NACIL asks Supreme Court to consolidate cases challenging AI-IA merger

New Delhi: National Aviation Company of India Ltd (NACIL), the new company formed after the merger of Indian and Air India, has asked the country''s apex court to consolidate the cases challenging the merger of the two state carriers.

A two-judge bench of the Supreme Court, comprising Justice SB Sinha and Justice HS Bedi, has issued notices to the ministry of corporate affairs, the Registrar of Companies, Indian Commercial Pilots Association, Indian Airlines Officers Association, Air Corporation Employees Union, Airlines Radio Officers and Flight Operation Officers Association, Air India, Indian and others.

The bench has also stayed the proceedings pending before the Bombay High Court.

NACIL had sought transfer of the petitions from the Bombay High Court to the Delhi High Court so as "to avoid the multiplicity of proceeding and possible conflict of decisions."

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 that conferred powers on the Centre to usurp the judicial functions assigned to the High Court and exempted merger of government companies from judicial scrutiny.

The notification had also taken away the right to appeal against an order allowing any such merger.

The matter is listed before the Delhi High Court on October 30.