jet airways: NCLT rejects Jet employee unions’ plea to share details of the resolution plan – The Economic Times

Clipped from: https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/nclt-rejects-jet-employee-unions-plea-to-share-details-of-the-resolution-plan/articleshow/81171658.cms?utm_source=ETTopNews&utm_medium=HPTN&utm_campaign=AL1&utm_content=23Synopsis

The petitions argued that the employees of the corporate debtor (Jet Airways) are its assets and are interested in its successful resolution. The Union being unaware of the details of the Resolution Plan needed to know what was provided thereunder for its members and employees.

The dedicated bankruptcy court has rejected the pleas filed by four employees associations of bankruptJet Airwaysas well as Bhartiya Kamgar Sena who were seeking a copy of the Jalan and Fritch Consortium’s revival plan from the resolution professional (RP).

The petitions argued that the employees of the corporate debtor (Jet Airways) are its assets and are interested in its successful resolution. The Union being unaware of the details of the Resolution Plan needed to know what was provided thereunder for its members and employees.

“Any revival plan, for that matter, both in terms of employment and provision for outstanding wages/dues, is vital for their sustenance and mutual benefit,” argued employees in their petitions. “The applicants (employee associations) would be the most affected by the orders of this authority approving or rejecting the plan. Thus, it becomes imperative that the applicants are made privy to the Resolution Plan before it is considered.”

These associations are the National Aviators’ Guild (NAG), a union representing the pilots of Jet Airways on behalf of approximately 1045 pilots, Jet Aircraft Maintenance Engineers’ Welfare Association (JAMEWA), Jet Airways Cabin Crew Association (JACCA) and All India Jet Airways Officers’ and Staff Association (AIJAOSA).

However, countering this, the RP of Jet Airways argued that the employees are operational creditors under the law and the Code (IBC) doesn’t envisage sharing of the resolution plan with the operational creditors.

“The Code has adequate measures and mechanisms to protect the interest of the operational creditors and other stakeholders. The Adjudicating Authority would also consider the Plan in the light of the provisions contained in the Code so that the interest of all the stakeholders is addressed and taken care of,” argued lawyers for the RP.

The RP also argued that the resolution plan is a confidential document containing sensitive information and it could only be presented to the CoC.

“We are of the humble view that the applicants cannot be found entitled to a copy of the resolution plan or any portion thereof,” said a bench preceded over by Janab Mohammed Ajmal and V. Nallasenapathy in its 22-page order on February 22. “They would also not be eligible to be heard or intervene during the process of consideration of the Resolution Plan by this Authority.”

According to Ashish Pyasi, Associate Partner at Dhir & Dhir Associates, the law is still evolving including the issue which was raised by the applicants. “Typically the resolution plan is not provided to other stakeholders in the process and only a committee of creditors are privy to such plan and the present order is in a way reaffirmation of the same,” adds Pyasi.

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