Air India Disinvestment: Madras High Court Asks Centre To Produce Share Purchase Agreement

In a plea preferred by one of the trade unions of Air India against its disinvestment, the Madras High Court has directed the Central government to produce the contentious share purchase agreement before the court.

Justice V. Parthiban took note of the petitioner's argument that the share purchase agreement is instrumental in deciding the case that involves high stakes for all parties concerned.

"The learned Additional Solicitor General is therefore directed to furnish a copy of the share purchase agreement to the Court on or before the next date of hearing," it ordered.

Further, on the request of the petitioner employees' union to go through the contents of the counter statement filed by the Union and file a rejoinder if necessary, the matter was adjourned to 21st January for disposal.

The benefit of the interim order for the retention of accommodation and medical facilities has also been extended till the next date of hearing. 

In the order, the court noted that the matter must be disposed of on a priority basis since it pertains to the day to day loss suffered by the Union of India. The parties were also directed to ensure that the pleadings are completed.

Additional Solicitor General R Shankaranarayanan, on the other hand, submitted that pendency of the matter is not in public interest. "The Union of India accumulates loss because an amount of Rs 20 crores is given to Air India every day. Had the Government not paid the said amount to the Airlines, the matter would have reached NCLT", he submitted.

He referred to a recent decision of the Delhi High Court, dismissing the plea filed by BJP MP Subramanian Swamy against the disinvestment process.

He further submitted that consent of Talace Private Ltd (the highest bidder) would be required before placing on record the share purchase agreement.

Advocate NGR Prasad appeared for the airline, Advocate Anuradha Dutt appeared for Tata Group.

Background

Air Corporation Employees Union, which claimed to be the largest trade union of Air India Limited with a membership of over 5,000 employees, had moved the Madras High Court seeking to restrain the Central Government from proceeding further with the process of disinvestment of Air India until steps are taken to protect the rights of the national carrier's staff.

The petitioner Union submitted that the share purchase agreement between the Government of India and Talace Private Limited was signed without any prior consultation and has not been disclosed to them, which violates the employees' right to know under Article 19(1)(a). The plea, therefore, sought a writ of mandamus forbearing 100% disinvestment and transfer of Government's stake in the national carrier, until the uncertainties regarding wage revision due from 2007, leave encashment terms, and job security etc. post disinvestment is taken care of after due consultation with the employees.

Case Title: Air India Corporation Employees Union v. Union of India & Ors. & Connected Matters

Case No: WP/25568/2021 (Service)

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