SYNOPSIS
This Special Leave Petition arises from the Judgment passed by the
High Court of Kerala dismissing the Writ Petition filed by the State of
Kerala as not maintainable, holding that the question raised in the Writ
Petition is to be decided by the Hon’ble Supreme Court under Article
131 of the Constitution of India. The High Court rejected the
contention of the petitioner State of Kerala that the Writ Petition filed
under Article 226 of the Constitution is maintainable, as apart from
Union of India, the Airports Authority of India and its functionaries are
also arrayed as party respondents in the Writ Petition, as also private
respondents 8 to 10 who are necessary parties in the Writ Petition.
It is submitted that this Hon’ble Court in a catena of Judgments viz.
State of Bihar v. Union of India (1970)1 SCC 67, State of
Rajasthan v. Union of India (1977) 3 SCC 592, Union of India v.
State of Rajasthan, (1984) 4 SCC 238 and Tashi Delek Gaming
Solutions Ltd. v. State of Karnataka (2006) 1 SCC 442 held that
Article 131 of the Constitution of India does not contemplate any
private party being arrayed as a disputant on one side or the other and
Article 131 will not be applicable where citizens or private bodies are
parties either jointly or in the alternate with the State or the
Government of India.
In the instant case, the State of Kerala filed a Writ Petition before the
High Court of Kerala under Article 226 of the Constitution of India
challenging the arbitrary and illegal action of the Airports Authority of
India in attempting to prefer a particular private concessionaire (who is
arrayed as Respondent No.9 in the said Writ Petition) for the
operation, management and development of Thiruvananthapuram
International Airport. The writ petition is filed on various grounds,
including absence of public interest in the grant of such concession,
the same not being in the interest of better management of the Airport,
the entire proceedings including tender process being vitiated by
malafides and also in violation of the provisions of the Airport Authority
of India Act, 1994 and the attempted grant of concession being in
violation of an earlier undertaking by the Ministry of Civil Aviation,
Government of India and rejecting the proposal of the State
Government to form a Special Purpose Vehicle (SPV) to take over and
run the Airport on revenue sharing basis.
The Government of Kerala is having experience in running Airports
through its various organizations. The Kochi International Airport at
Nedumbasserry, Ernakulam, Kerala, which is being operated by
Cochin International Airport Limited (CIAL), a State Government
sponsored Company, is one of the leading Airports world over. The
State Government is having major share in the same apart from the
shares of other Government Institutions including the Kerala State
Industrial Development Corporation, Respondent No.10 herein. The
Kochi International Airport had won much recognition, including
recognition from the United Nations and is the only airport in the world
which is being operated solely by solar energy. The Kochi
International Airport is also making huge profits, unlike many other
airports in the country.
Apart from the above mentioned Kochi International Airport, the
Kannur International Airport, having most modern and state of the art
aviation and other passenger and cargo facilities, which is being
operated by the Kannur International Airport Limited (KIAL), another
State Government sponsored Company, has become operational and
is making steadfast progress.
The contention of the State of Kerala in the Writ Petition, inter alia, is
that the attempt on the part of the Airport Authority to grant right of
Operation, Management and Development of Thiruvananthapuram
Airport, to a private party, Respondent No.9, who has no previous
experience in managing airports, is not in public interest and is
violative of the provisions of the Airport Authority of India Act, 1994 as
well as the proprietary rights of the State Government as regards the
land wherein the Thiruvananthapuram Airport is situated, especially
when the Hon’ble Chief Minister of Kerala, has offered to take the
project at the rate at par with what was quoted by Respondent No.9. It
was further contended that the condition precedent for the Airport
Authority to invoke provisions of Section 12A of the Airport Authority of
India Act, 1994 is either public interest or for better management
thereof and in the Request For Proposals published by the Airport
Authority of India there is no mention that such a cause is being
adopted on the basis of the conditions mentioned in Section 12A of
the Airport Authority of India Act, 1994 and therefore the Request For
Proposals is an arbitrary exercise of power.
The High Court by the impugned Judgment held that the writ petition
filed by the State of Kerala is not maintainable in so far as the remedy
of the Petitioner State is to file a suit before the Supreme Court in
terms of Article 131 of the Constitution of India. It was further held that
the Airport Authority of India was essentially implementing a policy of
the Government of India in terms of section 40 of the Airport Authority
of India Act and therefore, essentially the dispute was between the
Government of India and the State of Kerala, which is a dispute over
which the Hon’ble Supreme Court is having jurisdiction to the
exclusion of all Courts.
It is submitted that the High Court failed to appreciate that Article 131
of the Constitution does not contemplate any private party being
arrayed as a party on one side or other. In the instant case the Airport
Authority is made as a respondent in the Writ Petition as it is a
necessary party. A suit under Article 131 is not maintainable with
Airport Authority as defendant in the suit. It is submitted that for
determining as to whether a suit before the Hon’ble Supreme Court
under Article 131 of the Constitution has to be taken recourse to, it is
necessary to consider whether the State can, in the facts of the given
case, independently maintain a suit against the Government of India.
As per section 12A of the Airport Authority of India Act, it is the Airport
Authority which is to make a lease, though it is a government policy in
terms of Section 40 of the said Act. It is submitted that any
proceedings regarding the decision to make such a lease will be bad
for non joinder of necessary parties if Airport Authority of India is not in
the party array. Therefore Airport Authority of India is a necessary
party to such a lis and no writ petition will lie without Airport Authority
on the party array. It is submitted that in the instant case, it is the
Airport Authority which invited the Request For Proposal and any
challenge impugning the proceedings which led to the Request For
Proposal cannot be instituted without Airport Authority on the party
array.
It is submitted that the High Court failed to appreciate that the word
“State” in Article 131 of the Constitution cannot be a “State” under
Article 12 of the Constitution of India. The Airports Authority may
qualify to be a “State” in terms of Articles 12 and 36 of the
Constitution. It is submitted that such wider definition of “State” in
Articles 12 and 36 of the Constitution, as mandated in the said Articles
itself, are intended for the purpose of Part III and IV of the Constitution
and therefore the attributes of “State” in terms of Parts III and IV of the
Constitution cannot be imported to “States” as provided for in Article
131, which takes in only a “State” which is the constituent unit of the
Union of India.
It is submitted that the High Court failed to appreciate that in so far as
Airports Authority is a necessary party and in so far as Airports
Authority will not qualify to be a “State” as provided for under Article
131 of the Constitution and no suit in terms of the said Article 131 can
be filed with any party other than any State or Government of India in
the party array, no suit will lie before the Hon’ble Supreme Court in the
given case and only a writ petition under Article 226 of the Constitution
will lie.
It is submitted that the High Court failed to appreciate that apart from
the third respondent Airports Authority, the respondents 4 to 6, being
officers of the Airports Authority viz. the Executive Director, the
Regional Executive Director and the Airport Director Airports Authority
of India and the respondents 8 to 10, being entities which took part in
the bid for lease of operations of Thiruvananthapuram Airport viz.
Airports Economic Regulatory Authority of India, G.M.R Airports Ltd,
Adani Enterprises Ltd and the Kerala Industrial Development
Corporation, are also necessary parties to the writ petition. The
petitioner has explained as to how a writ petition is maintainable and
as to why proceedings in terms of Article 131 of the Constitution of
India cannot be taken recourse to in paragraph 2 of the writ petition.
Paragraph 2 of the writ petition is reproduced hereunder:
2) It is trite and settled law that in a suit in terms of Article
131 of the Constitution of India, it could only be the
constituent units of the Union of India and the
Government of India itself arrayed or one side or the other
either singly or jointly with another unit or the Government
of India. Thus, as settled by the Hon’ble Apex Court in a
catena of decisions, a dispute which fell within the ambit
of Article 131 could only be determined in the Hon’ble
Supreme Court if there had not been impleaded in the
said dispute any private party, be it a citizen or a firm or a
corporation along with a State either jointly or in the
alternative and that a dispute in which such a private
party was involved must be brought before a Court, other
than the Hon’ble Apex Court. It is also trite and settled law
that the enlarged definition of “State” given in Parts III and
IV of the Constitution would not be attracted to Article 131
of the Constitution. Thus the Airport Authority of India
cannot be considered to be a “State” for the purpose of
Article 131 of the Constitution. The lis in this writ petition
cannot be finalised without the Airport Authority of India or
its Officers or the respondents 8 and 9 in the party array.
Thus, in so far as the respondents 3 to 6 and 8 and 9 are
necessary parties to the lis, no suit, on the cause of action
traced in this writ petition, can be sustained before the
Honourable Apex Court in terms of Article 131 of the
Constitution of India and, as such, this writ petition is
maintainable before the Hon’ble Court on the various
grounds raised herein below.
It is submitted that when the maintainability of the writ petition was
properly explained by the petitioner in the writ petition itself and also in
view of the ratio laid down by this Hon’ble Court regarding the
maintainability of a suit under Article 131 of the Constitution, the High
Court should not have dismissed the writ petition on the ground of
maintainability.
This Hon’ble Court in State of Bihar v. Union of India, (1970) 1 SCC
67 held as follows:-
3. Clauses (a), (b) and (c) of the article specify the parties who
can appear as disputants before this Court. Under clause (a) it
is the Government of India and one or more States; under
clause (b) it is the Government of India and one or more States
on one side and one or more other States on the other, while
under clause (c) the parties can be two or more States without
the Government of India being involved in the dispute. The
specification of the parties is not of an inclusive kind. The
express words of clauses (a), (b) and (c) exclude the idea of a
private citizen, a firm or a corporation figuring as disputant either
alone or even along with a State or with the Government of
India in the category of a party to the dispute. There is no scope
for suggesting that a private citizen, a firm or a corporation can
be arrayed as a party by itself on one side and one or more
States including the Government of India on the other. Nor is
there anything in the article which suggests a claim being made
by or preferred against a private party jointly or in the alternative
with a State or the Government of India. The framers of the
Constitution appear not to have contemplated the case of a
dispute in which a private citizen, a firm or a corporation is in
any way involved as a fit subject for adjudication by this Court
under its exclusive original jurisdiction conferred by Article 131.
This Hon’ble Court in State of Rajasthan v. Union of India, (1977) 3
SCC 592 held as follows:-
There are two limitations in regard to the nature of the suit which
can be entertained by the Supreme Court under this Article.
One is in regard to parties and the other is in regard to the
subject-matter. The Article provides in so many terms in clauses
(a), (b) and (c) that the dispute must be between the
Government of India and one or more States, or between the
Government of India and any other State or States on one side
and one or more other States on the other, or between two or
more States. It does not contemplate any private party being
arrayed as a disputant on one side or the other. The parties to
the dispute must fall within one or the other category specified in
clauses (a), (b) and (c).
This Hon’ble Court in Tashi Delek Gaming Solutions Ltd. v. State of
Karnataka, (2006) 1 SCC 442 held as follows:-
Article 131 of the Constitution postulates that this Court to
the exclusion of any other court shall have original
jurisdiction in any dispute between the Government of
India and one or more States; or between the
Government of India and any State or States on one side
and one or more other States on the other; or between
two or more States. We in this case are not concerned
with the proviso to the said article. The said article would
be attracted where adjudication is necessary in relation to
a legal right of one State or the Union of India vis-à-vis
other States, as the case may be. Indisputably, the
expression “legal right” has received liberal interpretation
by this Court from time to time. However, it is now well
settled by various decisions of this Court that this article
will not be applicable where citizens or private bodies are
parties either jointly or in the alternative with the State or
the Government of India. The enlarged definition of
“State” under Article 12 would not extend to Article 131 of
the Constitution. It is also not in dispute that even a
statutory corporation is not a State within the meaning of
the said provision.
It is submitted that the reliefs claimed in the Writ Petition filed by the
State of Kerala itself shows that a suit under Article 131 is not all
maintainable and the Hon’ble Supreme Court cannot pass a decree in
such terms under Article 131 of the Constitution. The Reliefs in the writ
Petition are as follows:-
RELIEFS
(1) Declare that Exhibits P13 Request for Proposal
(RFP) for Concession with regard to the Operation,
Management and Development of
Thiruvananthapuram International Airport is without
jurisdiction, illegal and violative of Section 12A of
the Airport Authority Act;
Or in the alternative
(2) Declare that the Petitioner State of Kerala is
entitled to preferential consideration over the ninth
respondent in public interest as regards the
Concession for Operation, Development and
Management of Thiruvananthapuram Airport, in
view of the mandate of Section 12A of the Airport
Authority Act;
(3) Declare that the third respondent Airport Authority
of India is bound to accept the proposal of the State
Government through the tenth respondent for grant
of concession facility at par with the amount offered
by the ninth respondent;
(4) Issue a writ of mandamus or any other appropriate
writ or order or direction commanding the 3rd
respondent to positively consider the offer of the
State of Kerala, as revealed from Exhibits P19 and
P20 letters, before finalizing the Tender pursuant to
Exhibit P13;
(5) Issue a writ of certiorari or any other appropriate
writ or order or direction calling for the records
leading to Exhibit P9 and quash the same, in so far
as it limits the Right of First Refusal (RFP) to the
petitioner State in the manner to plus or minus
10%.
It is submitted that the issuance of writs sought for in the Writ Petition
are against the Airport Authority of India and for issuing the
declarations, the Court has to hear the private parties and thus only a
Writ Court can hear such a petition.
It is submitted that the dispute regarding whether the Request For
Proposal issued by the Airport Authority of India is violative of Section
12A of the Airport Authority of India Act or whether the State of Kerala
is entitled to preferential consideration over Respondent No.9 in public
interest regards the Concession for Operation, Development and
Management of the Thiruvananthapuram Airport in view of the
mandate of the Airport Authority of India Act and other questions
arises in the Writ Petition cannot be treated as question “on which the
existence or extent of a legal right depends” as contemplated under
Article 131 of the Constitution, when the lis involves private parties
and a Statutory Authority.
Hence the Special Leave Petition
LIST OF DATES
1932 The Thiruvananthapuram Airport, the first such
facility in the erstwhile Travancore Princely State
and the present day geographical area of Kerala
State, was established in 1932 as part of Royal
Flying Club in 258.06 acres of land owned by the
said princely State of Travancore. Thus the Airport
happened to be initially established in 258.06 acres
of land, which land belonged to the then existent
princely State of Travancore and which is presently
in Pettah Village of Thiruvananthapuram Taluk,
Thiruvananthapuram District.
1938 TATA Airlines made its Maiden Flight from therein.
The first squadron of Royal Indian Air Force began
operating therein from 1938.
After independence, the Domestic Terminal was
constructed.
1.7.1949 The Rulers of the then princely States of
Travancore and Cochin entered into a Covenant
with the concurrence and guarantee of the
Government of India, by virtue of which the United
States of Travancore and Cochin came into being
with effect from 01.07.1949. By virtue of Article I I I
of the said Covenant, the assets and liabilities of
each of the covenanting State of Travancore and
Cochin became the assets and liabilities of the
United States of Travancore and Cochin. As such,
the aforementioned 258.06 acres of land (in Pettah
Village) in which the Airport was initially established
became the land owned by the United States of
Travancore and Cochin.
1956 By virtue of Article IX of the above mentioned
Covenant, an Instrument of Accession was
executed by the Rajapramukh of the United States
of Travancore and Cochin and by virtue of the said
instrument of accession, the United States of
Travancore and Cochin became a constituent unit
of the Indian Union. By virtue of Section 5 of the
States Reorganisation Act, 1956, State of Kerala
was formed including the Travancore -Cochin State
(except those areas of the said State which were
ceded to the then Madras State as per Section 4 of
the said Act), the erstwhile Malabar District
(excluding Laccadives and Minicoy islands) of
Madras State and Kasaragode Taluk of South
Canara District. By virtue of Section 2 (o) of the
said Act, the new State of Kerala is the successor
State of the erstwhile Travancore - Cochin State
and by virtue of Section 77 of the said Act, all land
which belonged to the erstwhile Travancore -
Cochin State passed on to the newly formed Kerala
State. Hence, after 1956, the aforesaid 258.06
acres of land (now in Pettah Village), in which the
Airport was initially established and now forms part
of the larger area in which it is functioning, became
the asset of the State of Kerala.
1970 International operations were initiated from the
Airport by Air India in the year 1970. In the early
1980s, Indian Airlines started services to Colombo
and Male.
1985 By virtue of Section 13 of the National Airport
Authority Act 1985, the equipments and
navigational and ground aids relating to air traffic
services in the Airport became vested with National
Airport Authority and the Airport became part of the
National Airport Authority in matters of its operation.
The aforementioned landed property, upon which
the Airport was initially established, continued to be
vested with the State Government. After the
commencement of the Airport Authority of India Act
1994, the Airport came under the operational
authority of the Airport Authority of India. But the
said land, as earlier, continued to be vested with
the State.
1.01.1991 The Airport was upgraded to International Airport.
The State of Kerala has effectively and purposefully
promoted the Thiruvananthapuram Airport and
because of its earnest efforts, the Airport, as stated
above, was declared as the first International
Airport of the State of Kerala in 1991. The State of
Kerala has given the entire infrastructural and other
facilities for promoting the affairs of the Airport and
is continuing to do so. The betterment of the
Airport, both international and domestic terminals,
is in the best interests of the people of Kerala and
hence the State Government is visibly interested in
promoting the affairs of the Airport to the best of its
efforts.
As on today, the Airport is having a total extent of
636.57 acres of land. Airport Authority of India has
ownership only 0.5756 hectares out of the total
extent of 636.57 acres of land.
Apart from the aforementioned 258.06 Acres of
property, 329.6 Acres of land was acquired by the
third respondent Airport Authority of India and
Government of India, 32.56 Acres of land was
acquired by the Government of Kerala and 8.29
Acres of Government land was transferred by the
Government of Kerala free of cost. The
aforementioned 258.06 Acres in which the Airport
was initially established has been entered in
revenue records as Puramboke land, meaning
Government land. That the said 258.06 acres of
land has been entered in revenue records as
Puramboke land.
23.04.2003 After the economic policy of the Union Government
changed, with the advent of liberalisation,
privatisation and globalisation measures, there
were attempts to privatise the management and
operation of various airports in India. When there
were some movements for privatising the
management of the Airport, the State Government
approached the Central Government, detailing the
interest of the State Government in protecting the
public interest. Pursuant to the repeated efforts of
the State Government to protect the affairs of the
Thiruvananthapuram Airport, the Secretary,
Ministry of Civil Aviation, Government of India, the
second respondent herein, issued D.O. Letter No.
1413/SCA/2003 dated 23.04.2003 to the Chief
Secretary of the Petitioner State regarding
development of Airports in Kerala. In answer to the
query of the petitioner State with regard to the
possibility of private sector involvement in the
development of the Airport, it was clarified by the
second respondent in the said letter that there was
no plan to handover to the Airport to any private
agency; that a Special Purpose Vehicle (SPV) for
development of Airport with State Government and
financial institutions as partners could be created;
and that cost of acquisition of land by the
Government fully or partially could be adjusted
towards the State's share. A copy of the Letter
D.O.No. 1413/SCA/2003 issued by the Secretary,
Ministry of Civil Aviation, Government of India
dated 23.04.2003 is annexed and marked as
ANNEXURE-P1 ( at page …..to……..).
As can be seen from Annexure-P1 letter dated
23.04.2003, the Union Government, through its
Ministry of Civil Aviation, had assured the State
that a SPV for development of
Thiruvananthapuram Airport was to be created
and that the State Government's equity share in
the said SPV would be the cost of the acquisition
of the land. I t was also assured that when a
decision was taken to induct private sector in the
management of the Airport, the Union Government
would be happy to consult the State taking into
account the contribution being made by the State
Government towards the acquisition of the
additional land for the Airport.
7.10.2003 Through Letter numbered DO No.
20311/D2/97/TRAN dated 7.10.2003 and earlier
letters dated 17.03.2003 and 23.04.2003 issued
by the then Principal Secretary to the Government
of Kerala, Department of Transport to the then
Secretary, Ministry of Civil Aviation, Government
of India, the Government of the Petitioner State
had expressed its desire for signing of a
Memorandum of Understanding between the
Government of India and the State Government if
there was a change of ownership, management
etc of the Airport once the land was handed over
to the third respondent. Letters dated 17.03.2003
and 23.04.2003 were sent in this regard is
discernible from the Letter dated 7.10.2003. A
copy of the DO No. 20311/D2/97/TRAN dated
7.10.2003 is annexed and marked as
ANNEXURE-P2 ( at page …..to……..).
2.12.2003 As per D.O. Letter No. AV.24018/1/99-AAI P-3
dated 02.12.2003, the Secretary, Ministry of Civil
Aviation, Government of India assured the State
Government that taking into account the
contribution being made by the State for
acquisition of additional land for the Airport, the
State Government would be consulted at the time
when a decision would be taken to induct private
sector in to the management of
Thiruvananthapuram Airport. A copy of the
D.O.24018/1/99-AAI P-3 dated 02.12.2003 is
annexed and marked as ANNEXURE-P3 ( at
page …..to……..).
16.3.2004 Sanction was accorded for handing over of land
to the third respondent Airport Authority and for
acquisition of 120 acres of land for the Airport as
per G.O. (MS) No. 11/2004/Trans dated
16.03.2004 relying on the assurances given by
the Central Government. The assurance given by
the Government of India to the effect that no
policy decision had been taken to induct private
sector into the management of the Airport and
that, in such an event, the Government of India
would consult with the State Government was
specifically noted in G.O. (MS) No. 11/2004/Trans.
A true copy of G.O. (MS) No. 11/2004/Trans
dated 16.03.2004 is annexed and marked as
ANNEXURE-P4 ( at page …..to……..).
29.3.2005 As a matter of fact, during this period, the State
Government had acquired by its own fund an
extent of 27 acres of land for the purpose of the
Airport and handed over the same to the third
respondent Airport Authority of India free of cost.
The same is discernible from G.O. (MS) No.
82/05/RD dated 29.03.2005. As per the said
Government Order, the Government of Kerala
accorded sanction for transfer of 27 acres 57
cents and 11 square links of property comprised
in Pettah Village of Thiruvananthapuram Taluk in
favour of the third respondent on condition that in
the event of the third respondent being structured
into a Company for any reason or if a Special
Purpose Vehicle is set up for the Airport, then the
value of the land transferred to the third
respondent would need to be reflected as
Government of Kerala's share capital and/ or in
any other financial instrument as might be
mutually agreed upon. A true copy of G.O.(MS)
No. 82/2005/RD dated 29.03.2005 is annexed
and marked as ANNEXURE-P5 ( at page
…..to……..).
However, in total negation of the assurance given
by the Government of India and even without
consulting the State Government, Government of
India as well as the Airport Authority of India took
initial steps for giving concession for operation,
management and development of certain Airports
including the Thiruvananthapuram International
Airport to private sector. Accordingly Request For
Proposals (RFP) were published as regards Six
Airports including Thiruvananthapuram.
The third respondent Airport Authority of India had
earlier made similar concessionaire as regards
Airports of Delhi and Mumbai in the year 2005.
While issuing the Request For Proposals with
regard to the said airports in 2005, one of the
paramount qualifications to participate in the
tender process was previous experience in running
Airport. This was highly essential since Airport
Management was unlike other commercial,
activities and needed prior experience and
professional and technical expertise.
The Government of Kerala is having experience in
running Airports through its various organizations.
The Kochi International Airport at Nedumbasserry,
Ernakulam, Kerala, which is being operated by
Cochin International Airport Limited (CIAL), a State
Government sponsored Company, is one of the
leading Airports world over. The State Government
is having major share in the same apart from the
shares of other Government Institutions including
Kerala State Industrial Development Corporation,
Respondent No.10 herein. I t is submitted that the
Cochin International Airport has won many
recognitions, including recognition from the United
Nations and is the only airport in the world which is
being operated solely by solar energy. The
aforesaid Airport is also making huge profits, unlike
many other airports in the country.
Apart from the Kochi International Airport, Kannur
International Airport, having most modern and
state of the art aviation and other passenger and
cargo facilities, which is being operated by the
Kannur International Airport Limited (KIAL),
another State Government sponsored Company,
has become operational and is making steadfast
progress. Thus, if the proposed Request For
Proposal of concession for development and
management of Thiruvananthapuram Airport was
having a condition of previous experience as a pre-
qualification, necessarily the State Government
and its instrumentalities would have got
preference.
21.11.2018 On coming to know that the Union Government
unilaterally decided to develop the
Thiruvananthapuram Airport on Public Private
Partnership (PPP) Mode, the Hon’ble Chief
Minister of Kerala sent D.O. Letter No.
2195/2018/CM dated 21.11.2018 to the Hon’ble
Minister for Civil Aviation, Union of India seeking
for intervention to reconsider the decision of the
Union Cabinet to development the Airport on PPP
Mode and to allow the State Government to form
a special purpose vehicle to takeover and run the
Airport on revenue sharing basis. A true copy of
the Letter D.O.No. 2195/2018/CM dated
21.11.2018 is annexed and marked as
ANNEXURE-P6 ( at page …..to……..).
In Annexure P6 Letter, it was specifically stated
that the Airport property comprised of land given
by the State Government, erstwhile Travancore
State and the land acquired by the State
Government from time to time and given to the
third respondent Authority free of cost; that the
State had been acquiring land from 2000
onwards for the purpose of the Airport on the pre
requisite that the Government of India would
consult the petitioner State before inducting the
private sector to the management of the Airport
and further that the value of the land being
acquired and handed over to the third respondent
Authority would be treated as the share of the
Government of Kerala in the event of a Company
or a special purpose vehicle being set up for the
purpose of management of the Airport; that the
State Government was in the process of
acquiring a further 18 acres of land for the Airport
at a cost of Rupees 250 Crores; that the State
Government had promoted Cochin International
Airport Limited (CIAL) through public participation
though a business model that had made Kochi
International Airport one of the best airports in the
country winning even accolades from the United
Nations; that the State Government had
promoted a Company, Kannur International
Airport Limited (KIAL), for another international
airport in the State at Kannur, which was then
about to commence operations (now operative);
and that it was well very well demonstrated that
the Government of the petitioner State had
adequate experience in promoting/ sponsoring
SPVs for the construction and operation of green
field international airports in the State. The
Government of India was requested to delink the
Thiruvananthapuram Airport from the list of
airports set apart for PPP mode development.
The Government of India was also requested to
constitute a committee to look at various other
options and business models under which a SPV
could be formed for the operation and
development of the Airport wherein the cost of
land acquired by the State could be converted to
its equity share, the investment made by the third
respondent Authority could be converted to its
share and wherein remaining investment could
come from various institutional investors for future
development. The suggestion of the petitioner
State was that the Airport could be developed
and operated through a SPV with the
Government of Kerala as the chief promoter
taking the responsibility to bring in the investors.
28.11.2018 The Secretary, Government of India, Ministry of
Civil Aviation issued D.O. Letter No.
AV.24011/141/2015-AD dated 28.11.2018
informing that the Union Cabinet had approved
the constitution of an Empowered Group of
Secretaries (EGoS) for deciding issues relating to
PPP of the Airport. I t was stated therein that the
first meeting of the EGoS was scheduled on
04.12.2018 and the Chief Secretary of the
Government of Kerala was requested to make
presentation before the EGoS. A copy of Letter
D.O.No.AV.24011/141/2015-AD (Vol-IV) dated
28.11.2018 is annexed and marked as
ANNEXURE-P7 ( at page …..to……..).
4.12.2018 The Chief Secretary of the Petitioner State made
a presentation before the EGoS on 04.12.2018.
The presentation, inter alia, included the history
of the Airport, the area parameters, the split up
details of the land available with the Airport and
the assurances given in 2003 by the Ministry of
Civil Aviation in 2003 regarding formation of an
SPV and consultation with the Government of
Kerala in the event of inducting private sector to
the management of the Airport. Two options were
placed as (A) and (B). Option (A): "The third
respondent Authority may transfer the Airport
assets and operation to the Government of
Kerala. The Government of Kerala, thereafter, will
form an SPV and tie up with a strategic partner
who is a proven operator at the international
level". Option (B): "The third respondent Authority
may offer the right of first refusal to the SPV of
the Government of Kerala and the said SPV will
participate in the bid along with a strategic partner
who has vast experience in Airport operations.
4.12.2018 The EGoS, in its meeting dated 04.12.2018,
decided to offer two options for the Government
of Kerala as a special case in respect of the PPP
of the Airport. The options were (i) that the
Government of India will invite Chief Secretary
and other officials of Government of Kerala as
special invitees for the purpose of participating in
the selection process for the PPP partner for the
Airport so as to address concerns/ interests of the
State Government or (ii) to proceed with
alternative (B) offered by the Government of
Kerala with the stipulation that an entity/ SPV in
which Government of Kerala has a direct equity
of 26 % or more is eligible for the right of first
refusal provided that the SPV's bid falls within the
range (plus or minus) of 10 % of the highest bid.
I t was specifically recorded in the minutes of the
EGoS that the aforementioned options were
being provided recognizing the expertise
demonstrated by the State Government in the
airport sector. True copy of the Minutes of the
meeting of the Empowered Group of Secretaries
(EGoS) dated 04.12.2018 is annexed and marked
as ANNEXURE-P8 ( at page …..to……..). As can
be seen from Annexure-P8, the expertise of the
State Government in the Airport Sector is
recognized by the Airport Authority/3rd
respondent. However, the Right of First Refusal
was arbitrarily limited to plus or minus 10% of the
highest bid. Even then, there was no mention that
the previous experience in Airport Management
will not be considered.
8.12.2018 The Hon’ble Chief Minister of Kerala
addressed D.O Letter No. 3333/18/CM dated
08.12.2018 to the Hon’ble Union Minister for Civil
Aviation stating that the EGoS meeting had not
resolved the issue and also reiterating the first
option submitted by the Government of Kerala
(that is Option (A): "The third respondent
Authority may transfer the Airport assets and
operation to the Government of Kerala. The
Government of Kerala, thereafter, will form an
SPV and tie up with a strategic partner who is a
proven operator at the international level") or in
the alternative to offer the right of first refusal to
the SPV of the Government of Kerala without any
range parameters. I t was requested that the
options may be acceded to having regard to the
demonstrable experience of the Government of
Kerala in promoting SPVs for design build-
operate and maintenance of airports. A true copy
of Letter D.O.No. 3333/18/CM dated 08.12.2018
is annexed and marked as ANNEXURE-P9 ( at
page …..to……..).
11.12.2018 A similar letter, DO No. 415/02/2018/Trans dated
11.12.2018, was sent by the Chief Secretary of
the petitioner State to the Secretary, Ministry of
Civil Aviation, Government of India. A true copy of
Letter DO No. 415/02/2018/Trans dated
11.12.2018 is annexed and marked as
ANNEXURE-P10 ( at page …..to……..).
12.12.2018 In response to Annexure-P10 letter, DO No. AV
.24011/141/2015-AD (Vol IV) dated 12.12.2018
was sent by the Secretary, Ministry of Civil
Aviation to the Chief Secretary of the petitioner
State to the effect that parameters for Right to
First Refusal was required to maintain the
sanctity of the bidding process and that further
enlargement of the range beyond 10 % was also
not advisable for the said reason. A true copy of
DO No. AV .24011/141/2015-AD (Vol-IV) dated
12.12.2018 is annexed and marked as
ANNEXURE-P11 ( at page …..to……..).
14.12.2018 On 14/12/2018, the Request For Proposals (RFP)
with regard to concession for operation,
management and development of the Airport was
published by the Airport Authority, ignoring the
legitimate claims of the petitioner State
Government. In order to avoid a situation, where
the petitioner is not a participant in the Tender
process, it was decided that the petitioner State
Government through the Kerala State Industrial
Development Corporation Limited, Respondent
No.10 herein, should participate in the Tender,
though under protest, which was obvious from the
previous as well as subsequent communications
by the State Government to the Airport Authority
and Union of India. A copy of the Request For
Proposals issued by the Airport Authority of India
dated 14.12.2018 is annexed and marked as
ANNEXURE-P12 ( at page …..to……..).
Though the Hon’ble Chief Minister in the Letter
dated 21.11.2018 addressed to the Hon’ble
Minister for Civil Aviation, Government of India
had specifically pointed out the previous
experience of the State Government and its
instrumentalities in running, managing and
developing airports, so that other private players
without previous experience in airport
management and development would not be
taken into account. However, obviously to avoid
the State Government and its instrumentalities
from getting a preference in process of granting
the concession for operation, management and
development of Thiruvananthapuram Airport, the
clause regarding previous experience as a pre-
qualification for concessionaire for
Thiruvananthapuram Airport was intentionally
omitted from the RFP for the same. The same
was contrary to what was provided for in the
Concessionaire tenders regarding the Delhi and
Mumbai Airports.
As can be seen from RFP, it was published on
14.12.2018. The last date for submitting the bid
was 14.02.2019. As can be seen from paragraph
2.2.2 of RFP, the technical and financial
qualification is mentioned. The prospective bidder
has to register for the bid, upon which he will be
provided with a Draft Concession Agreement.
As per Clause 2.2.1 (b) of the RFP, the bidder
can also be single entity, group or combination of
entities. The technical qualification provided for in
paragraph 2.2.2 (a) of the RFP does not mandate
any previous experience in Airport Management (
as one of the qualification, which is obviously to
ensure that the- credentials of the State
Government is not protected and is overcome by
the ninth respondent. The financial qualification
provided for in paragraph 2.2.2 (b) (ii) of the RFP
mandates that ch bidder should have net worth of
Rs. 1000 crores. Thus for each bid, the bidder
should have an asset of thousand crores.
After paying the registration fee of Rs. 3.89 lakhs,
the bidder has to provide documents including
power of attorney authorizing a person to access
data room of the authority for getting the requisite
data for filing tender. Paragraph 2.9 of the RFP
provides for raising queries and getting
clarifications as also additional information from
the Airport Authority of India regarding the tender
procedure.
As can be seen from Paragraph 1.3 of the RFP,
the time limit for submitting the queries seeking
clarifications was 18.01.2019 and the answers
would be given up to 22.01.2019. However this
time limit was changed by the Authority several
times and extended up to 29.01.2019 and then to
31.01.2019. Even after that, the clarifications and
amendment of the proposal continued up to
08.02.2019. Thus the clarifications as well as
amendment of the conditions were continued up
to 08.02.2019 and the last date for filing the tender
was 14.02.2019. Thus there was only '6' days
from the last date of issuance of clarification and
amendment and last date of filing of the tender.
5.2.2019 The questions whether a Government entity can
participate in the tender or a Government entity
was got clarified by the Airport Authority of India
only as per Letter No. MI/KID/PPP/6 Apts/2018
dated 05.02.2019. A copy of Letter No.
AAI/KID/PPP/6 Apts/2018 dated 05.02.2019 is
annexed and marked as ANNEXURE-P13.(at
pages……to……..). It was also subsequently
clarified that while considering the technical
qualification to have undertaken Rs. 3500 crores
worth work as well as financial qualification of
Rs.1000 crores worth asset, the same would be
sourced by the Kerala State Industrial
Development Corporation (KSIDC) taking into
account the asset of the Government or any of
the instrumentalities since the State
Government is the sole owner of KSIDC.
8.2.2019 As a matter of fact crucial amendments and
clarifications were issued by the Authority, even
on 08.02.2019. A copy of the Addendum No.2
dated 08.02.2019 to the revised draft concession
agreement is annexed and marked as
ANNEXURE-P14 ( at page …..to……..). Even the
criteria of the passengers was changed, the
passengers to be charged was clarified and
amended excluding the passengers who were on
transit, which was not in the RFP. The entire
calculations and modulations have to be changed
because of these changes. Thus there was total
confusion up to 08.02.2019 regarding the details
and modalities of the tender. Even then, the last
date for submitting tender was not extended
beyond 14.02.2019. Thus the KSIDC which had
participated in the tender on 14.02.2019, as
ordered by the State Government, got only '6'
day's which included 2 public holidays, for finally
preparing the tender. It is submitted that this
haste in ensuring the submission of tender on
14.02.2019 within 6 days of the last clarification/
amendment is without any legal basis and is
arbitrary.
14.2.2019 The KSIDC had submitted the tender pursuant
to the request for the purpose on 14.02.2019
with all the details. As a matter of fact, the
KSIDC had quoted the rate of 135 as per
passenger tariff which was the only criteria for
the selection of the tenderer as per RFP. It is
submitted that as regards the Delhi and
Bangalore Airport RFP is concerned, the criteria,
for selection of the tenderer is the rate of profit
sharing.
25.2.2019 The Airport Authority had opened the tenders on
25.02.2019 and it is now understood that the 9th
respondent has quoted Rs. 168 per passenger.
There is every possibility that the Airport
Authority would finalise the bid as regards the
Thiruvananthapuram Airport to Respondent
No.9. Respondent No.8 also took part in the
bidding process.
27.2.2019 The State Government feeling aggrieved, the Hon’ble
Chief Minister sent a letter to the Hon’ble Prime
Minister as well as the Hon'ble Union Minister for
Civil Aviation. A Copy of the letter
D.O.No.463/19/CM dated 27.02.2019 sent by the
Hon'ble Chief Minister of Kerala to the Hon'ble
Prime Minister of India is annexed and marked as
ANNEXURE-P15 ( at page …..to……..). A photo
copy of the letter D.O.No. 464/19/CM dated
27.02.2019 sent by the Hon'ble Chief Minister of
Kerala to the Hon'ble Union Minister for Civil
Aviation is annexed and marked as ANNEXURE-
P16 ( at page …..to……..). The Chief Secretary of
the petitioner State had sent a similar letter to the
Airport Authority.
5.3.2019 The petitioner herein, State of Kerala, filed Writ
Petition (Civil) No. 6823 of 2019 before the High
Court of Kerala contending inter alia that the
attempt on the part of the third respondent Airport
Authority to grant right of Operation, Management
and Development of Thiruvananthapuram Airport,
to the ninth respondent is not in public interest and
is violative of the provisions of the Airport Authority
of India Act as well as the proprietary rights of the
State Government as regards the land wherein the
Thiruvananthapuram Airport is situated, especially
when the Hon’ble Chief Minister of Kerala, has
offered to take the project at the rate at par with
what was quoted by the ninth respondent. It was
further contended that the condition precedent for
the Airport Authority to invoke provisions of Section
12A of the Airport Authority of India Act, 1994 is
either public interest or for better management
thereof and there is no mention in the RFP that
such a cause is being adopted on the basis of the
conditions mentioned in Section 12A. Thus RFP is
without jurisdiction and also an arbitrary exercise
of power. A copy of the Writ Petition W.P.(C) No.
6823 of 2019 (without Exhibits) dated 5.3.2019
filed before High Court of Kerala is annexed and
marked as ANNEXURE-P17 ( at page
…….to……..).
18.12.2019 Impugned Judgment passed by the High Court
holding that the writ petition filed by the State of
Kerala is not maintainable in so far as the remedy
of the Petitioner State is to file a suit before the
Supreme Court in terms of Article 131 of the
Constitution of India. It was further held that the
Airport Authority of India was essentially
implementing a policy of the Government of India in
terms of section 40 of the Airport Authority of India
Act and therefore, essentially the dispute was
between the Government of India and the State of
Kerala, which is a dispute over which the Hon’ble
Supreme Court is having jurisdiction to the
exclusion of all Courts.
03.02.2020 The Special Leave Petition filed.
IN THE SUPREME COURT OF INDIA
[ORDER XXI RULE 3(1) (a)]
CIVIL APPELLATE JURISDICTION
(UNDER ARTICLE 136 OF THE CONSTITUTION OF INDIA)
SPECIAL LEAVE PETITION (CIVIL) NO. OF 2020
(WITH PRAYER FOR INTERIM RELIEF)
BETWEEN Position of Parties
In the High Court In this Court
State of Kerala,
Represented by its Principal Secretary
Transport Department
Government Secretariat
Thiruvananthapuram
KERALA STATE Petitioner Petitioner
AND
1. The Union of India,
Represented by its Secretary
Ministry of Civil Aviation
Government of India, “B” Block,
Rajiv Gandhi Bhavan,
Safdarjung Airport,
NEW DELHI - 110 003. Respondent No.1 Respondent No.1
2. The Secretary
Ministry of Civil Aviation
Government of India, “B” Block,
Rajiv Gandhi Bhavan
Safdarjung Airport
NEW DELHI - 110 003. Respondent No.2 Respondent No.2
3. Airport Authority of India
Represented by Its Executive Director,
Rajiv Gandhi Bhavan
Safdarjung Airport
NEW DELHI - 110 003. Respondent No.3 Respondent No.3
4. The Executive Director
Airport Authority of India
Safdarjung Airport
NEW DELHI - 110 003. Respondent No.4 Respondent No.4
5. The Regional Executive Director
Airports Authority of India
Aai Operational Offices Complex
Chennai Airport, Chennai- 600 027
TAMIL NADU Respondent No.5 Respondent No.5
6. The Airport Director
Airports Authority of India
Thiruvananthapuram International Airport
Vallakadavu P.O.,
Thiruvananthapuram - 695 008.
KERALA STATE Respondent No.6 Respondent No.6
7. Airports Economic Regulatory Authority of India,
Represented by its Secretary
Aera Building
Administrative Complex
Safdarjung Airport,
NEW DELHI - 110 003. Respondent No.7 Respondent No.7
8. G.M.R. Airports Limited,
Represented by its Managing Director
Skip House, 25/1
Museum Road, Bengaluru,
KARNATAKA - 560 025. Respondent No.8 Respondent No.8
9. Adani Enterprises Limited,
Represented By Its Managing Director.
Adani House, Srimali Society,
Mithikhali-6 Road, Navarangapuri,
Ahmedabad,
Gujarat - 380 009, Respondent No.9 Respondent No.9
10. Kerala State Industrial Development Corporation,
Represented by its Managing Director,
Head Office, T.C. Xi/266,
Keston Road, Kowdiar,
Thiruvananthapuram - 695 003.
KERALA STATE. Respondent No.10 Respondent No.10
(All are Contesting Respondents )
To
The Hon’ble the Chief Justice of India
And His companion Justices of the Supreme Court of India
The Humble petition of the petitioner
MOST RESPECTFULLY SHOWETH:-
1. By way of the present petition under Article 136 of the
Constitution of India, the petitioners prays for special leave to
appeal against the impugned final common Judgment dated
18.12.2019 passed by the High Court of Kerala at Ernakulam in
W.P.(C)No. 6823 of 2019 by which the High Court dismissed the
Writ petition filed by the petitioner herein.
2. QUESTIONS OF LAW
A. Whether a Suit under Article 131 of the Constitution of India is
maintainable with any private party being arrayed as a party on
one side or other?
B. Whether the impugned Judgment is contrary to the law laid down
by this Hon’ble Court in State of Bihar v. Union of India (1970)1
SCC 67, State of Rajasthan v. Union of India (1977) 3 SCC
592, Union of India v. State of Rajasthan, (1984) 4 SCC
238 and Tashi Delek Gaming Solutions Ltd. v. State of
Karnataka (2006) 1 SCC 442 ?
C. Whether the word “State” in Article 131 of the Constitution can be
a “State” under Article 12 of the Constitution of India?
D. Whether the High Court is justified in dismissing the Writ Petition
filed by the State of Kerala as not maintainable holding that the
dispute in the Writ Petition is to be decided by the Hon’ble
Supreme Court of India under Article 131 of the Constitution of
India, when the dispute involves the rights of the State of Kerala
in a tender process relating to Operation, Development and
Management of an Airport, at the instance of the Airport Authority
of India?
E. Whether the High Court is justified in dismissing the Writ Petition
filed by the State of Kerala as not maintainable in view of Article
131 of the Constitution of India, when in the Writ Petition, the
Airports Authority, the Executive Director, the Regional Executive
Director and the Airport Director Airports Authority of India and
the private entities which took part in the bid for lease of
operations of Thiruvananthapuram Airport are also arrayed as
party respondents?
3. DECLARATION INTERMS OF RULE 3(2)
The petitioner states that no other petition seeking leave to
appeal has been filed by him against the impugned final common
Judgment passed by the High Court of Kerala at Ernakulam
dated 18.12.2019 in W.P.(C)No. 6823 of 2019.
4. DECLARATION IN TERMS OF RULE 5
The annexures P1 to P17 produced along with the S.L.P are true
copies of the pleadings /documents which formed part of the
records of the case in the court below against whose order the
leave to appeal is sought for in this petition.
5. GROUNDS
A. For that the High Court failed to appreciate that Article 131 of the
Constitution does not contemplate any private party being
arrayed as a party on one side or other. In the instant case the
Airport Authority is made as a respondent in the Writ Petition as it
is a necessary party. A suit under Article 131 is not maintainable
with Airport Authority as defendant in the suit. It is submitted that
for determining as to whether a suit before the Hon’ble Supreme
Court under Article 131 of the Constitution has to be taken
recourse to, it is necessary to consider whether the State can, in
the facts of the given case, independently maintain a suit against
the Government of India. As per section 12A of the Airport
Authority of India Act, it is the Airport Authority which is to make a
lease, though it is a government policy in terms of Section 40 of
the said Act. It is submitted that any proceedings regarding the
decision to make such a lease will be bad for non joinder of
necessary parties if Airport Authority of India is not there in the
party array. Therefore Airport Authority of India is an essential
party to such a lis and no writ petition will lie without Airport
Authority on the party array. It is submitted that in the instant
case, it is the Airport Authority which invited the Request For
Proposal and any challenge impugning the proceedings which led
to the Request For Proposal cannot be instituted without Airport
Authority on the part array.
B. For that the impugned Judgment is contrary to the law laid down
by this Hon’ble Court in State of Bihar v. Union of India (1970)1
SCC 67, State of Rajasthan v. Union of India (1977) 3 SCC
592, Union of India v. State of Rajasthan, (1984) 4 SCC
238 and Tashi Delek Gaming Solutions Ltd. v. State of
Karnataka (2006) 1 SCC 442. This Hon’ble Court in the said
Judgments held that Article 131 of the Constitution of India does
not contemplate any private party being arrayed as a disputant on
one side or the other and Article 131 will not be applicable where
citizens or private bodies are parties either jointly or in the
alternate with the State or the Government of India.
C. For that the High Court failed to appreciate that the word “State”
in Article 131 of the Constitution cannot be a “State” under Article
12 of the Constitution of India. The Airports Authority may qualify
to be a “State” in terms of Articles 12 and 36 of the Constitution. It
is submitted that such wider definition of “State” in Articles 12 and
36 of the Constitution, as mandated in the said Articles itself, are
intended for the purpose of Part III and IV of the Constitution and
therefore the attributes of “State” in terms of Parts III and IV of the
Constitution cannot be imported to “States” as provided for in
Article 131, which takes in only a “State” which is the constituent
unit of the Union of India.
D. For that the High Court failed to appreciate that in so far as
Airports Authority is a necessary party and in so far as Airports
Authority will not qualify to be a “State” as provided for under
Article 131 of the Constitution and no suit in terms of the said
Article 131 can be filed with any party other than any State or
Government of India in the party array, no suit will lie before the
Hon’ble Supreme Court in the given case and only a writ petition
under Article 226 of the Constitution will lie.
E. For that the High Court failed to appreciate that apart from the
third respondent Airports Authority, the respondents 4 to 6, being
officers of the Airports Authority viz. the Executive Director, the
Regional Executive Director and the Airport Director Airports
Authority of India and the respondents 8 to 10, being entities
which took part in the bid for lease of operations of
Thiruvananthapuram Airport viz. Airports Economic Regulatory
Authority of India, G.M.R Airports Ltd, Adani Enterprises Ltd and
the Kerala Industrial Development Corporation, are also
necessary parties to the writ petition. The petitioner has explained
as to how a writ petition is maintainable and as to why
proceedings in terms of Article 131 of the Constitution of India
cannot be taken recourse to in paragraph 2 of the writ petition.
Paragraph 2 of the writ petition is reproduced hereunder:-
2) It is trite and settled law that in a suit in terms of Article 131
of the Constitution of India, it could only be the constituent
units of the Union of India and the Government of India
itself arrayed or one side or the other either singly or jointly
with another unit or the Government of India. Thus, as
settled by the Hon’ble Apex Court in a catena of decisions,
a dispute which fell within the ambit of Article 131 could
only be determined in the Hon’ble Supreme Court if there
had not been impleaded in the said dispute any private
party, be it a citizen or a firm or a corporation along with a
State either jointly or in the alternative and that a dispute in
which such a private party was involved must be brought
before a Court, other than the Hon’ble Apex Court. It is also
trite and settled law that the enlarged definition of “State”
given in Parts III and IV of the Constitution would not be
attracted to Article 131 of the Constitution. Thus the Airport
Authority of India cannot be considered to be a “State” for
the purpose of Article 131 of the Constitution. The lis in this
writ petition cannot be finalised without the Airport Authority
of India or its Officers or the respondents 8 and 9 in the
party array. Thus, in so far as the respondents 3 to 6 and 8
and 9 are necessary parties to the lis, no suit, on the cause
of action traced in this writ petition, can be sustained before
the Honourable Apex Court in terms of Article 131 of the
Constitution of India and, as such, this writ petition is
maintainable before the Hon’ble Court on the various
grounds raised herein below.
It is submitted that when the maintainability of the writ petition
was properly explained by the petitioner in the writ petition itself
and also in view of the ratio laid down by this Hon’ble Court
regarding the maintainability of a suit under Article 131 of the
Constitution, the High Court should not have dismissed the writ
petition on the ground of maintainability.
F. This Hon’ble Court in State of Bihar v. Union of India, (1970) 1
SCC 67 held as follows:-
3. Clauses (a), (b) and (c) of the article specify the parties
who can appear as disputants before this Court. Under
clause (a) it is the Government of India and one or more
States; under clause (b) it is the Government of India and
one or more States on one side and one or more other
States on the other, while under clause (c) the parties can
be two or more States without the Government of India
being involved in the dispute. The specification of the
parties is not of an inclusive kind. The express words of
clauses (a), (b) and (c) exclude the idea of a private citizen,
a firm or a corporation figuring as disputant either alone or
even along with a State or with the Government of India in
the category of a party to the dispute. There is no scope for
suggesting that a private citizen, a firm or a corporation can
be arrayed as a party by itself on one side and one or more
States including the Government of India on the other. Nor
is there anything in the article which suggests a claim being
made by or preferred against a private party jointly or in the
alternative with a State or the Government of India. The
framers of the Constitution appear not to have
contemplated the case of a dispute in which a private
citizen, a firm or a corporation is in any way involved as a
fit subject for adjudication by this Court under its exclusive
original jurisdiction conferred by Article 131.
G. This Hon’ble Court in State of Rajasthan v. Union of India,
(1977) 3 SCC 592 held as follows:-
There are two limitations in regard to the nature of the suit
which can be entertained by the Supreme Court under this
Article. One is in regard to parties and the other is in regard
to the subject-matter. The Article provides in so many
terms in clauses (a), (b) and (c) that the dispute must be
between the Government of India and one or more States,
or between the Government of India and any other State or
States on one side and one or more other States on the
other, or between two or more States. It does not
contemplate any private party being arrayed as a disputant
on one side or the other. The parties to the dispute must
fall within one or the other category specified in clauses (a),
(b) and (c).
H. This Hon’ble Court in Tashi Delek Gaming Solutions Ltd. v.
State of Karnataka, (2006) 1 SCC 442 held as follows:-
Article 131 of the Constitution postulates that this Court to
the exclusion of any other court shall have original
jurisdiction in any dispute between the Government of India
and one or more States; or between the Government of
India and any State or States on one side and one or more
other States on the other; or between two or more States.
We in this case are not concerned with the proviso to the
said article. The said article would be attracted where
adjudication is necessary in relation to a legal right of one
State or the Union of India vis-à-vis other States, as the
case may be. Indisputably, the expression “legal right” has
received liberal interpretation by this Court from time to
time. However, it is now well settled by various decisions of
this Court that this article will not be applicable where
citizens or private bodies are parties either jointly or in the
alternative with the State or the Government of India. The
enlarged definition of “State” under Article 12 would not
extend to Article 131 of the Constitution. It is also not in
dispute that even a statutory corporation is not a State
within the meaning of the said provision.
I. It is submitted that the reliefs claimed in the Writ Petition filed by
the State of Kerala itself shows that a suit under Article 131 is not
all maintainable and the Hon’ble Supreme Court cannot pass a
decree in such terms under Article 131 of the Constitution. The
Reliefs in the writ Petition are as follows:-
RELIEFS
(1) Declare that Exhibits P13 Request for Proposal
(RFP) for Concession with regard to the Operation,
Management and Development of
Thiruvananthapuram International Airport is without
jurisdiction, illegal and violative of Section 12A of the
Airport Authority Act;
Or in the alternative
(2) Declare that the Petitioner State of Kerala is entitled
to preferential consideration over the ninth
respondent in public interest as regards the
Concession for Operation, Development and
Management of Thiruvananthapuram Airport, in view
of the mandate of Section 12A of the Airport
Authority Act;
(3) Declare that the third respondent Airport Authority of
India is bound to accept the proposal of the State
Government through the tenth respondent for grant
of concession facility at par with the amount offered
by the ninth respondent;
(4) Issue a writ of mandamus or any other appropriate
writ or order or direction commanding the 3rd
respondent to positively consider the offer of the
State of Kerala, as revealed from Exhibits P19 and
P20 letters, before finalizing the Tender pursuant to
Exhibit P13;
(5) Issue a writ of certiorari or any other appropriate writ
or order or direction calling for the records leading to
Exhibit P9 and quash the same, in so far as it limits
the Right of First Refusal (RFP) to the petitioner
State in the manner to plus or minus 10%.
It is submitted that the issuance of writs sought for in the Writ
Petition are against the Airport Authority of India and for issuing
the declarations, the Court has to hear the private parties and
thus only a Writ Court can hear such a petition.
J. For that the High Court failed to appreciate that the dispute
regarding whether the Request For Proposal issued by the
Airport Authority of India is violative of Section 12A of the Airport
Authority Act or whether the State of Kerala is entitled to
preferential consideration over Respondent No.9 in public interest
regards the Concession for Operation, Development and
Management of the Thiruvananthapuram Airport in view of the
mandate of the Airport Authority Act and other questions arises in
the Writ Petition cannot be treated as question “on which the
existence or extent of a legal right depends” as contemplated
under Article 131 of the Constitution, when the lis involves private
parties and a Statutory Authority.
K. For that the High Court erred in holding that the writ petition
seeking to quash the Request For Proposal dated 14.12.2018 is
premature. It is submitted that State has rightly challenged the
Request For Proposal as it violated the right of the State to get
right for first refusal. The second respondent assured the State
of Kerala that there would not be any privatization of
Thiruvananthapuram Airport and that a Special Purpose Vehicle
with State Government and financial institutions as partners could
be created with the value of the State’s property as the State’s
share. The total extent of 636.57 acres of land of the
Thiruvananthapuram Airport is, interalia, made up of 258.06
acres owned exclusively by the State of Kerala in continuation of
the Princely State of Travancore and the United States of
Travancore – Cochin, 32.56 acres acquired by the Government of
Kerala and 8.29 acres of Government land handed over to the
Airports Authority. The Government of India assured the State
that it would be consulted at the time any decision regarding
privatization was taken, taking into account its contribution
towards cost for acquisition of land for Airport expansion. It is
submitted that when a Request For Proposal was issued
containing clauses which negates the rights of the State, the
same can be challenged in the Writ Petition and such challenge
cannot be treated as premature.
L. For that the High Court failed to note that State changed the
tender process itself as it being violative of the preconditions in
Section 12 A (1) of the Airport Authority of India Act. The
conditions for leasing out, viz “public interest” and “better
management of the airport”, were not satisfied in the case of
Thiruvananthapuram Airport. It is submitted that when the leasing
itself is violative of the statutory provisions and the State is an
aggrieved party in the process, the Writ Petition cannot be
dismissed as premature.
M. For that the High Court failed to appreciate that the State
requested the Government of India to form a Special Purpose
Vehicle with regard to Thiruvananthapuram Airport taking into
account its contribution towards the same including in the manner
of providing land free of cost and also expending costs for
acquisition of land and various deliberations were held in this
regard including the grant of right for first refusal. In such a
situation, incorporation of many of the clauses in the Request For
Proposal, which are tailor made to suit Respondent No.9 to the
exclusion of the State, is a question liable to be adjudicated by
the High Court and such a question cannot be rejected as
premature.
N. For that the High Court failed to appreciate that the process of
tender itself is vitiated for many reasons and therefore the Writ
Petition challenging the tender process cannot be rejected as
premature. It is submitted that one of the pre-qualification
condition that the renderer should have previous experience in
Airport management for which previous experience of the State
was not considered by the third respondent. Instead the previous
practice of providing previous experience in Airport management
as a prequalification was deliberately deleted from the RFP
related to Thiruvananthapuram Airport. This is done with a
deliberate attempt to avoid the State Government, which is
having previous experience. It is submitted that though the State
Government has requested for the right of first refusal without any
parameters as regards the tender amount quoted is concerned,
the Airport Authority of India had limited the said right of refusal to
plus or minus 10% of the highest bid. There is no plausible
reason for limiting the rate of refusal of plus or minus 10% of the
highest bid when the State Government is having previous
experience in running Airports and also having the asset
worthiness, at par with or even higher than any other bidder. It
was specifically contented by the State that limiting of the right of
the refusal plus or minus 10% of the highest bid, as regards the
State Government and its entities are concerned, is arbitrary. It is
submitted that on the premise these factual matrix and legal
contentions, the High Court should not have rejected the writ
petition as premature.
6. GROUNDS FOR INTERIM RELIEF
I. That the High Court passed the impugned Judgment dismissing
the Writ Petition filed by the State of Kerala as not maintainable,
holding that the question raised in the Writ Petition is to be
decided by the Hon’ble Supreme Court under Article 131 of the
Constitution of India. The High Court rejected the contention of
the petitioner State of Kerala that the Writ Petition filed under
Article 226 of the Constitution is maintainable, as apart from
Union of India, the Airports Authority of India and its functionaries
are also arrayed as party respondents in the Writ Petition, as also
private respondents 8 to 10 who are necessary parties in the Writ
Petition.
II. It is submitted that this Hon’ble Court in a catena of Judgments
viz. State of Bihar v. Union of India (1970)1 SCC 67, State of
Rajasthan v. Union of India (1977) 3 SCC 592, Union of India
v. State of Rajasthan, (1984) 4 SCC 238 and Tashi Delek
Gaming Solutions Ltd. v. State of Karnataka (2006) 1 SCC
442 held that Article 131 of the Constitution of India does not
contemplate any private party being arrayed as a disputant on
one side or the other and Article 131 will not be applicable where
citizens or private bodies are parties either jointly or in the
alternate with the State or the Government of India.
III. It is submitted that when the maintainability of the writ petition
was properly explained by the petitioner in the writ petition itself
and also in view of the ratio laid down by this Hon’ble Court
regarding the maintainability of a suit under Article 131 of the
Constitution, the High Court should not have dismissed the writ
petition on the ground of maintainability.
IV. It is submitted that that State changed the tender process itself
as it being violative of the preconditions in Section 12 A (1) of the
Airport Authority of India Act. It is submitted that since the writ
petition filed by the State is dismissed on the ground of
maintainability, without adjudicating the legality of the tender
process, it is prayed that the tender process and all further
proceedings pursuant to the Request For Proposal may be
stayed by this Hon’ble Court till the disposal of the Special Leave
Petition, and also the operation of the impugned judgment
otherwise the petitioner will be put to irreparable injury, loss and
hardship.
8. MAIN PRAYER
In view of the above it is most respectfully prayed that this
Hon’ble Court may be pleased to:-
(a) Grant special leave to appeal against the impugned final
common Judgment passed by the High Court of Kerala at
Ernakulam dated 18.12.2019 in W.P.(C)No. 6823 of 2019;
(b) Pass such other order or further orders as this Hon’ble Court
may deem fit and proper in the circumstances of the case.
7. PRAYER FOR INTERIM RELIEF
It is most respectfully prayed that this Hon’ble court may be
pleased to pass:-
(a) An ad-interim ex-parte stay order staying the operation and
implementation of all further proceedings pursuant to the
Request For Proposals issued by the Airport Authority of
India dated 14.12.2018, for concession for Operation,
Development and Management of Thiruvananthapuram
Airport, till the disposal of the Special Leave Petition;
(b) An ad-interim ex-parte stay order staying the operation of
the impugned final common Judgement passed by the
High Court of Kerala at Ernakulam dated 18.12.2019 in
W.P.(C)No. 6823 of 2019;
(c) Pass such other order or further orders as this Hon’ble
Court may deem fit and proper in the circumstances of the
case.
FOR WHICH ACT OF KINDNESS THE HUMBLE PETITIONER SHALL
AS IN DUTY BOUND EVER PRAY.
FILED BY
(C.K SASI)
ADVOCATE FOR THE PETITIONER
Drawn on:01.02.2020
Filed on :03.02.2020
New Delhi.
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
SPECIAL LEAVE PETITION (CIVIL) NO. OF 2020
IN THE MATTER OF:
State of Kerala. ……. Petitioner
Versus
The Union of India & Ors. ……. Respondents
CERTIFICATE
Certified that the Special Leave Petition is confined only to the
pleadings before the Hon’ble High Court of Kerala at Ernakulam whose
order is challenged and the other documents relied upon in those
proceedings. No additional facts, documents or grounds have been
taken therein or relied upon in the Special Leave Petition. It is further
certified that the copies of the Annexures attached to the Special Leave
Petition are necessary to answer the question of law raised in the
petition or to make out grounds urged in the SLP for consideration of
this Hon’ble Court. This certificate is given on the basis of the
instructions given by the petitioner whose affidavit is filed in support of
the Special Leave Petition.
FILED BY
(C.K SASI)
ADVOCATE FOR THE PETITIONER
Filed on:03.02.2020
New Delhi.
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
SPECIAL LEAVE PETITION (CIVIL) NO. OF 2020
IN THE MATTER OF:
State of Kerala. ……. Petitioner
Versus
The Union of India & Ors. ……. Respondents
OFFICE REPORT ON LIMITATION
1. The petition is within time.
2. The petition is barred by time and there is delay of ………..days
in filing the same against order dated 18.12.2019 and petition for
condonation of delay of …………days has been filed.
3. There is a delay of ………..days in filing the petition and petition
for condonation of delay of …………days in refilling has been
filed.
BRANCH OFFICER
New Delhi
Dated :03.02.2020
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
I.A No OF 2020
IN
SPECIAL LEAVE PETITION (CIVIL) NO. OF 2020
IN THE MATTER OF
State of Kerala. ……. Petitioner
Versus
The Union of India & Ors. ……. Respondents
APPLICATION SEEKING PERMISSION TO FILE A LENGTHY
SYNOPSIS AND LIST OF DATES
To,
The Hon’ble the Chief Justice of India
And His companion Justices of the Supreme Court of India
The Humble petition of the petitioner
MOST RESPECTFULLY SHOWETH:
1. That the petitioner has today filed the above Special leave
petition against the impugned final common judgment passed by
the High Court of Kerala at Ernakulam dated 18.12.2019 in
W.P.(C)No. 6823 of 2019.
2. It is submitted that the synopsis and list of dates in the Special
Leave Petition elaborately explains the facts and events which
are important for deciding the issues involved in the case.
Accordingly, the instant Special Leave Petition contains an
elaborate and detailed synopsis and list of dates which is lengthy.
It is submitted that the submissions made in the Synopsis and
List of Dates are extremely relevant and important for
adjudication of the present case. It is therefore prayed that the
application for permission to file a lengthy synopsis and list of
dates may be allowed in the interest of justice.
PRAYER
In the facts and circumstances above-mentioned, the Petitioner most
respectfully pray that this Hon'ble Court may be pleased to:-
a. Permit the Petitioner to file a lengthy Synopsis and List of Dates
in the present Special Leave Petition filed against the impugned
final common judgment passed by the High Court of Kerala at
Ernakulam dated 18.12.2019 in W.P.(C)No. 6823 of 2019;
b. Pass such other and further orders as may be deemed fit by this
Hon'ble Court.
FOR WHICH ACT OF KINDNESS THE HUMBLE PETITIONER SHALL
AS IN DUTY BOUND EVER PRAY.
FILED BY
(C.K SASI)
ADVOCATE FOR THE PETITIONER
Filed on: 03.02.2020
New Delhi
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
SPECIAL LEAVE PETITION (CIVIL) NO. OF 2020
(Arising out of the impugned final common judgment passed by the
High Court of Kerala at Ernakulam dated 18.12.2019 in W.P.(C)No.
6823 of 2019).
WITH PRAYER FOR INTERIM RELIEF
IN THE MATTER OF:
State of Kerala. ……. Petitioner
Versus
The Union of India & Ors. ……. Respondents
WITH
I.A No. of 2020
An Application seeking permission to file a Lengthy Synopsis and List
of Dates.
PAPER BOOK
(FOR INDEX KINDLY SEE INSIDE)
ADVOCATE FOR THE PETITIONER: C.K.SASI
INDEX
Sl.No Particulars of Document Page No. of part to Remarks
which it belongs.
Part 1 Part II
(Contents (Contents
of Paper of file
Book)
alone)
(i) (ii) (iii) (iv) (v)
1. Court fee. 1730/-
2. Office Report on Limitation A A\
3. Listing Performa A1-A2 A1-A2
4. Cover Page of Paper Book A-3
5. Index of Record of Proceedings A-4
6. Limitation Report Prepared by the Registry A-5
7. Defect List A-6
8. Note Sheet NS1--
9. Synopsis and List of Dates B-MM
10. Impugned final common Judgment dated 1-66
18.12.2019 passed by the High Court of Kerala at
Ernakulam in W.P.(C)No. 6823 of 2019.
11. Special Leave Petition with affidavit. 67-88
12. APPENDIX-I
(i)Article 131 of Constitution of India. -89-
(ii)Section 3, 12, 12A and 40 of the Airport 90-95
Authority of India Act, 1994.
13. ANNEXURE-P1: 96-97
A copy of the Letter D.O.No. 1413/SCA/2003
issued by the Secretary, Ministry of Civil Aviation,
Government of India dated 23.04.2003.
14. ANNEXURE-P2: -98-
A copy of the DO No. 20311/D2/97/TRAN dated
7.10.2003.
15. ANNEXURE-P3: -99-
A copy of the D.O.24018/1/99-AAI P-3 dated
02.12.2003.
16. ANNEXURE-P4: 100-102
A true copy of G.O. (MS) No. 11/2004/Trans
dated 16.03.2004.
17. ANNEXURE-P5: 103-105
A true copy of G.O.(MS) No. 82/2005/RD dated
29.03.2005.
18. ANNEXURE-P6: 106-108
A true copy of the Letter D.O.No. 2195/2018/CM
dated 21.11.2018.
19. ANNEXURE-P7: -109-
A copy of Letter D.O.No.AV.24011/141/2015-AD
(Vol-IV) dated 28.11.2018.
20. ANNEXURE-P8: 110-113
True copy of the Minutes of the meeting of the
Empowered Group of Secretaries (EGoS) dated
04.12.2018.
21. ANNEXURE-P9: 114-116
A true copy of Letter D.O.No. 3333/18/CM dated
08.12.2018.
22. ANNEXURE-P10: 117-118
A true copy of Letter DO No. 415/02/2018/Trans
dated 11.12.2018.
23. ANNEXURE-P11: 119-120
A true copy of DO No. AV .24011/141/2015-AD
(Vol-IV) dated 12.12.2018.
24. ANNEXURE-P12: 121-204
A copy of the Request For Proposals issued by
the Airport Authority of India dated 14.12.2018.
25. ANNEXURE-P13: -205-
A copy of Letter No. AAI/KID/PPP/6 Apts/2018
dated 05.02.2019.
26. ANNEXURE-P14: -206-
A copy of the Addendum No.2 dated 08.02.2019
to the revised draft concession agreement.
27. ANNEXURE-P15: 207-212
A Copy of the letter D.O.No.463/19/CM dated
27.02.2019 sent by the Hon'ble Chief Minister of
Kerala to the Hon'ble Prime Minister of India.
28. ANNEXURE-P16: 213-218
A photo copy of the letter D.O.No. 464/19/CM
dated 27.02.2019 sent by the Hon'ble Chief
Minister of Kerala to the Hon'ble Union Minister
for Civil Aviation.
29. ANNEXURE-P17: 219-253
A copy of the Writ Petition W.P.(C) No. 6823 of
2019 (without Exhibits) dated 5.3.2019 filed
before High Court of Kerala.
30. I.A.No. of 2020: 254-255
An Application seeking permission to file a
Lengthy Synopsis and List of Dates.
31. Filing Memo 256
32. Vakalat and Memo of Appearance. 257