The Delhi high court on Thursday sought response from the Centre on a petition challenging the merger of Air India and Indian Airlines.
A Bench comprising Chief Justice M K Sharma and Justice Sanjeev Khanna, after hearing the arguments of Cabin Crew Association of Air India which challenged the merger, directed the Centre, Air India and Indian Airlines to file their response by October 30 when the matter will be taken up by it for further hearing.
Challenging the merger, senior advocate Arun Jaitely, appearing for the association said, "the merger of Indian (Airlines)and Air India stands on different footing from other mergers. These companies have been incorporated by statute and they can't merged without amending the law."
He also referred the Supreme Court judgement in HPCL and BPCL merger case in which 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 decision on the merger of two separate companies incorporated under law," Jaitely said while challenging the notification issued by the government on the merger of two state-run carriers.
Another petition filed by the engineer's association of these carriers, seeking clearance of their wage arrears, will come before the court on Friday.
The association alleged that Air India owed more than Rs 350 crore (Rs 3.5 billion) as arrears towards wages and other incentives, whereas Indian Airlines owed more than Rs 1,100 crore (Rs 11 billion) to the employees.