38.6c New Delhi, India, Wednesday, April 17, 2024
Business

JetLite Employees Move NCLT With Plea Seeking Inclusion In Resolution Proceedings Of Jet Airways

By LAWSTREET NEWS NETWORK      18 February, 2020 11:02 AM      0 Comments
JetLite Employees Move NCLT With Plea Seeking Inclusion In Resolution Proceedings Of Jet Airways

On Saturday (February 15, 2020) employees of JetLite, wholly owned subsidiary of defunct Jet Airways, moved the Mumbai bench of National Company Law Tribunal (NCLT) with a plea asking for inclusion of JetLite employees in Corporate Insolvency Resolution Process (CIRP) of Jet Airways. The court scheduled to hear plea on 3rd week of March.

Advocate of JetLite employees told that Resolution Professional (RP) has rejected their claims.

“Claims submitted to the Jet Airway’s RP are being rejected and JetLite’s employees are being neglected,” argued the counsel for the employees of JetLite. “Jet Airways and JetLite are interdependent entities. The dues of JetLite employees are around Rs 50 crore.”

The Final date of submission of expression of interest was January 15, 2020 and the last date of submission of resolution plan is February 17, 2020.

Consortium of banks led by State Bank of India moved to NCLT with a request to initiated Insolvency Resolution Process (IRP) against defunct airline. As a result of which on April 17, 2019 operations of defunct Jet Airways were shuttered, to start corporate insolvency resolution process (CIRP).

Anil Shukla, a pilot with JetLite, said there were around 600 employees with the airline.

What is IRP, CIRP and RP?

The Insolvency Resolution Process (IRP) is a one under the Insolvency and Bankruptcy Code, 2016, where the National Company Law Tribunal (NCLT) initiates a Corporate Insolvency Resolution Process (CIRP) when a company defaults on making payment to creditors. A financial creditor, operational creditor or corporate itself can file an application before NCLT for initiating IRP when default has occurred. In case of housing project, after amendment in the code, a homebuyer can also approach NCLT for initiating IRP if a developer fails to provide possession of the house or refund the money.

Under IRP, an interim Resolution Professional (RP) is appointed with the power to take charge of the company which has defaulted. The professional’s task is to take necessary steps to revive the company. Appointed professional also has the power to raise fresh funds to continue operations.

The IRP is granted 180 days to find a resolution, which can be extended by 90 days. If the IRP fails to find a resolution by then, the company is liquidated to pay the creditors.

 

Author – Satwik Sharma



Share this article:

About:

Explore Comprehensive Legal Reporting with LawStreet Journal: Your Go-To Source for Supreme Court an...Read more

Follow:
TwitterLinkedinInstagram


Leave a feedback about this
TRENDING NEWS

baba-ramdev-acharya-balkrishna-offer-to-make-public-apology-in-sc-for-misleading-advertisements
Trending Judiciary
Baba Ramdev, Acharya Balkrishna offer to make public apology in SC for misleading advertisements

Baba Ramdev and Acharya Balkrishna offer public apology in SC for misleading ads, court deliberates acceptance.

16 April, 2024 01:57 PM
hymen-tear-or-genital-injuries-are-not-a-sine-qua-non-to-prove-penetrative-sexual-assault-in-pocso-case-rules-guwahati-hc
Trending Judiciary
Non-tear of the hymen is of no consequence in cases of penetrative sexual assault: Guwahati HC in POCSO case [Read Judgment]

Hymen tear or genital injuries are not a sine qua non to prove penetrative sexual assault, the Guwahati High Court has held in a case under the POCSO Act, 2012.

16 April, 2024 05:06 PM

TOP STORIES

sc-sets-aside-judgment-upholding-arbitral-award-against-dmrc
Trending Business
SC sets aside judgment upholding arbitral award against DMRC [Read Judgment]

Supreme Court overturns arbitral award favoring Reliance Infrastructure subsidiary against DMRC, citing grave miscarriage of justice.

11 April, 2024 11:43 AM
delhi-hc-rejects-third-plea-for-arvind-kejriwals-removal-as-delhi-cm-blasts-petitioner-for-abuse-of-judicial-process
Trending Political NEWS
Delhi HC rejects third plea for Arvind Kejriwal's removal as Delhi CM, blasts petitioner for abuse of judicial process [Read Judgment]

Delhi High Court dismisses the third PIL plea before it seeking Aam Aadmi Party leader Arvind Kejriwal’s removal as Chief Minister of Delhi, imposes Rs. 50,000 cost on petitioner.

11 April, 2024 03:29 PM
use-of-social-media-to-interfere-with-administration-of-justice-needs-serious-consideration-sc
Trending Judiciary
Use of social media to interfere with administration of justice needs serious consideration: SC [Read Judgment]

Supreme Court warns against social media misuse in legal matters, cautions against prejudicial posts interfering with justice.

11 April, 2024 05:44 PM
two-day-conference-on-april-on-technology-and-dialogue-between-sc-and-singapore
Trending Legal Insiders
Two-day conference on April 13-14 on Technology and Dialogue between SC and Singapore

Explore AI's role in law at the India-Singapore Supreme Court conference on technology, enhancing judicial processes and access to justice, April 13-14, 2024.

12 April, 2024 06:16 PM

ADVERTISEMENT


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email