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Informist, Friday, Oct. 18, 2024

 

--SC: Airport body plea on non-aeronautical services' tariff maintainable 

--CONTEXT: TDSAT held airports body can't fix non-aeronautical svcs tariff

--SC lists airport body's plea against TDSAT order for hearing on merits 

 

NEW DELHI – The Supreme Court on Friday held as "maintainable" the Airports Economic Regulatory Authority of India's appeal regarding its power to regulate tariff on non-aeronautical services. The Bench, led by Chief Justice of India D.Y. Chandrachud, said the Airports Economic Regulatory Authority's plea against the order of Telecom Disputes Settlement and Appellate Tribunal in January 2023, will be decided on merits.

 

The top court was hearing an appeal against an order of the appellate tribunal, which held that the Airports Economic Regulatory Authority does not possess the authority to impose tariffs on ground handling services and cargo handling services. The appellate tribunal said cargo handling services and ground handling services are non-aeronautical services, irrespective of whether the same is provided by Delhi International Airport Ltd and Mumbai International Airport Ltd or third party concessionaires or independent service providers.

 

The airport operators had questioned the regulatory authority's locus standi on taking the case to the top court. The airport operators questioned if it was possible for the regulator to be unbiased while contesting an adverse order against itself by a higher appellate authority. The regulator contested this and emphasised on the protection of public interest, ensuring competition among individuals, and regulation of tariffs. 

 

The appellate tribunal's order was passed on appeals from Delhi International Airport Ltd and Mumbai International Airport Ltd challenging the communications by Airports Economic Regulatory Authority Of India. The communications stated that ground handling services and cargo handling services will be non-aeronautical if they are rendered by airport operators, but, if these services are being rendered through airport operator's appointed contractor, they will be aeronautical services. The appellate tribunal had quashed these communications by its order in January 2023.  End

 

Reported by Surya Tripathi

Edited by Vandana Hingorani

 

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