The Centre, during the hearing of cases filed by retired cabin crew who have not received arrears of wage revision, has told the Bombay high court that Air India’s (AI) financial liabilities do not belong to it.
The Centre, during the hearing of cases filed by retired cabin crew who have not received arrears of wage revision, has told the Bombay high court that Air India’s (AI) financial liabilities do not belong to it.
The court on was hearing petitions filed by Maharukh Chikliwalla and others stating that AI owed them Rs73 crore as dues. Union government’s advocate Vinay Masurkar submitted that after the court’s direction, the government in January had disbursed a sum of Rs1,200 crore to AI.
“AI liability is not a liability of the Government of India. It is now between AI and the petitioners,” the judges said, adding that the airline will have to pay wages and other dues of petitioners from its own funds.
AI counsel SK Talsania said Centre has disbursed Rs1,200 crore but with specific directions on its expenditure and not for paying dues of former employees. The Centre had promised Rs2,000 crore to AI and earlier released Rs800 crore.
Talsania said it is difficult for AI to clear the dues at this stage because the airline “has not earned profits”. “There is a problem in paying salaries of present employees,” he said.
Petitioner’s counsel JP Cama said AI could even pay the dues in installments. Advocate Mohan Bir Singh, representing another petitioner, said AI has an annual budgetary provision of Rs3,600 crore to pay salaries. “AI has money to buy new aircraft but does not have money to pay retired employees,’’ he said. The judges observed that AI has a “problem’’ in management.
Adjourning the matter, the judges directed AI to file an affidavit stating when it will be able to clear the dues of the petitioners and if it can pay in installments.
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