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Informist, Wednesday, Feb. 4, 2026

 

NEW DELHI – The Mumbai bench of the National Company Law Tribunal Wednesday asked the liquidator of Jet Airways (India) Ltd. to pay provident fund and gratuity dues to the company's former workmen and employees as are payable to them in terms of provisions of Employees' Provident Funds and Miscellaneous Provisions Act, 1952 and Payment of Gratuity Act, 1972. The tribunal bench also said such dues shall not form part of the liquidation estate of the company. 

 

The liquidator shall also determine and adjudicate the claim on the recovery certificate issued by the deputy labour commissioner for salary dues of the employees on its merit on the basis of judicial principles and provisions of the Insolvency and Bankruptcy Code, 2016, the tribunal said. The tribunal, however, said it cannot exclude the time spent in legal proceedings from the computation of the liquidation commencement date.

 

The tribunal was hearing applications from former workmen and employees of Jet Airways seeking directions to the liquidator that they should be paid provident fund and gratuity dues, which fell outside the liquidation estate of the debt-ridden company. 

 

Jet Airways has been grounded since 2019 after the Mumbai tribunal admitted State Bank of India's insolvency petition against the company. In the insolvency process, the consortium of United Arab Emirates-based entrepreneur Murari Lal Jalan and European investor Florian Fritsch emerged as the winning bidder to take over the airline in 2021.

 

Thereafter, there were multiple rounds of litigation across various fora over the consortium's failure to release money on time and to get necessary permissions from the civil aviation authorities to revive the airline. While the consortium had insisted it was in a position to implement the revival plan, the lenders had termed its claim a "fantasy". In November 2024, the Supreme Court had ordered the liquidation of Jet Airways after the consortium failed to implement the resolution plan.

 

Since Jet Airways was ordered into liquidation, its shares have been delisted. On Wednesday, shares of State Bank of India ended 0.4% higher at INR 1,068.20 on the National Stock Exchange.  End

 

Reported by Surya Tripathi

Edited by Vandana Hingorani

 

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