Bench: HON’BLE THE CHIEF JUSTICE, HON’BLE MR. JUSTICE J.B. HON’BLE MR. JUSTICE MANOJ MISRA
BA/31/2024
Case Title: AIRPORTS ECONOMIC REGULATORY AUTHORITY OF INDIA Versus DELHI INTERNATIONAL AIRPORT LTD. AND ORS
Case details: This appeal has been preferred by Delhi International Airport Limited referred as DIAL challenging the communications issued by the Respondent No. 1 Airport Economic Regulatory Authority. This appellant has entered into a contract with Airport Authority of India for Operation, Management and Development of Indira Gandhi International Airport.
Facts: – Airport Authority of India, in the interest of better management of Indira Gandhi International Airport, Delhi granted some of its functions being the function of Operating, Maintaining, Developing, Designing, constructing, upgrading, modernizing, financing and managing the IGI Airport to Delhi International Airport Limited
DIAL has entered into operation, Management and Development Agreement (OMDA) with AAI
Court Observed :- The primary issue in the case revolved around the methodology used by AERA in determining the tariffs for airport services. DIAL contested the manner in which AERA had calculated the tariffs, specifically the return on equity component and other financial issues related to airport operation costs.
Held by Court: – The Supreme Court upheld AERA’s methodology for determining airport tariffs, providing clarification on how the regulatory body should approach the calculation of tariffs. The court emphasized the role of AERA as a regulator tasked with balancing public and private interests, ensuring that the charges were fair to both the airport operator and the users. Taking into account the aforesaid facts, law, legally binding contractual agreements and judicial pronouncements, issued by the Respondent No. 1 are hereby quashed and set aside. These appeals are allowed and disposed of.
