Thread by @lawbarandbench

[Air India Disinvestment] At 12PM, #MadrasHighCourt will continue hearing a plea by the Air Corporation Employees Union seeking protection of their rights before the disinvestment proceeds.

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#MadrasHC @airindiain

Hearing to begin shortly. The Central Government is expected to present its case to Justice V Parthiban today.

#MadrasHC #AirIndia

Hearing begins.

#MadrasHC #AirIndia

ASGI R Sankaranarayanan: Solicitor General Tushar Mehta says he'll be here in five minutes.

Sr. Adv. Vaigai: Mr. Prasad can be heard till then.

Court: Is he supporting you?

Sr. Adv. Vaigai: So far he was supporting us.

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Justice Parthiban: Is it required to look into provisions of the Companies Act?

Sr. Adv. Vaigai: We were under the impression that there will be a new employer! It was not clear at all.

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Solicitor General Tushar Mehta begins submissions: Every day, government was incurring loss of crores of Rupees.

The government must have infused about 1 Lakh Crore in this sinking company.

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SG Mehta: The best possible decision was disinvestment. It does not result into any transfer of undertaking.

They say, till our industrial disputes are satisfied- don't allow disinvestment.

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SG Mehta: Whenever disinvestment takes place, there would be change in service conditions of employees.

I am before Your Lordships, I must satisfy your conscience that we have done everything to ensure that, to the extent possible, interest of the workmen is protected.

SG Mehta: What we did, we followed deliberations, consulted, we called the twenty unions.

Only one is here, other nineteen are satisfied.

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SG Mehta: The committee was not an exercise to reach an agreement between Air India and its employees.

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SG Mehta: It is not an agreement! Does not give rise to an enforceable right.

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SG Mehta: These are committee's suggestions, not an agreement where a prayer for mandamus would lie.

Takes Court to Union of India's reply.

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SG Mehta: My Ld. Friend yesterday placed reliance on a 2018 office memorandum regarding procedure for Voluntary Retirement.

Let me make it clear, it was not in the right context.

Not only loss making, but almost a dying company on a ventilator we are dealing with.

SG Mehta: Firstly, it is a broad guideline. Secondly, this is for financially sound companies.

This is a memo for a broad guideline, ultimately leaving it for the concerned government and CPSC to decide.

#MadrasHC #AirIndia

SG Mehta: This provision is not a mandate. It also says that this will not apply to sick companies.

This will not apply for sick or loss making.. in any case, two startling points.

#MadrasHC #AirIndia

SG Mehta: It does not deal with disinvestment. Only when company is closing down or tries to stagger employee strength to stay afloat.

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J. Parthiban: There is one more dimension- One a given day, it changes hands, then it loses the character of a PSU.. whether the application of OM will be there at all?

SG Mehta: Will not be. Right to be continued is not a right.

#MadrasHC #AirIndia

SG Mehta: You have no fundamental right to continue working only under the State. The minute the beginning day comes, it ceases to be a CPSC.

We have done the best out of it for the workmen. I am pointing out only to satisfy Your Lordships conscience.

#MadrasHC #AirIndia

J. Parthiban: They are not challenging the disinvestment, they are merely saying protect our rights.

SG Mehta: They are saying don't allow disinvestment till our industrial disputes are satisfied. That is an anathema to the concept of disinvestment.

#MadrasHC #AirIndia

SG Mehta: There will be some industrial dispute or other perennially. I am the Central Government, Air India- I must satisfy the Court's conscience.

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SG Mehta reads out parts of the Share Purchase Agreement that protect workmen's rights.

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SG Mehta: What we have provided is don't do anything for one year, provide best possible VRS. Everything can't be stipulated at this stage.

These are complex economic decisions. The maximum benefit is sought to be serviced for the employees.

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SG Mehta: We cannot forget that ultimately this exercise is being undertaken in public interest.

We cannot offer them a deal that they have to refuse. At least the tax payer money is saved.

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SG Mehta: This takes care of current employees, so far as past employees are concerned- the Central Government has taken complete responsibility.

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SG Mehta: I must clarify, yesterday there was some confusion, the Central Government medical facilities- it provides both outpatient and inpatient facilities.

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SG Mehta: There are only 500 residential quarters, everyone is not getting residential quarters. And those who are not getting, they are entitled to HRA.

#MadrasHC #AirIndia

J Parthiban: Please check your figures, I dont think it is 500. Because long time back I lived close to Air India quarters and it was a big colony.

SG Mehta: I stand corrected, there are 1850 houses out of which 1359 have given consent.

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SG Mehta: Can I continue after lunch?

J Parthiban: Yes, we will continue at 2:30.

- Breaks for lunch -

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- Hearing resumes -

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SG Mehta: Most of the employee segment is covered by the government scheme.

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SG Mehta: We are running loss of 20 Crores a day, we cannot distribute freebies like this! but if there are industry practices, it will be done.

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SG Mehta: accommodation is not a condition of service, it is given from the beginning on availability basis. When it is not available, we give HRA.

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SG Mehta takes Court through judgments.

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SG Mehta reads from Balco Employees Union v Union of India.

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SG Mehta: This is the sum & substance of all judgments. Change in service condition at the time of disinvestment is an incidence of service.

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SG Mehta discusses Section 9 (a) of the Industrial Disputes Act.

SG Mehta: After a year, restructuring may take place. In that case 9(a) may be acted on by employees.

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SG Mehta: The company continue, if there is any dispute they can approach appropriate forum.

- Solicitor General concludes arguments -

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Adv Anuradha Dutt, for Tata Group: We will abide by the terms of the agreement and I am bound in law to do so.

Solicitor General: My submissions may be treated as Air India's

#MadrasHC #AirIndia

Sr Adv R Vaigai: I am glad that the Ld. Solicitor didn't go into the technical arguments of maintainability etc. That was gracious of him.

One positive outcome has been, the clarity that has been provided for T&C which we did not have until now.

#MadrasHC #AirIndia

Sr Adv R Vaigai: There are four areas where we are concerned..

J Parthiban: The, why don't you save the trouble of writing a detailed judgment?

Sr Adv R Vaigai: We are concerned on housing, medical benefits and passage rights.

#MadrasHC #AirIndia

Sr Adv R Vaigai: In the Share Purchase Agreement, for existing employees medical facilities are withdrawn. This cannot be made a part of the share purchase agreement.

If the new employer wants to make a change, let them. It is a condition of service.

#MadrasHC #AirIndia

Sr Adv R Vaigai: "Industry practice and norms" Therefore, the existing benefits are stopped. The new employer is told that existing benefits are stopped, you can give whatever you want.

#MadrasHC #AirIndia

Sr Adv R Vaigai: medical benefits are given only to retirees, not existing employees.

This is precisely what was argued in the LIC case.

#MadrasHC #AirIndia

Sr Adv R Vaigai takes Court through LIC v. DJ Bahadur: You cannot say that the process of disinvestment overrides the Industrial Disputes Act.

If the new employer has to change, he has to comply with ID Act. The same applies to existing employer also.

#MadrasHC #AirIndia

Sr Adv R Vaigai: We are not contentious of the principles laid down by the #SupremeCourt.

But when it affects with our existing rights, you have to comply with the law. No commercial law says that you can throw to the wind ID Act.

#MadrasHC #AirIndia

Sr Adv R Vaigai: These crystallised rights cannot be changed unless you give proper notice under the Industrial Disputes Act. There has to be a negotiation, adjudicated award or a settlement.

Only that can replace these rights, not a share purchase agreement.

#MadrasHC

Sr Adv R Vaigai: As far as revision of wages are concerned, our pending demands are there but they are not unfortunately crystallised.

#MadrasHC #AirIndia

SG Mehta: We cannot make any changes in the Share Purchase Agreement, nor can she challenge.

So far as medical is concerned, retired people and special category we have taken responsibility.

#MadrasHC #AirIndia

#MadrasHighCourt reserves orders.

#AirIndia