S. RAVINDRA BHAT, J.

Facts :

1. The present appeal was preferred originally by the Aero Club of India Ltd. (hereafter “Appellant No. 1” or “ACI”) and the Delhi Flying Club Ltd. (hereafter “Appellant No. 2” or “DFC”). Both challenged the judgment and order of the single judge in writ proceedings (W.P.(C) 11160/2015). DFC is a company limited by guarantee established in 1928 whose objective is the promotion of aviation in India. However, it is admitted that since 2001 the DFC no longer conducts any flying activities. It occupies the premises of the Safdarjung Airport (hereafter “Premise”) on the basis of licence agreements originally executed by the Director General of Civil Aviation (DGCA). In 1986 with enactment of the Airports Authority of India Act (hereafter “the Act”) and the creation of Airports Authority of India (hereafter “AAI”) for administration and regulation of airports, the latter became licensor of the premises.

2. Before creation of the AAI, the DFC was paying a nominal rate of rent of Rs. 1/- per annum and with ancillary payments amounted to a monthly licence fee of Rs. 1079/-. After the creation of the AAI, the DFC was asked to give an undertaking that it wo