Secondment of employees from a subsidiary to a holding company does not create a new employer-employee relationship or transfer the contract of employment unless there is a clear novation or fresh appointment, and such employees cannot claim dues from the holding company's liquidation estate.

IN THE NATIONAL COMPANY LAW TRIBUNAL
MUMBAI BENCH – I
IA (IBC)/5729/MB/2025
IN CP (IB) NO. 2205 OF 2019

BRIEF FACTS:

1. The present Interlocutory Application is filed on 28.11.2025 by Mr. Yogen Vaman Vemekar (for self and 99 others) under Section 60(5)(b) of the Insolvency and Bankruptcy Code, 2016 (‘Code’) read with Rule 11 of the National Company Law Tribunal Rules, 2016 for seeking following reliefs:

(a) Declare that the Applicants, constitute 'workmen' within the meaning of Section 53(1)(b) read with Section 3(36) of the Insolvency and Bankruptcy Code, 2016, and that, the Applicants seconded to Jet Airways to be treated as part of the unified Jet Airways group workforce, with their dues to be processed and distributed under the liquidation waterfall in accordance with their ranking under Section 53 and other allied provisions of the Code.

(b) Direct Respondent No.1 (Liquidator) to accept, adjudicate, and admit the claims of the Applicants as part of the claims to be distributed under the liquidation of Jet Airways (India) Ltd., with parity of treatment to similarly placed Jet Airways (India) Ltd. 's workmen, and to update the list of stakeholders accordingly.

(c) Direct Respondent No. 1 to provide a time-bound schedule (e.g., 30 days) for verification and admitting the claims of the Applicants supported by documentary annexures, to communicate speaking orders to each Applicant, and to file a consolidated compliance affidavit before this Hon'ble Tribunal thereafter.

IN THE NATIONAL COMPANY LAW TRIBUNAL
MUMBAI BENCH – I
IA (IBC)/5729/MB/2025
IN CP (IB) NO. 2205 OF 2019

(d) Direct disclosure of the assets of Respondent No.2 and Respondent No. 3 auctioned by the Respondent No. 1 in an affidavit till date since the commencement of the liquidation proceedings;

(e) Pending adjudication, restrain Respondents from disbursing any liquidation proceeds that could affect satisfaction of admitted claims represented by the Applicant herein; in the alternative, direct creation of an escrow/reserve sufficient to meet such claims upon adjudication;

(f) Pass such other order(s) as this Hon'ble Tribunal may deem fit in the interest of justice and equity.

2. The Applicant and 99 other individuals, who have appointed the Applicant as their Authorized Signatory for revaluating and admitting the claims, are the employees of the Respondent No. 3, M/s Jet Lite (India) Limited (‘Jet Lite’) and claims that their employer had seconded their employment to its holding company, namely M/s Jet Airways (India) Ltd.

3. The Respondent No. 1 is the Liquidator of Respondent No. 2 i.e. Jet Airways (India) Limited (‘Corporate Debtor’), appointed by this Tribunal vide Order dated 26.11.2024.

4. Prior to this, the Corporate Insolvency Resolution Process (“CIRP”) under IBC commenced on 20.06.2019, and the Corporate Debtor was resolved in terms of Resolution Plan approved by CoC on 17.10.2020 followed by approval of this Tribunal vide order dated 22.6.2021. However, upon the failure to implement the failure to implement approved resolution plan, on 7.11.2024, the Hon’ble Supreme Court directed the Corporate Debtor to be liquidated, and this Tribunal passed order for liquidation on 26.11.2024.

5. The case of the Applicants