The National Company Law Tribunal (NCLT) in Chandigarh has greenlit the merger between Air India and Vistara, marking a significant step in the aviation industry.
Judicial Confirmation In its ruling on June 6, the NCLT approved a composite scheme of arrangement proposed by Talace Private Limited (the holding company of Air India) and Tata Sia Airlines Limited (the joint venture between Tata Sons Private Limited and Singapore Airlines Limited, operating Vistara).
Smooth Sailing The tribunal found no substantial obstacles, noting the approval from concerned shareholders, creditors, and regulatory authorities without any major objections.
Regulatory Compliance Notably, all necessary notices were served to statutory authorities, including the Ministry of Civil Aviation and the Directorate General of Civil Aviation (DGCA), ensuring compliance with regulatory requirements.
Timely Transition With a nine-month timeline set by the NCLT, the merger process and associated formalities are expected to be completed promptly, leading to the dissolution of the transferor companies.
Stakeholder Details According to the submitted synopsis, Tata Sons will hold a 73.38% stake in the merged entity, while Singapore Airlines will possess 25.1%. The remaining 1.52% will be held by SBICAP Trustee Company Limited on behalf of the Air India Employee Settlement Trust.
Legal Representation Advocates Atul V Sood and Bharat Apte represented the petitioner-companies, ensuring legal compliance throughout the process. Edward Augustine George, Vineet Khatri, and Yogesh Putney represented the Official Liquidator, Regional Director, and Income Tax Department, respectively.
By encapsulating these details, the article offers insights into the NCLT’s pivotal decision and its implications for the aviation sector.
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