HC asks govt, NACIL to file reply on merger of AI, IA

The Delhi High Court today directed the government and the National Aviation Company of India Ltd to file their reply on a petition challenging the merger of two state carriers Air India and Indian Airlines.

A division bench comprising justice BD Ahmed and Justice Veena Birbal directed the Ministry of Corporate Affairs (MCA) and NACIL to file their replies in two weeks and complete their pleading.

The Court's direction came over a petition filed by the All India Cabin Crew Association (AICCA) which has challenged the order passed by the ministry of corporate affairs in 2007 allowing the amalgamation of the two carriers.

In their petition, the association has challenged the Constitutional validity of section 620 of the Indian Companies Act, 1956, under which MCA allowed the merger. Section 620 empowers MCA to exempt any government company from taking mandatory sanctions of the High Court and other regulatory body for mergers.

The AICCA had, in 2007, challenged the merger before the Bombay High Court on the ground that it defies Parliament's intent to keep international and domestic carriers separate.  

Later the matter went before the Supreme Court, which transfered it to the Delhi High Court as it was already hearing three other petitions filed by the associations of the cabin crew, engineers and employees challenging the merger.

In the petitions of cabin crew, engineers and employees, the division bench directed them to file their rejoinder and complete their pleadings. The court has listed the matter on January 28 for hearing.