NEW DELHI. The National Company Law Appellate Tribunal (NCLAT) has upheld the rights of Jet Airways employees, directing that approximately Rs 265 crore towards Provident Fund (PF) and gratuity be paid in full before any distribution is made to banks or other creditors. The tribunal also recognised May 20, 2020, as the effective date of liquidation, making employees eligible for nearly 24 months of pending salaries in addition to their statutory dues. The ruling comes after a prolonged legal battle spanning seven years.
The judgment is being hailed as a significant victory for thousands of former Jet Airways employees and their families, reaffirming that employee welfare and statutory benefits must take precedence during insolvency proceedings. The decision is expected to provide long-awaited financial relief to nearly 20,000 affected families while reinforcing the legal protection available to employees under India’s insolvency framework.
The verdict has also sparked wider discussions within the aviation industry on the importance of placing employees at the centre of corporate governance. Industry observers say the ruling sends a strong message that while financial assets can be recovered, the trust, dignity, and commitment of employees are equally valuable for building a resilient and sustainable aviation sector.
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