A lease under public authority automatically vests in the successor post-termination, emphasizing the duty of the State to uphold constitutional fairness in contractual obligations.

JUDGMENT

A. PREFACE

1. Delhi International Airport Private Limited [DIAL] has petitioned this Court challenging the letter dated 20 December 2019 issued by the Ministry of Civil Aviation [MoCA] in the Union Government addressed to the third respondent, the Hotel Corporation of India [HCI]. It also seeks setting aside of the stand taken by the Airport Authority of India [AAI] as recorded in paragraph 3 of the aforesaid letter. DIAL additionally assails the Minutes of the Meeting held on 04 November 2019 insofar as it carries directions framed by MoCA. For the sake of completeness of the record, the reliefs which are claimed in the writ petition are extracted hereinbelow:

"In view of the above facts and circumstances, it is most respectfully prayed that this Hon`ble Court be pleased to:

a. Issue a writ of certiorari or any other appropriate writ, direction or order quashing the letter No. AV 18050/245/2015-AI dated 20.12.2019 issued by Respondent No. 1 to Respondent No.3;

b. Issue a writ of certiorari or any other appropriate writ, direction or order setting aside the stand of Respondent No.2 reflected in paragraph (3) of the letter No. AV 18050/245/2015-AI dated 20.12.2019 issued by Respondent No. 1 to Respondent No.3;

c. Issue a writ of certiorari or any other appropriate writ, order or direction quashing the directions passed by Respondent no.1 recorded in the minutes of the meeting held on 04.11.2019 circulated vide Respondent no.1`s letter no. AV 18050/245/2015-AI dated 05.11.2019;

d. Issue a writ of certiorari or any other appropriate writ, direction or order quashing the Notice Inviting Tender No. HCI/RFP/2020/101 dated 16.09.2020 issued by Respondent No.3 titled 'Request for Proposal for Selection of Consultant to run Centaur Hotel and Chefair Flight Catering under O&M Contract`;

e. Issue a writ of mandamus or any other appropriate writ, direction or order directing Respondent No.3 to handover vacant possession of the land, admeasuring approximately 45,000 square metres (forty five thousand square metres) and shown in red in the sketch annexed as Schedule A to the Lease Deed dated 21.03.2002 executed between Respondents No. 2 and 3;

f. Issue a writ of mandamus or any other appropriate writ, direction or order directing Respondent No.3 to clear the outstanding dues of the Petitioner amounting to about Rs. 78.99 crores as claimed by the Petitioner in its letter no. DIAL/2020-21/CEO-Office/575 dated 05.11.2020 issued by the Petitioner to Respondent No. 3;

g. Pass any other order(s) as this Hon'ble Court may deem fit and proper in the facts and circumstances of the case and in the interests of justice;"

2. The challenge is essentially mounted based on the decision of MoCA and AAI to resurrect and revive a lease which had been granted to HCI and is asserted to have been terminated in terms of the communication addressed by AAI dated 08 November 2016. The petitioner essentially contends that once AAI had proceeded to terminate the lease, they stood denuded of the jurisdiction to either issue directions permitting it to continue to occupy the land parcel which formed subject matter of the lease or to perpetuate the lease interest once the same had come to be terminated. The challenge is based upon the provisions of the Operation, Management and Development Agreement [OMDA] which came to be executed between AAI and DIAL on 04 April 2006 and the DIAL Lease Deed dated 25 April 2006 [DIAL Lease] executed between the aforenoted parties and in terms of which, on an early termination of "existing leases", land comprised therein was to stand transferred to DIAL and form an integral part of "demised premises" as defined and envisaged therein. Before proceeding further and in order to appreciate the challenge which stands mounted it would be relevant to advert to the following salient facts.

B. ESSENTIAL FACTS

3. On 21 March 2002 AAI executed a Lease Deed [HCI Lease Deed] in favor of HCI in respect of a land parcel comprising of 3