A Division Bench of the Kerala High Court on Tuesday declined to stay further proceedings in pursuance to the Central government’s approval of grant of lease/concession on right of operation, management and development of the Thiruvananthapuram International Airport to Adani Enterprises Limited.
When a petition filed by the State government seeking to stay further proceedings in pursuance to the Centre’s approval of the lease /concession came up for hearing, the Bench comprising Justices K. Vinod Chandran and T.R. Ravi said the court was not inclined to consider hearing on the plea and it wanted a final hearing on the main pending writ petition challenging the decision of the Airport Authority of India (AAI) to grant the contract to Adani Enterprises Limited.
Adjourned to Sept. 15
The court then adjourned to September 15 the writ petition for final hearing.
The State government pointed out that the Supreme Court had set aside a judgment of the High Court dismissing the government’s writ plea against the AAI’s ‘Request for Proposal’ to grant the right of operation, management and development of the airport to Adani Enterprises Limited. The Supreme Court while passing the verdict had sent back the matter to the High Court for considering the government’s challenge on merit.
However, the Centre had now approved the lease in favour of the Adani group under Section 12A of the Airports Authority of India Act 1994. As a result, necessary contractual transactions would be entered into by it, the AAI and the company. In fact, the State government had substantial proprietary and other rights over the land on which the airport was constructed. Besides, as the grant of lease/concession had been approved when the matter was sub judice, the balance of convenience was in its favour, the State government said.
Centre-State dispute
The High Court, while dismissing the State government’s plea, observed that the dispute was between the State of Kerala and the Union government. Only the Supreme Court, and not High Courts, had jurisdiction in such Centre-State disputes. Kerala should have directly filed a suit under Article 131 in the Supreme Court, it observed
The grant of the right of operation, management and development of the airport to Adani Enterprises Limited, which had no previous experience in managing airports, was not in public interest and violated the provisions of the AAI Act as well as its proprietary right over the land where the airport was situated, the State government contended.
Its petition pointed out that the Centre had assured it in 2003 that taking into account the contribution being made by the State for the acquisition of additional land for the airport, it would be consulted at the time when a decision to privatise the management of the airport was taken. This assurance had been violated.
