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Jet Airways insolvency: Employees asked to submit claim for pending salaries, dues

The resolution professional for Jet Airways has invited employees of the company to submit their claim of dues by July 4

twitter-logo BusinessToday.In   New Delhi     Last Updated: July 2, 2019  | 21:21 IST
Jet Airways insolvency: Employees asked to submit claim for pending salaries, dues
The National Company Law Tribunal will taking up Jet Airways case for hearing on July 5

The resolution professional for Jet Airways has invited employees of the company to submit their claim of dues by July 4. In an exchange filing on Tuesday, the grounded airline's Insolvency Resolution Professional (IRP) invited employees of the company to file their claims with proof on or before the stipulated date, with the National Company Law Tribunal (NCLT) taking up the case for hearing on July 5.

"As per regulation 9 of the Insolvency Resolution process for Corporate Persons (CIRP) Regulations an employee/workman of the company may file their claims with the IRP in the format provided in Form D. Where there are dues to numerous workmen or employees, an authorised representative may submit one claim (with proof) for all such dues on their behalf in the format provided in Form E in the CIRP Regulations," Jet Airways said in a filing to the Bombay Stock Exchange.

Jet Airways owns over Rs 8,500 crore to a SBI-led consortium of banks. The crisis-hit airline also owes over Rs 13,000 crore to hundreds of vendors and 16,000 employees in pending dues and salaries.

The company requested the claimant to study the instructions carefully while submitting the claim form and asked them to attach all the relevant supporting documents. "It is very important that your claim should only include amounts due to you up to and as on the insolvency commencement date i.e. June 20, 2019," it added.

Also Read: Jet Airways resolution professional invites creditors' claims by July 4

The NCLT had admitted the corporate insolvency resolution plea against debt-laden Jet Airways by lead lender State Bank of India (SBI) on June 20.  Admitting the plea against Jet Airways, the court had asked interim resolution professional (IRP), Ashish Chhawchharia, Partner at Grant Thornton, to take control of the carrier's assets and submit his first progress report by July 5. The tribunal has ordered a resolution within three months, failing which the airline could be headed for liquidation.

Under the insolvency rule, the senior company management is required to provide access to all documents sought by the IRP. Besides, financial institutions maintaining the company's accounts are also bound to provide all the information sought by the resolution professional.

Also Read: Jet Airways crisis: NCLT admits SBI's insolvency plea, orders resolution in three months

Jet Airways had stopped operations in April earlier this year after the consortium of lenders refused funds required to keep the airline afloat. The banks have been trying to salvage the company ever since.

Meanwhile, shares of Jet Airways continued gaining streak on Tuesday, closing 3.17 per cent higher at Rs 73.20 apiece on the Bombay Stock Exchange.

Edited by Chitranjan Kumar

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