NCLAT upholds PF, gratuity dues for Jet Airways employees, rejects SBI appeal
The NCLAT has ruled that Jet Airways must prioritize the payment of provident fund and gratuity dues to former employees over the claims of financial creditors like SBI. The tribunal rejected bank arguments that these funds should be part of the general liquidation estate.
Why it matters
This decision sets a significant legal precedent for worker rights in insolvency cases, ensuring that employee benefits are protected from being absorbed by corporate debt liquidation.
In a significant relief for thousands of former Jet Airways employees, the National Company Law Appellate Tribunal (NCLAT) on Tuesday (June 30, 2026) upheld an NCLT order directing the airline’s liquidator to pay provident fund (PF) and gratuity dues to workmen and employees in full, dismissing appeals filed by the State Bank of India (SBI) and seven other financial creditors.
The article reports on a legal ruling using neutral language and provides perspectives from both the employees and the financial institutions involved.
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