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NEW DELHI: The Supreme Court on Monday agreed to consider afresh whether Airports Economic Regulatory Authority (AERA) had jurisdiction to determine tariff for cargo and ground handling activities at Indira Gandhi International Airport (IGIA) in New Delhi much to the chagrin of operator, Delhi International Airport Ltd, which cited a 2006 agreement, subsequent conduct of AERA, and a SC judgment to refute the claim.
Attorney general R Venkataramani persuaded a bench of Chief Justice D Y Chandrachud and Justice J B Pardiwala to seek response of DIAL on AERA’s appeal against an appellate tribunal’s January 13 decision holding that cargo and ground handling activities were non-aeronautical in nature and fixation of its tariff would be left to the operator.
Appearing for DIAL, senior advocate Maninder Singh said AERA as per the 2008 statute was tasked to determine tariff for aeronautical services at major airports. The TDAST had set aside AERA’s two orders – March 17, 2021 and May 18, 2021 – directing DIAL’s sub-concessionaires, who provide Cargo and Ground Handling Services at IGIA to submit their multi-year tariff proposals for determination of tariff for CGH Services for the Third Control Period.
Senior advocate A M SInghvi said there is nothing in AERA’s appeal except the appearance of AG. Supplementing the argument, Singh said these sub-concessionaires have been granted the right to provide CGH Services by DIAL in accordance with the provisions of the Operation, Management and Development Agreement (OMDA) of 2006, which treats CGH services as non-aeronautical, ousting AERA’s jurisdiction to determine tariffs for these services. He said the government in a subsequent agreement had assured sovereign promise of letting DIAL decide tariff for cargo and ground handling and termed the AERA’s stand to be in breach of these agreements.
The bench took into account Singh’s argument that the above position too has been fortified by a judgment of the SC last year but said that it would attempt to read in clarity into the contentious issue, which required a fresh look. It posted the AERA’s appeal for final disposal in the last week of August.
Attorney general R Venkataramani persuaded a bench of Chief Justice D Y Chandrachud and Justice J B Pardiwala to seek response of DIAL on AERA’s appeal against an appellate tribunal’s January 13 decision holding that cargo and ground handling activities were non-aeronautical in nature and fixation of its tariff would be left to the operator.
Appearing for DIAL, senior advocate Maninder Singh said AERA as per the 2008 statute was tasked to determine tariff for aeronautical services at major airports. The TDAST had set aside AERA’s two orders – March 17, 2021 and May 18, 2021 – directing DIAL’s sub-concessionaires, who provide Cargo and Ground Handling Services at IGIA to submit their multi-year tariff proposals for determination of tariff for CGH Services for the Third Control Period.
Senior advocate A M SInghvi said there is nothing in AERA’s appeal except the appearance of AG. Supplementing the argument, Singh said these sub-concessionaires have been granted the right to provide CGH Services by DIAL in accordance with the provisions of the Operation, Management and Development Agreement (OMDA) of 2006, which treats CGH services as non-aeronautical, ousting AERA’s jurisdiction to determine tariffs for these services. He said the government in a subsequent agreement had assured sovereign promise of letting DIAL decide tariff for cargo and ground handling and termed the AERA’s stand to be in breach of these agreements.
The bench took into account Singh’s argument that the above position too has been fortified by a judgment of the SC last year but said that it would attempt to read in clarity into the contentious issue, which required a fresh look. It posted the AERA’s appeal for final disposal in the last week of August.
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