We present 1-3.4 mum near-IR array images of ESO Halpha 279, the optic
al emission line star proposed to be the exciting source of the bipola
r Herbig-Haro complex HH106/107 in Serpens. These images show the pres
ence of a close, bright infrared stellar companion to ESO Halpha 279 l
ocated 8.2'' due south. At 2 mum, no other sources are seen within app
roximately 1' of these stars suggesting that ESO Halpha 279 and its co
mpanion may form a pre-main sequence (PMS) binary. Our NIR photometry
has shown that the optical emission line star, ESO Halpha 279a, is a y
oung, PMS object possessing a strong thermal excess beyond 2 mum. Addi
tionally, 2 mum spectroscopy has revealed that ESO Halpha 279a possess
es very strong CO bandhead emission from 2.29-2.45 mum indicative of t
he presence of an active accretion disk and/or molecular outflow. The
companion source, ESO Halpha 279b, was found to be extremely red with
a J-K approximately 7. Spectroscopy showed that it possesses strong CO
bandhead absorption. From both the relative strengths of the deredden
ed spectral features and evidence provided by the near-IR photometry,
we suggest that ESO Halpha 279b is likely not a PMS companion to ESO H
alpha 279a, but rather it is a highly reddened (A(V)=30-40) background
M5 III giant. This result emphasizes the extreme care that needs to b
e taken when using infrared imaging data to study the frequency of bin
aries amongst PMS stars.