The Delhi High Court dismissed the film division staff association's appeal against the Cabinet's decision to merge four film units, including the Children's Film Society (CFSI), Films Division (FD), National Film Archives of India (NFAI), and Directorate of Film Festivals, with the National Film Development Corporation (NFDC) on December 23, 2020, by expanding the Memorandum of Articles taken.
According to the petition, neither the employees' association nor the film media units' top staff members were contacted before the merger decision was made. Even after the ruling, the Union of India has not addressed the issue of personnel transfer from the four film units to NFDC, nor has it circulated any scheme, rules, or act relating to employee transfer.
While deciding on the plea, the court noted that the answer to a particular question from the court about whether any action had been done that had caused/affected their terms of service was negative.
The petitioner association's lawyer, Fozia Rahman, argued that the Union of India, through the Ministry of Home Affairs (MHA), should suspend or halt all subsequent measures related to the merger of the four cinematic media companies.