Document Fragment View

Matching Fragments

23. The Division Bench held that:

"....In fact OMDA makes an express reference to the AAI Act. Consequently, consistent with the observations of the Supreme Court in the SAIL case, the exercise by DIAL of the functions and powers of DIAL in relation to the Delhi airports is traceable to Section 12A of the AAI Act and therefore in relation to the Delhi airports the Central Government will continue to remain the appropriate government. Further, the provisions of the AAI Act show that there is extensive control of the Central Government over the functioning of AAI. The authority of the Central Government is conferred by the statute itself. Therefore, it is not correct to contend that consequent upon OMDA, the establishment of AAI i.e. the Delhi airports ceased to be under the control of the Central Government.
Therefore, the inescapable conclusion is that consistent with the observations in the SAIL case, the statute itself contemplates the Central Government to be the appropriate government notwithstanding that there has been a privatization of the management of the Delhi airports. By being brought within the ambit of Section 12 A of the AAI Act, even the private actor i.e. DIAL has been brought within the ambit of the control and authority of the Central Government. In fact, there is an express reference to the AAI Act in the body of the OMDA itself. If there was no provision like Section 12 A in the AAI Act, there could not have been an OMDA between AAI and DIAL."

47. The Constitution Bench of this Court in Steel Authority of India Limited & Others etc. etc. v. National Union Water Front Workers and Others etc. etc., (2001) 7 SCC 1, popularly known as 'SAIL' case held:

"Where the authority, to carry on any industry for or on behalf of the Central Government, is conferred on the government company/any undertaking by the statute under which it is created, no further question arises."

49. If the passage from SAIL's case is to be taken at its face value, it would appear that AAI clearly functions "under the authority" of the Central Government, and that the Central Government is, therefore, the "appropriate government" under the terms of CLRAA and ID Act.

50. In the impugned judgment, the Division Bench correctly held that "the provisions of the AAI Act show that there is extensive control of the Central Government over the functioning of AAI." Section 12A reveals control of the Central Government on AAI. AAI has to obtain approval from the Central Government before delegating any of its functions to third parties, such as DIAL. This clearly indicates that the Central Government has complete control over AAI. Sections 2, 6 and 10 of the AAI are further examples of governmental reservations of authority. The Central Government retains its statutory control over AAI. In the impugned judgment, the High Court correctly came to the conclusion that "the authority of the Central Government is conferred by the statute itself."