Air India engineers' body opposes merger, moves HC

New Delhi: The Air India Aircraft Engineers’ Association has moved the Delhi High Court challenging merger of the Air India and Indian Airlines with the National Aviation Company.
In its petition filed through advocate ML Lahoty, the association has said its member employees are the creditors of Air India and Indian Airlines (transferor companies). Their consent to the terms of the scheme of amalgamation is mandatory under provisions of Section 391 of the Companies Act, 1956.
As their consent has not been obtained, the scheme of amalgamation suffers from serious legal infirmity, said the petitioner association. The petitioner has said although the talk of amalgamation was going on for quite some time, but its members, despite being important stakeholders as well as creditors of the transferor companies, were kept totally ignorant till July 19 when it became known to them through the advertisement which appeared in The Times of India. Against that, it has moved the authority designated to carry on the proceedings under Sections 391 and 394 of the Companies Act, the association said. On August 7, the association told the designated authority that their members were creditors of the transferor companies.
10/09/07 Sanjay K Singh/Economic Times

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Categories: Air India - International Sep 2007, NACL Sep 2007