IN THE HIGH COURT OF DELHI AT NEW DELHI
Jyoti Singh, J.
Capt. Gurdeep Singh Tiwana & Anr. – Appellants
Versus
Union of India & Anr. – Respondents
W.P.(C) 6280 of 2021 & CM APPL. 19831 of 2021, 43285 of 2022 & W.P.(C) 6507 of 2021 & CM APPL. 51319 of 2022
Decided On : 17-02-2023
Mandamus - Full and Final Settlement - Air Corporations Act, 1953, Air Corporations (Transfer of Undertakings and Repeal) Act, 1994 - Article 226 of the Constitution of India
Fact of the Case:
The petitioners sought mandamus for full and final settlement and immediate payment of amounts due to them, including unpaid allowances. AIL objected to the maintainability of the writ petitions after its privatization.
Finding of the Court:
The court held that the writ petitions were not maintainable after AIL's privatization and dismissed them, granting the petitioners liberty to seek remedies in an appropriate forum.
Issues: Maintainability of writ petitions after AIL's privatization, liability in case of petitioners' success in establishing claims in a different forum.
Ratio Decidendi: The court relied on the judgment in Naresh Kumar Beri, which held that writ petitions cease to be maintainable after the privatization of AIL.
Final Decision: The writ petitions along with pending applications were dismissed, granting liberty to the petitioners to seek remedies in an appropriate forum.
JUDGMENT
Jyoti Singh, J. (Oral)--Present writ petitions have been filed by the Petitioners seeking the following reliefs and on account of common reliefs and issues raised, both petitions are being disposed of by this common judgment:
"W.P. (C) 6280/2021
a. Issue a writ, order or direction in the nature of mandamus directing the Respondents to undertake all actions, which are necessary to ensure full and final settlement of, and immediate payment of the amounts due to the Petitioners, along with interest @ 12% per annum;
b. Issue a writ, order or direction in the nature of mandamus directing the Respondents to carry out full and final settlement with the Petitioners and make payments of all amounts due to the Petitioners, including the unpaid Flying Allowance and Layover Subsistence Allowance, along with interest thereon;
W.P. (C) 6507/2021
a. Issue a writ, order or direction in the nature of mandamus directing the Respondents to undertake all actions, which are necessary to ensure full and final settlement of, and immediate payment of the amounts due to, the Petitioner, along with interest @ 12% per annum;
b. Issue a writ, order or direction in the nature of mandamus directing the Respondents to carry out full and final settlement with the Petitioner and make payments of all amounts due to the Petitioner, including the unpaid Flying Allowance and Layover Subsistence Allowance, along with interest thereon."
2. Appearing on behalf of AIL, Mr. Rajiv Nayyar, learned Senior Counsel, raises an objection to the maintainability of the writ petitions against AIL, owing to the disinvestment process initiated by the Government of India. It is submitted that originally AIL was a statutory body constituted under the Air Corporations Act, 1953, however, post its repeal and in terms of the Air Corporations (Transfer of Undertakings and Repeal) Act, 1994, it had become a wholly owned company of the Government of India. It is at this stage that the present writ petitions were filed and rightly entertained. However, now AIL has been privatised and the entire shareholding of the Government of India in AIL has been transferred to M/s. Talace Pvt. Ltd., (a wholly owned subsidiary of M/s. Tata Sons Pvt. Ltd.) and thus having ceased to be a Public Body or Authority within the meaning of Article 12 of the Constitution of India, AIL is no longer amenable to writ jurisdiction of this Court under Article 226 of the Constitution. In support of the objection, reliance is placed on the judgment of a Co-ordinate Bench of this Court in Naresh Kumar Beri & Ors. v. Union of India & Ors., 2022 SCC OnLine Del 3585, where this issue was examined and after deliberating on the stands of the respective parties, writ petition was dismissed. Operative para of the judgement is as follows:
"23. The Court also finds merit in the second objection which was addressed on behalf of the respondents who had contended that since AIL had ceased to be a government company by virtue of the exercise of privatization noted above, the writ petition itself would cease to be maintainable. This Court notes that High Courts of the country appear to have consistently taken this position as would be manifest from a reading of the decision rendered in R.S. Madireddy by the Bombay High Court and Tarun Kumar Banerjee by the Karnataka High Court. The said position has also been duly reiterated in the judgments rendered by our Court in Asulal Loya, Ladley Mohan and Satya Sagar. The writ petition would thus warrant dismissal on this score also."
3. Learned counsel for the Petitioners submits that the writ petitions were filed in the year 2021 and ought not to be dismissed only because AIL has now been privatized. An apprehension is also expressed as to who would be liable in case the Petitioners were to succeed in establishing their claims in the Forum which they would now approach for seeking redressal.
4. In order to allay the apprehension expressed by the counsel for the Petitioners, Mr. Nayyar s
Maintainability of writ petitions against a privatized entity under Article 226 of the Constitution of India.
The central legal point established in the judgment is that the privatization of a public body may affect the maintainability of a writ petition under Article 226 of the Constitution of India.
The central legal point established in the judgment is the impact of privatization on the maintainability of a writ petition against a formerly public body, and the court's inability to issue a writ ....
The main legal point established in the judgment is that the privatization of a government-controlled company can affect the maintainability of a writ petition and preclude the court from issuing a w....
The main legal point established in the judgment is that a writ petition may not be maintainable against a privatized company that has ceased to be a public body or authority within the meaning of Ar....
A writ petition under Article 226 of the Constitution of India is not maintainable against a privatized government entity, and subsequent events may render the relief sought incapable of being grante....
A writ petition under Article 226 of the Constitution is not maintainable against a private company, even if it discharges a public function, unless the contract of service is governed or regulated b....
Writ Jurisdiction – Issue about exercise of extra-ordinary writ jurisdiction under Article 226 of Constitution of India would arise only on date when writ petitions were taken up for consideration an....
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