Jet NCLAT order seen as a big win for bankrupt companies’ workers

Mumbai: The National Company Law Appellate Tribunal (NCLAT) recently held that the resolution plan to revive Jet Airways could be held invalid if the airline doesn’t pay the statutory dues, such as provident fund and gratuity, owed to its employees and workers. Legal experts have deemed it as an important battle win in the war for rights of workers of bankrupt companies.

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The significance lies in the invocation of section 30 (2)(e) of the Insolvency and Bankruptcy Code (IBC), which states that the resolution professional shall examine the resolution plan to confirm that “it does not contravene any of the provisions of the law for the time being in force.”