Indian, Air India employees move Delhi HC to get arrears

NEW DELHI: The employees of state-run carriers Indian and Air India, which were merged recently, today moved the Delhi High Court demanding that their arrears be cleared by the new entity.

Justice Rekha Sharma, while hearing two petitions filed by Air India and Indian Airlines Aircraft Engineers' Associations, asked the new company to provide a copy of the merger order by September 10.

The legal formalities related to the merger were completed on August 27 and the new entity will be called National Aviation Company of India Ltd.

Appearing for the petitioners, their counsel L M Lahoty informed the court that Air India owes more than Rs 350 crore as arrears toward wages and other incentives, whereas Indian Airlines owes more than Rs 1,100 crore to the employees.

He also submitted before the court that the merger order was also silent about which company would clear the arrears.

Urging the court to declare the dissolution of both the companies as illegal, Lahoty submitted that proper procedures should have been followed.

He also informed the court that before the merger, the employees had filed a representation raising their objections before the Joint Secretary of Ministry of Corporate Affairs. However, no response has come to them so far, he alleged.

The High Court has fixed September 10 as the next date for hearing the matter