Former Jet Airways employees secured a major legal victory on Tuesday after the National Company Law Appellate Tribunal (NCLAT) dismissed an appeal by the State Bank of India (SBI) and upheld their right to receive provident fund (PF), gratuity and pension dues in full.
The tribunal ruled that retirement benefits such as provident fund, gratuity and pension cannot be treated as part of the airline’s assets available for distribution among creditors during insolvency or liquidation proceedings. These statutory dues belong to employees and must be paid in full, the tribunal observed.
SBI had challenged an earlier order directing payment of these benefits, arguing that such claims should be considered within the insolvency resolution process. However, the NCLAT rejected the plea, reaffirming that employee welfare benefits are protected under the Insolvency and Bankruptcy Code (IBC).
The verdict comes as a major relief for thousands of former Jet Airways employees who have been waiting for years to receive their retirement benefits after the airline suspended operations in 2019 and entered insolvency proceedings. Many have faced financial hardship while awaiting the outcome of the prolonged legal process.
Employee representatives welcomed the ruling, saying it restores hope to workers who have endured years of uncertainty. For many former employees, provident fund and gratuity are essential savings meant to provide financial security after retirement or during difficult times.
The tribunal also reaffirmed that statutory retirement benefits cannot be diverted to repay financial creditors. Legal experts believe the judgment could serve as an important precedent for similar insolvency cases involving employee claims in the future.
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