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2006 Supreme(Online)(Del) 4

IN THE HIGH COURT OF DELHI AT NEW DELHI
A. K. Pathak, J
International Airport Authority of India Officers Association – Appellant
Versus
Union of India – Respondent
Writ Petition



Advocates:
For the Appellants/Petitioners: Mr. Parag Tripathi
For the Respondents: Mr. P. P. Malhotra, Mr. V. P. Singh

The provisions of a statute must be interpreted harmoniously to avoid inconsistency between its sections.

Headnote:(A) Airport Authority of India Act, 1994 - Section 12(1), (2), (3) - Constitution of India - Articles 14 and 21 - The writ petition challenges the constitutional validity of Section 12(3)(r) of the AAI Act claiming it is inconsistent with Sections 12(1) and 12(2) and ultra vires Articles 14 and 21. The petitioner's contention is that this legislative action done via Executive violates the procedural requirement of rule-making through legislation. The counter-argument stresses on harmonious construction of overlapping functions not leading to inconsistency. (Paras 2-12)

Findings of Court:
Both provisions of the AAI Act can co-exist and serve complementary roles; hence there is no irreconcilability found. Writ petition dismissed.

Issues: Concerns the legislative function versus Executive action in airport privatization.

Ratio Decidendi: Courts should harmonize provisions that appear conflicting rather than deem them irreconcilable.

Result: Writ petition dismissed.

Table of Content
1. challenge to legislative function under airport privatization. (Para 2 , 3 , 4)
2. court's view on harmonious interpretation of overlapping statutory provisions. (Para 5 , 7 , 9 , 10 , 12)
3. arguments on interpretation and harmony between provisions. (Para 6 , 8 , 11)
4. conclusion of dismissal of writ petition. (Para 13 , 14)

1. Rule DB. With the consent of the learned counsel for the parties, the writ petition is taken up for final hearing.

2. This writ petition challenges the constitutional validity of the Section 12 (3) (r) of the Airport Authority of India Act, 1994 (hereinafter referred to as the 'AAI Act') as being inconsistent with the provisions of the Section 12 (1) and 12 (2) of the said AAI Act as well as on the ground of being ultra vires of Articles 14 and 21 of the Constitution of India. The petitioner, International Airport Authority of India Officers Association through its General Secretary, New Delhi (hereinafter referred to as the 'Association') is a registered association representing approximately 1000 officers of the International Airport Division of the Airport Authority of India whereas the entire strength of the Airport Authority of India is approximately 20,000 employees working under it. The respondent No. 1 is the Union of India through Secretary, Ministry of Civil Aviation, Govt. of India, New Delhi (hereinafter referred to as the 'UOI'). The respondent No. 2 is the Airport Authority of India through its Chairman, New Delhi (hereinafter referred to as the 'AAI'). Mr. Parag Tripathi, the learned senior counsel appearing on behalf of the petitioner association has not relied upon the violation of Article 21 of the Constitution but has confined his pleas to the inconsistency of Section 12 (r)(3) of the AAI Act with the provisions of Section 12 (1) and 12 (2) of the said AAI Act. He has thus contended that the inconsistency was so arbitrary and unreasonable so as to make it violative of Article 14 of the Constitution.

3. The present writ petition has been occasioned by the answer to a Parliamentary question wherein it was stated as follows :-

"PARLIAMENT QUESTIONS GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA STARRED QUESTION NO. 56 TO BE ANSWERED ON 3-3-2005 PRIVATISATION OF AIRPORTS 56. SHRI JOACHIM BAXLA, ANANTH KUMAR

Will the Minister of Civil Aviation be pleased to state :-

(a) Whether the Government is considering to privatize some of the Airports in the country;

(b) If so, the details thereof and the reasons therefore

(c) The airports selected for privatization;

xxxx xxxx xxxx

ANSWER

........(a), (b) and (c) : Government has already accorded its approval on 11-9-2003 for restructuring and modernisation of the international airports at Delhi and Mumbai through the formation of two separate Joint Venture Companies (JVCs) for world class development and expansion. Airports Authority of India (AAI) and other Public Sector Undertakings (PSUs) of Government of India will hold 26% equity with the remaining 74% equity held by the private sector partner(s)....."

4. One of the pleas canvassed by the learned senior counsel for the association was that in the guise of Executive action, an essential legislative function will be performed by the proposed action of privatization and modernization of the international airports at Delhi and Mumbai through the formation of 2 joint venture companies where the UOI will hold 26% equity and the remaining 74% equity will be held by the private sector partners. This plea was illustrated by submitting that Section 12 (1) of the said AAI Act contemplated that the rules, if any, made by the Central Government were required under Section 12 (1) to be placed before the Parliament. Since the impugned Executive action of the formation of joint venture companies seeks to bye-pass the Parliament by not adopting the route available under Section 12 (1) of the Act of making rules which necessitates the placing of such rules before the Parliament, a collateral m


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