Acting on a petition moved by the National Aviation Company of India Ltd, challenging the merger of Indian and Air India, the Supreme Court on Tuesday ordered an interim stay on the proceedings pending before the Bombay High Court.

In its petition, the company also sought consolidation of the cases pending before various high courts, challenging the merger of the two state carriers. Following the petition, the Bench comprising Justices S B Sinha and H S Bedi issued notice to the Ministry of Corporate Affairs and Registrar of Companies. Notices have also been served to the Indian Commercial Pilots Association, Indian Airlines Officers Association, Air Corporation Employees Union, Airlines Radio Officers and Flight Operation Officers Association, Air India and Indian besides other respondents.

National Aviation Company of India Ltd had sought transfer of the petition from the Bombay High Court to the Delhi High Court so as “to avoid the multiplicity of proceeding and possible conflict of decisions”.

According to the company, the two other petitions by Indian Aircraft Engineers Association and Air India Cabin Crew Association were filed in Delhi High Court prior to the petition by Trade Union Joint Action Committee of Indian Airlines Employees and others in the Bombay High Court.

The petitioners before the high courts had challenged the constitutional validity of Section 620 of the Companies Act and issuance of Notification dated February 2, 1978, which conferred powers on the Centre to usurp judicial functions assigned to the High Court and exempted merger of Government companies from judicial scrutiny. The matter is scheduled to come up for hearing on October 30. The notification had also taken away the right to appeal against an order allowing any such merger.

... contd.