The Supreme Court on Monday has refused to interfere with an NCLAT order concerning the provident fund, gratuity and pension dues of Jet Airways’ workmen and employees, leaving the appellate tribunal’s directions undisturbed. The Court, however, kept the questions of law arising from the matter open for consideration in an appropriate case.
The dispute arose from the liquidation of Jet Airways and concerns the treatment of employees’ statutory dues under the Insolvency and Bankruptcy Code. The NCLAT had held that provident fund, gratuity and pension amounts payable to workmen and employees would not form part of the liquidation estate, and therefore could not be distributed among creditors as part of the liquidation assets.
The challenge before the Supreme Court was led by financial creditors, including State Bank of India, who raised legal questions concerning the interpretation and interplay of the provisions governing liquidation and employees’ statutory dues.
The Bench of Chief Justice Surya Kant, Justice Joymalaya Bagchi, Justice V Mohana while declining to interfere with the NCLAT order in the facts of the case, made it clear that the larger questions of law have not been decided and would remain open for examination in an appropriate matter.
The NCLAT had also issued directions concerning the calculation of the period for which workmen’s dues were to be considered, excluding the period spent beyond the statutory limit during the insolvency resolution process.