A Bench comprising Chief Justice M K Sharma and Justice Sanjeev Khanna passed the order after hearing the arguments of Air India Cabin Crew Association that challenged the AI-IA merger.

Senior advocate Arun Jaitely, appearing for the association, said,''The merger of Indian Airlines and Air India stands on a different footing from other mergers. These companies have been incorporated by statute and they cannot be merged without the amendment to the law.'' He also referred to the court the merger case of the HPCL and BPCL in which the Supreme Court had held ''companies incorporated by a statute of Parliament cannot be merged without an approval of the legislative body''.

''How can a Joint Secretary be empowered to take a decision on the merger of two separate companies incorporated under law,'' Mr Jaitely asked while challenging the Centre's notification on the merger of the two airliners.