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INDIAN AIRLINES OFFICERS' ASSOCIATION versus INDIAN AIRLINES LTD. & ORS.

Citation: [2007] 8 S.C.R. 655 · Decided: 30-07-2007 · Supreme Court of India · Bench: H.K. SEMA · Disposal: Dismissed

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Judgment (excerpt)

INDIAN AIRLINES OFFICERS' ASSOCIATION 
A 
v. 
INDIAN AIRLINES LID. & ORS. 
JULY 30, 2007 
[H.K. SEMA AND V.S. SIRPURKAR, JJ.] 
B 
Service Law: 
Constitution of India, 1950; Article 14: 
c 
Service conditions-Scheme of merger of V ayudoot with Indian Airlines 
and Air India-Seniority and promotions of employees of Vayudoot in Indian 
Airlines vis-a-vis Air India-Discrimination-Held: Merger of Vayudoot and 
absorption of its employees in Indian Airlines and Air India were two 
completely independent processes commenced and ultimately certain decision D 
in connection thereof concerning seniority and promotion have been taken-
Raising of demands by the employees of Vayudoot absorbed in Indian Airlines 
concerning promotion prospects but no such demands raised by the employees 
of V ayudoot absorbed in Air India-Besides, employees of V ayudoot absorbed 
as fresh appointee in Air India, however, in case of Indian Airlines they wer~ 
placed in the bottom of each grade/category of posts-Thus, Air India and E 
Indian Airlines are not comparable to each other so far as absorption of 
employees of V ayudoot in these two organizations is concerned-Merely 
because some employees of Indian Airlin~s would be affected adversely in 
terms of future chance of promotion, the whole Schefl!e of merger could not 
be rejected as discriminatory or arbitrary. 
Integration of employees of Vayudoot in Indian Airlines-Necessity 
of-Held: It was necessary in order to resolve the grievances of substantial 
number of employees of Vayudoot. 
Absorption of employees of Vayudoot in Indian Airlines and Air India 
without consulting them-Principles of Natural Justice-Violation of-Held: 
The Policy of merger formulated in conformity with the principles of law, 
functional similarity of the posts in two Organisations avoiding undue 
advantage to some and undue hardship to others-Merely because 
appellant-Union was not called upon for direct negotiations in the decision 
655 
F 
H 
656 
SUPREME COURT REPORTS 
[2007) 8 S.C.R. 
A making while formulating the Policy, it cannot be said that the Policy makers 
were not alive to the welfare ·of the employees-There is no arbitrariness in 
th~ Policy besides equities between the two Organisations have been properly 
balanced-This is not a case where the principles of natural justice could 
be brought in-Administrative Law-Principles of Natural Justice. 
B 
The Government of India took a policy decision to merge Vayudoot with 
· •ndian Airlines and Air India. Initially, a separate department was created in 
Indian Airlines called 'Short Haul Operations Department' (SHOD) for 
absorption of erstwhile Vayudoot employees in terms of certain conditions. 
Accordingly, the appointment orders were issued in favour of the Vayudoot 
C employees appointing them in SHOD. However, after their absorption in 
SHOD, the employees of Vayudoot' started raising demands for better 
promotional prospects. It was decided by the Central Government to merge 
them in Air India and Indian Airlines. A scheme of merger was formulated 
accordingly. 
However~ the employees of Vayudoot who opted for their 
absorption in Indian Airlines raised various demands concerning their service 
D conditions. A meeting was held at the instance of Secretary, Civil Aviation to 
resolve these demands. Thereafter, another meeting was held.between the 
y 
officers of Ministry of Civil Aviation and the representatives of Indian 
Airlines. It was decided that unless and until SHOD employees were merged 
in Indian Airlines, they would have no legal rights to raise demands, and 
E therefore, their merger was agreed as suggested in earlier meeting. It was 
also resolved that Indian Airlines should take necessary steps of merger of 
SHOD employees in the mainstream of Indian Airlines not only on individual 
basis but on the basis of various classes/categories of employees. Accordingly, 
the Ministry .advised Indian Airlines to take necessary action as per the 
minutes issued by the Ministry. However, the employees of Indian Airlines 
· F felt that though in the meeting, the decision taken was that SHOD employees 
'r-' 
were to be adjusted at the "entry point" but the minutes reflected as if they 
were to have the "horizontal entry". Aggrieved by the decision of the Central 
Government they had challenged the decision of the Government by filing writ 
petitions. Another writ petition was filed by an individual who was working 
G as Deputy Manager in the Vayudoot Kar

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