Unpaid salary lands Zoom Air in trouble; insolvency proceedings initiated
Regional airlines Zexus Air Service Pvt Ltd, which runs an airlines service by the name of Zoom Air, has gone into insolvency after Delhi bench of the National Company Law Tribunal (NCLT) admitted an insolvency application filed by one of its employees.
The application filed under Section 9 of the Insolvency and Bankruptcy Code (IBC) says that Zoom Air failed to make payment Rs 54 lakh in salaries to the operation creditor Capt. Samuel Ahmad Tarig Omer Ahmad.
As per the insolvency petition, Ahmad joined in September 2016 as Type-rated Commander CRJ Fleet –Zoom Air at a monthly remuneration of $6200 per month.
The corporate debtor has defaulted in payment of salary in November 2016, January to March 2017, January to June 2018 and again in August 2018.
The operation creditor has further said in its plea that the management of Zoom Air terminated its salary in September 2018 without giving him the two-month salary payable on termination as per the contract.
The debt became due on 1 September 2018, the day the last payment of salary was made by the corporate debtor.
The operational creditor issued demand notice to Zoom Air, but the latter did not respond to the notice neither did anyone from the airlines appear in NCLT hearings.
The tribunal said in its order that the default was established and it was a fit case for Corporate Insolvency Resolution Process (CIRP).
The NCLT has appointed Aashish Gupta as the insolvency resolution professional in the case.
Zoom Air, is the newest Full service commuter airlines which operates to multiple capitals in India hubbing over New Delhi, Kolkata, Jabalpur, Tejpur, Mumbai and Hyderabad in initial stages offering convenient daily connections between city pairs.
According to the website of the airlines, it connects Tejpur (Assam) with daily multiple direct frequencies to Kolkata, New Delhi and Mumbai with premium service on board. It also claims to be first airlines to direct connect Shillong daily to Kolkata and then further to Mumbai, New Delhi and major cities.
“From New Delhi, Zoom Air daily connects Aizawl, Aurangabad, Chandigarh, Dharamshala, Dimapur, Durgapur, Hyderabad, Kullu, Jorhat, Kolkata, Lucknow, Ranchi, Mumbai, Srinagar and Shillong in Phase-1 of expansion,” says the website of the airlines.
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