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2006 Supreme(Del) 253

High Court Of Delhi
INDIAN AIRLINES LTD - Appellant
Versus
UOI - Respondent
Decided On : 02/08/2006

Headnote:Constitution of India, 1950 Article 226 - Merger of public sector company with another company - The employees absorbed in a separate department Absorption of employees on humanitarian ground rather than terminating their services - The decision not suffering from Wednesbury arbitrariness - The decision could not be said to be outrageous in defiance of logic or accepted moral standards Letter patent appeal allowed and the decision of ld. Single Judge set aside.

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MARKANDEYA KATJU, C. J.

( 1 ) THESE writ appeals arise out of the common judgment of the learned Single Judge dated 21. 5. 2004 in four writ petitions, three filed by employees working under the Indian Airlines since beginning of their service, and one filed by the employees working under Vayudoot Limited which has been since taken over by Indian Airlines.

( 2 ) THE facts in detail have been set out in the impugned judgment of the learned Single Judge and hence we are not repeating the same except where necessary.

( 3 ) THE facts of the case are that Vayudoot Limited was incorporated as a private limited company in the year 1981. It was converted into a public limited company in the year 1983 with shares jointly owned by Indian Airlines and Air india. On account of mounting losses and outstanding liabilities it was decided by the Government of India to merge Vayudoot Limited with Indian Airlines by its letter dated 25. 5. 93 addressed to Indian Airlines, Air India, Vayudoot Limited, international Airports Authority of India and the National Airports Authority of india.

( 4 ) IT was also decided by letters of the Ministry of Civil. Aviation and Tourism dated 22. 11. 93 and 24. 5. 94 to absorb the Vayudoot Ltd. employees in Air India, indian Airlines, National Airports Authority of India, PHHL, IGRUA and HCI.

( 5 ) IN the letter dated 24. 5. 94 the Ministry of Civil Aviation and Tourism, government of India it was clearly stated that the following relaxation/benefits will be given to the Vayudoot Ltd. employees on joining the new organizations: 1 ). Protection of basic pay. 2 ). Probation period and medical examination will be waived. 3 ). Appointment will be subject to three years satisfactory record of service. 4 ). Leave balance of the employees will be transferred to the new organization.

( 6 ) SERVICE rendered in Vayudoot will be reckoned for the purpose of gratuity, providend Fund, loans and advances, medical facilities and SOL passages.

( 7 ) SUBSEQUENTLY, the Ministry of Civil Aviation by order dated 24. 5. 94 constituted a committee to oversee the absorption process of Vayudoot employees. The members of the Committee have been mentioned in paragraph 10 of the impugned judgment of the learned Single Judge.

( 8 ) ON the same date i. e. , 24. 5. 94 another circular was issued creating a separate Department under the Indian Airlines called short Haul Operations department (SHOD ). This order has been quoted in paragraph 11 of the impugned judgment and hence we are not repeating the same.

( 9 ) THE employees of Vayudoot Ltd. absorbed in Indian Airlines in the separately created department called SHOD started claiming right to be integrated with the existing employees of Indian Airlines. They claimed the right to be promoted to the next higher post. They also claimed that while integrating their service on the corresponding posts with the existing employees of Indian Airlines, length of service rendered by them under Vayudoot Ltd. be reckoned. This was opposed by the existing employees of Indian Airlines on the ground that there were recruitment rules governing appointment and promotion under Indian Airlines, whereas under Vayudoot Ltd. there were no such notified recruitment rules and promotions were being effected on ad hoc basis. This had resulted in employees of vayudoot Ltd. being granted accelerated promotions. For instance, the employee of Vayudoot Ltd. who was inducted to post A earned promotion to a post B, and further promotion to the next higher post C in say, seven years. A corresponding employee of Indian Airlines appointed to the corresponding post A earned no promotion or at best earned promotion to the corresponding post B. Hence, integration as prayed for by the employees of Vayudoot Ltd. would be unjust to the existing employees of Indian Airlines.

( 10 ) IT appears that subsequently negotiations were held for sorting out the differences and at a meeting held on 10. 3. 98 certain points were noted, as sta













































































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