# Jet Aircraft Maintenance Engineers Welfare Association Vs. Ashish ChhawchhariaResolution Professional of Jet Airways(India) Ltd. & Ors. Company Appeal (AT) (Insolvency) No. 752 of 2021

> NCLAT judgment dated 2022-10-21. Citation: TCN-2022-NCLAT-00136. The case involves multiple appeals against the order dated 22.06.2021 passed by the National…

- **Court:** NCLAT
- **Order date:** 21 Oct 2022
- **Citation:** TCN-2022-NCLAT-00136
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/jet-aircraft-maintenance-engineers-welfare-association-vs-ashish-chhawchhariares-b4d4d8a6

## Summary

### Background

The case involves multiple appeals against the order dated 22.06.2021 passed by the National Company Law Tribunal (NCLT), Mumbai Bench, approving the resolution plan submitted by 'Jalan Fritesch Consortium' for the Corporate Debtor, Jet Airways (India) Limited. The appeals were filed by workmen, employees, and operational creditors of Jet Airways, challenging the resolution plan primarily on the grounds of inadequate provisions for their dues, particularly provident fund, gratuity, and retrenchment compensation. The Corporate Debtor, Jet Airways (India) Limited, has been in airline operation since 1993 but stopped its operation on 17.04.2019. An application under Section 7 of IBC was filed by State Bank of India, which was admitted by NCLT on 22.06.2019, and Mr. Ashish

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## Facts

Jet Airways (India) Limited faced insolvency proceedings initiated by State Bank of India under Section 7 of the IBC, admitted by NCLT on 22.06.2019. Ashish Chhawchharia was appointed as the IRP and later confirmed as the RP. The resolution plan submitted by Jalan Fritesch Consortium was approved by the CoC on 03.10.2020. The Adjudicating Authority approved the resolution plan on 22.06.2021. Several appeals were filed against this approval by workmen, employees, and operational creditors, primarily concerning the inadequate provision for their dues. The workmen's association, Jet Aircraft Maintenance Engineers Welfare Association, representing over 95% of the Aircraft Maintenance Engineers, submitted a claim of Rs.1,889,438,035/-, out of which the RP admitted

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## Issues and analysis

### Issue 1: Whether the workmen and employees are entitled to receive the payment of provident fund, gratuity …

**Ratio:** Section 36(4)(a)(iii) of the IBC excludes all sums due to any workman or employee from

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**Reasoning:** The court relied on several judgments, including State Bank of India vs. Moser Baer

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**Interpretation:** The interpretation of Section 36(4)(a)(iii) is that sums due to workmen from

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**Application:** In the present case, the court held that the workmen and employees are entitled

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Jet Aircraft…
- **Respondents:** Jet Airways…; Ashish Chhawchhari…
- **Other parties:** 7th Edition…; Resolutio…; +18 more

## Timeline

- **1993-01-01 — Jet Airways in…**: Jet Airways (India) Limited has been…
- **2019-04-17 — Jet Airways Stops…**: Jet Airways (India) Limited…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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