The Supreme Court has ruled that the Airports Economic Regulatory Authority of India (AERA) can file appeals against orders of the Telecommunications Dispute Settlement and Appellate Tribunal (TDSAT). This decision allows AERA to challenge a TDSAT ruling that it cannot impose tariffs on services like cargo and ground handling at airports.
New Delhi: Today, on October 18th, the Supreme Court of India ruled that the Airports Economic Regulatory Authority of India (AERA) is not barred from filing appeals against orders passed by the Telecommunications Dispute Settlement and Appellate Tribunal (TDSAT). This decision clears a critical hurdle in AERA’s ongoing challenge to a TDSAT order that significantly limited its authority.
AERA’s appeal stems from a TDSAT ruling that held the regulatory authority could not impose tariffs on specific airport services, such as cargo and ground handling. The TDSAT had categorized these as non-aeronautical services, which, in their view, fall outside AERA’s regulatory domain.
Read Also: “We Miss Our Genuine PILs”: CJI Dismisses Plea for OTT Regulation
In a significant judgment, a Supreme Court bench led by Chief Justice of India DY Chandrachud, along with Justices JB Pardiwala and Manoj Misra, held that AERA’s appeal against the TDSAT verdict is “maintainable”. This ruling dismissed preliminary objections raised by various airports involved in the case. The Court ordered the appeals to be listed for further hearing, marking a crucial step in AERA’s efforts to expand its regulatory scope.
“The appeals by AERA against TDSAT order are held to be maintainable. Registry to list the appeals for hearing,”
the Supreme Court declared, providing AERA the opportunity to challenge TDSAT’s limitation of its powers.
The Airports Economic Regulatory Authority of India (AERA) was established in 2009 under the Central Government to regulate tariffs for aeronautical services and determine charges for other services rendered at major airports. The regulatory body is also responsible for monitoring the performance standards of these airports.
In this case, AERA had imposed tariffs on services such as cargo handling and ground handling. However, TDSAT ruled that these services fall outside AERA’s purview, categorizing them as non-aeronautical, thus exempting them from tariff regulation. The airports involved in the case argued that AERA, as a quasi-judicial authority, could not approach the court as a litigant.
The central legal question before the Supreme Court was whether an appeal by AERA, challenging a TDSAT order, could be deemed maintainable under the Airports Economic Regulatory Authority of India Act, specifically Section 18, which deals with appellate jurisdiction.
With the Supreme Court now declaring that AERA’s appeal is maintainable, the case will proceed to be heard on its merits. The final outcome of this case could have widespread implications for airport operations, particularly concerning the charges passengers pay for services such as ground handling, cargo operations, and other post-flight services.
As AERA seeks to restore or expand its regulatory authority over these services, the outcome could affect tariff structures and service fees across major airports in India, impacting both service providers and passengers.
This decision by the Supreme Court reinforces the broader principle that regulatory bodies, even those functioning in a quasi-judicial capacity, have the right to appeal and challenge rulings that may impact their authority.
The case will now proceed to a full hearing, with the potential to redefine the scope of AERA’s regulatory powers and influence the future of airport service charges across India.
FOLLOW US ON YOUTUBE FOR MORE LEGAL UPDATES