HC fixes March 25 for final hearing on AI-IA merger issue

NEW DELHI: The Delhi High Court on Monday fixed March 25 as the date for a final hearing on a petition challenging the merger of Air India and Indian into a new entity, National Aviation Company of India Ltd.
    
"Since similar and identical issues are involved in all the four matters, all these petitions should be heard together," a bench comprising Chief Justice M K Sharma and Justice Reva Khetrapal said.
    
The court also gave three weeks time to the centre to file its counter affidavit.
    
The Air India Aircraft Engineers Association had challenged the merger saying Air India and Indian have been incorporated by statute and cannot be merged without amending the law.
    
The association also referred to a Supreme Court judgement in HPCL and BPCL merger case, where it was held that companies incorporated by a statute of Parliament cannot be merged without approval of the legislative body.
    
How can a joint secretary be empowered to take a decision on the merger of two separate companies incorporated under law, the association's counsel said while challenging the notification issued by the government on the merger of two state-run carriers.
    
Another petition filed by Air India Cabin Crew Association (AICCA) through its counsel L M Lahoty said the merger should not be allowed until liabilities are fixed as to who would pay the arrears of their arrears.
    
AICCA alleged that Air India owed more than Rs 350 crore as arrears towards wages and other incentives, whereas Indian Airlines owed more than Rs 1,100 crore to the employees.