Bengaluru
The Karnataka High Court has ordered Jet Airways, currently under liquidation, to pay ₹13 lakh in back wages along with accrued interest to a former employee, rejecting the airline’s plea challenging a 2017 Industrial Tribunal ruling. The case involves Prashant Rao, who joined Jet Airways in 1999 as a customer service assistant and was dismissed in 2008 after disciplinary proceedings. The Industrial Tribunal, in its 2017 award, held that the dismissal violated natural justice and that alleged misconduct was unproven, directing reinstatement with 50% back wages.
Jet Airways had sought to challenge the Tribunal’s decision, obtaining an interim stay on the condition that ₹13 lakh be deposited with the High Court Registry. During the pendency, the airline underwent corporate insolvency and liquidation, with the Official Liquidator assuming control of its assets. The liquidator argued that reinstatement was impossible and that Rao should claim dues through the insolvency process.
The High Court, however, held that Rao’s entitlement to back wages had crystallized on the date of the Tribunal award, long before liquidation, and dismissed Jet Airways’ arguments. The Court emphasized the principle that interim orders merge with final orders and cannot be used to the petitioner’s advantage once a writ is dismissed. Consequently, the Court directed the Registry to release the ₹13 lakh along with accrued interest to Rao upon proper identification, ensuring the employee received his legally entitled dues despite the airline’s liquidation.
This ruling underscores that employee rights recognized by tribunals remain enforceable, even when a company undergoes insolvency proceedings.
