New Delhi, After disinvestment and acquisition of Tata Group in January 2022, Air India Limited (AIL) will cease to be a State or its subsidiary under Article 12 of the Constitution, and no case for alleged violation of fundamental rights will lie against it. The Supreme Court gave its verdict on Thursday.
The apex court dismissed the appeals filed against the Bombay High Court's September 20, 2022 judgment, in four writs filed by some employees of AIL over alleged stagnation in wages and non-promotion and delay in payment of wage revision. The petitions were disposed of. outstanding, among others.
The top court said the petitions filed before the high court claim violation of Articles 14 (equality before law), 16 (equality of opportunity in matters of public employment), and 21 (protection of life and personal liberty) of the Constitution. Has been done
A bench of Justices BR Gavai and Sandeep Mehta said that the High Court has disposed of the petitions on the ground of non-maintainability of the writ petition due to privatization of AIL.It said that there is no dispute that the Government of India has lost its administrative control or deep overarching control over the private entity after the transfer of its 100 per cent stake to Tales India Pvt. Ltd. Therefore, "the Company shall, after its disinvestment, cease to have such Can't do it." After being acquired by a private company, they are now being considered as the state.
"Thus, undoubtedly, respondent No. 3 (AIL) ceases to be a State or its instrumentality within the meaning of Article 12 of the Constitution of India after its disinvestment," it said.
The bench said that once AIL does not fall within the scope of the definition of State within the meaning of Article 12 of the Constitution, it cannot be subject to the writ jurisdiction of the court under Article 226 of the Constitution.
"Respondent No. 3 (AIL), the former government-run airline, which has been acquired by the private company Tales India Pvt. Ltd., is unquestionably not performing any public duty as it has acquired the government company Air India Ltd. .The purpose of commercial operations is clear and simple and thus no writ petition against respondent No. 3 (AIL) is maintainable,” I said.
The top court said that on the date of filing of the writ petitions before the High Court, AIL was a government entity and the petitions were decided after considerable delay, by which time the company had already been disinvested and taken over by a private company. . Player.
It said that since AIL has been disinvested and has assumed the character of a private entity performing no public functions, the High Court cannot exercise extraordinary writ jurisdiction to issue writ to such private entity .
"(The Division Bench of the High Court) has taken care to protect the rights of the appellants to seek remedies and thus, it cannot be said that the Appellants are unfit in the case. It is only that the Appellants would have had their “Approach some other forum for their resolution,” the decision said.,
"By any stretch of the imagination, the delay in disposal of the writ petitions could be a ground for continuing and maintaining the writ petitions because the forum, i.e., the High Court where the writ petitions were instituted could not have issued the writ to the private respondent. Co, which had changed hands in the intervening period,'' it said.
The bench said that the approach adopted by the High Court in denying equitable relief to the appellants and compelling them to approach the appropriate forum to express their grievances was the only appropriate and acceptable approach.
"In view of the discussion hereinabove, we find no reason to adopt a different approach from that adopted by the Division Bench of the Bombay High Court in upholding and dismissing the preliminary objection to the maintainability of the writ petitions filed by the appellants. Rejecting the appeal, the top court said, "It is not maintainable."
The bench said that on October 8, 2021, the Center announced that it had accepted the bid of Tales India Private Limited to buy 100 per cent of its shares in AIL.It further said that as per the share purchase agreement signed with Tales India Private Limited on January 27, 2022, 100 per cent equity shares of the Government of India in AIL were purchased by the private company and AIL was privatized.
The apex court dismissed the appeals filed against the Bombay High Court's September 20, 2022 judgment, in four writs filed by some employees of AIL over alleged stagnation in wages and non-promotion and delay in payment of wage revision. The petitions were disposed of. outstanding, among others.
The top court said the petitions filed before the high court claim violation of Articles 14 (equality before law), 16 (equality of opportunity in matters of public employment), and 21 (protection of life and personal liberty) of the Constitution. Has been done
A bench of Justices BR Gavai and Sandeep Mehta said that the High Court has disposed of the petitions on the ground of non-maintainability of the writ petition due to privatization of AIL.It said that there is no dispute that the Government of India has lost its administrative control or deep overarching control over the private entity after the transfer of its 100 per cent stake to Tales India Pvt. Ltd. Therefore, "the Company shall, after its disinvestment, cease to have such Can't do it." After being acquired by a private company, they are now being considered as the state.
"Thus, undoubtedly, respondent No. 3 (AIL) ceases to be a State or its instrumentality within the meaning of Article 12 of the Constitution of India after its disinvestment," it said.
The bench said that once AIL does not fall within the scope of the definition of State within the meaning of Article 12 of the Constitution, it cannot be subject to the writ jurisdiction of the court under Article 226 of the Constitution.
"Respondent No. 3 (AIL), the former government-run airline, which has been acquired by the private company Tales India Pvt. Ltd., is unquestionably not performing any public duty as it has acquired the government company Air India Ltd. .The purpose of commercial operations is clear and simple and thus no writ petition against respondent No. 3 (AIL) is maintainable,” I said.
The top court said that on the date of filing of the writ petitions before the High Court, AIL was a government entity and the petitions were decided after considerable delay, by which time the company had already been disinvested and taken over by a private company. . Player.
It said that since AIL has been disinvested and has assumed the character of a private entity performing no public functions, the High Court cannot exercise extraordinary writ jurisdiction to issue writ to such private entity .
"(The Division Bench of the High Court) has taken care to protect the rights of the appellants to seek remedies and thus, it cannot be said that the Appellants are unfit in the case. It is only that the Appellants would have had their “Approach some other forum for their resolution,” the decision said.,
"By any stretch of the imagination, the delay in disposal of the writ petitions could be a ground for continuing and maintaining the writ petitions because the forum, i.e., the High Court where the writ petitions were instituted could not have issued the writ to the private respondent. Co, which had changed hands in the intervening period,'' it said.
The bench said that the approach adopted by the High Court in denying equitable relief to the appellants and compelling them to approach the appropriate forum to express their grievances was the only appropriate and acceptable approach.
"In view of the discussion hereinabove, we find no reason to adopt a different approach from that adopted by the Division Bench of the Bombay High Court in upholding and dismissing the preliminary objection to the maintainability of the writ petitions filed by the appellants. Rejecting the appeal, the top court said, "It is not maintainable."
The bench said that on October 8, 2021, the Center announced that it had accepted the bid of Tales India Private Limited to buy 100 per cent of its shares in AIL.It further said that as per the share purchase agreement signed with Tales India Private Limited on January 27, 2022, 100 per cent equity shares of the Government of India in AIL were purchased by the private company and AIL was privatized.
