The Supreme Court’s involvement came after the Centre and the AAI’s appeal against the High Court’s judgment was dismissed in 2022, followed by the rejection of their review plea
Supreme Court of India is set to deliberate on a plea filed by the Central Government and the Airports Authority of India (AAI) against a Bombay High Court order. This order had previously nullified a decision favoring GMR Airports Ltd for the upgradation and operation of Dr. Babasaheb Ambedkar International Airport in Nagpur, sparking a complex legal battle over the airport’s future management and development.
The heart of this legal controversy dates back to a March 2020 communication by MIHAN India Ltd (Multimodal International Cargo Hub and Airport at Nagpur), a collaborative venture between the Maharashtra Airport Development Company and the AAI. This communication had initially awarded GMR Airports the contract for the airport’s enhancement and operational responsibilities. However, the Bombay High Court, in August 2021, deemed this award “arbitrary and unfair,” leading to its cancellation. This decision was based on the premise that the awarding process lacked fairness and transparency, thereby necessitating its revocation.
The Supreme Court’s involvement came after the Centre and the AAI’s appeal against the High Court’s judgment was dismissed in 2022, followed by the rejection of their review plea. The apex court’s decision to entertain the curative plea underscores the critical nature of the dispute, emphasizing the argument that the Centre and the AAI are indispensable parties in matters concerning airport operations and management due to their constitutional and sovereign roles.
Solicitor General Tushar Mehta, representing the Centre and the AAI, articulated the government’s stance, highlighting the sovereign functions performed by the AAI, including security, immigration, and customs at airports. He argued that the dispute’s resolution could not proceed without involving these central entities, given their significant responsibilities and oversight in airport operations.
Contrastingly, GMR Airports, through Senior advocate Abhishek Singhvi, countered the curative plea, pointing out that the AAI, as part of the joint venture MIHAN India Ltd, had been adequately represented and heard during the judicial proceedings. This assertion challenges the notion that the Centre and the AAI were sidelined in the decision-making process, suggesting instead that the legal proceedings had been inclusive of all relevant parties.
Chief Justice DY Chandrachud, leading a special four-judge bench that includes Justices Sanjiv Khanna, BR Gavai, and JK Maheshwari, has directed for the case to be listed for detailed consideration. This move indicates the Supreme Court’s recognition of the case’s complexity and its potential implications for airport management and development practices in India.
The Bombay High Court’s 2021 judgment had initially cleared the path for GMR Airports to proceed with the airport’s upgradation and operation, a decision that was celebrated by the company and seen as a step forward in enhancing Nagpur’s aviation infrastructure. However, the subsequent legal challenges have cast a shadow over these plans, bringing to the forefront issues related to the transparency and fairness of the bidding and awarding processes.
As the Supreme Court prepares to delve into this intricate legal dispute, the aviation industry and legal observers alike await a resolution that will not only determine the fate of Nagpur’s airport but also set a precedent for how public-private partnerships and contracts are awarded and contested in India’s aviation sector. The outcome of this case could have far-reaching implications for the development and management of critical infrastructure, underscoring the importance of clear, fair, and transparent processes in public sector contracts and partnerships.
