board of the low cost carrier.

However, after they received no reply, they are expected to the NCLT through their lawyer Nanavaty on July 23.

Meanwhile, the resolution professional has called for expression of interest from interested applicants by August 3.

Earlier, on July 13, resolution professional Ashish Chhawchharia, had published details of claims he had received.

As per that clarification, the corporate insolvency process of only Jet Airways (India) Limited has been initiated and since its wholly-owned subsidiaries are a separate legal entity, they are outside the purview of the process.

Hence, only claims pertaining to Jet Airways (India) Limited will be considered, his clarification had stated.

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