Air India moves SC against arbitral award to pay wage arrears to employees
This story was originally published at 19:40 IST on 17 April 2026
Register to read our real-time news.NEW DELHI – Air India Ltd. Friday moved the Supreme Court against two arbitral awards passed in 2016, asking the airline to pay arrears of about INR 580 million to aircraft engineers and technicians, along with interests. The matter came up for hearing on Friday, but Justice K.V. Viswanathan recused himself from the case. The case will now be heard on Apr. 24.
The case has its genesis in claims by 2,480 airline employees for arrears dating to Jan. 1, 1997. The dispute arose after Air India fixed notional wages from Jan. 1, 1997, but limited arrears with prospective effect from 2005.
The All India Aircraft Engineers Association and the Indian Aircraft Technicians Association moved an arbitral tribunal, as the settlements did not provide for payment of wage arrears from 1997, unlike those of their counterparts in other arms of Air India. The employees said that they were denied arrears for the period from 1997 to 2005.
The arbitral tribunal had asked the airline to pay wage arrears to its employees, noting that arrears were payable from 1997 and that the airline could not deny them. The tribunal held that Air India had unequivocally admitted to wage arrears, and the same were payable from 1997. The tribunal rejected Air India's argument regarding financial incapacity and cash-flow contingency and directed payment with interest and costs.
In an appeal by the airline, the Delhi High Court, on Mar. 20, said that the arbitral tribunal was competent to examine all issues necessary to adjudicate the dispute effectively. Challenging the high court's ruling, Air India moved the apex court. End
Reported by Surya Tripathi
Edited by Saji George Titus
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