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Hearing against Air India, Indian merger halted

By IANS

New Delhi : The Supreme Court Tuesday halted the hearing of a plea in the Bombay High Court against the merger of two state-owned carriers Air India and Indian Airlines.

A bench of Justices S.B. Singh and H.S. Bedi stayed the hearing in the Bombay High Court on a petition of the central government, seeking transfer of the case to the Delhi High Court. The Delhi High Court too is adjudicating on a bunch of petitions against the merger.

The bench on a petition by the National Aviation Company of India Ltd – a new company created to own the merged entities – also issued notices to the employees unions that challenged the merger in the Bombay High Court.

The employees unions and associations that challenged the merger include the Trade Union Joint Action Committee of Indian Airlines Employees, the Indian Commercial Pilots’ Association, the Indian Airlines Officers’ Association and the Air Corporation Employees Union, among others.

The National Aviation Company of India Ltd. told the apex court that it was seeking the transfer of the hearing to the Delhi High Court “in the interests of justice and to avoid the multiplicity of judicial proceedings, costing valuable judicial time”, said advocate H.S. Chandhoke, appearing for the state firm.

He said, “The transfer of the petition from the Bombay High Court to Delhi was also imperative to the avoid the possibility of conflicting judicial decisions.”

The Delhi High Court is slated to hear the plea against the merger Oct 30. The Bombay High Court held the last hearing Monday.

The Ministry of Corporate Affairs passed its order Aug 22, 2007, approving the merger of Air India and Indian Airlines.