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2024 Supreme(Online)(KER) 6124

HIGH COURT OF KERALA
AMIT RAWAL, C.S. Sudha, JJ
INTER GLOBE AVIATION LTD. (INDIGO) – Appellant
Versus
CELEBI AIRPORT SERVICE INDIA PRIVATE LIMITED – Respondent
WA 1354/2021



The Central Government is the appropriate authority for Ground Handling services under relevant labor laws, while the State Government retains authority for local laws.

Headnote:(A) Airport Authority of India Act, 1994 - Sections 2(e) and 2(nn) - Industrial Dispute Act, 1947 - Jurisdiction of appropriate Government clarified - The Single Bench held that the Central Government is the appropriate authority for Ground Handling Services under relevant labor laws, while the State Government holds authority for local laws. (Paras 51, 85)

(B) Jurisdiction - The court emphasized the distinction between Central and State Government powers regarding labor laws applicable to Ground Handling Agencies, noting previous judgments and statutory definitions. (Paras 9, 10)

Facts of the case:
The petitioner, a Ground Handling service provider at Cochin International Airport, challenged notices from the State regarding non-compliance with labor laws, arguing jurisdiction should lie with the Central Government under specific Acts.

Findings of Court:
The court upheld the Single Bench's ruling that the Central Government is the appropriate authority for certain labor laws applicable to Ground Handling services, dismissing the appeals by the State. (Paras 51, 85)

Issues: The primary issues were the determination of the appropriate Government for labor law compliance concerning Ground Handling services and the validity of notices issued by the State. (Paras 6, 9)

Ratio Decidendi: The court reasoned that the definitions in the Airport Authority of India Act and related regulations clarify the jurisdiction of the Central Government over Ground Handling services, thus supporting the Single Bench's ruling. (Paras 10, 20)

Result: Both writ appeals dismissed.

JUDGMENT

[WA Nos.240/2021, 1354/2021]

Amit Rawal, J.

1. This order shall dispose of two writ appeals against the judgment of the Single Bench dated 18.05.2020 rendered in W.P.(C)No.3371/2019.

2. 1st respondent/petitioner a private limited company, holder of Concession Agreement entered with Cochin International Airport Limited (hereinafter called ‘CIAL’ for short) for providing Ground Handling facility at the Airport, was served with notices by the State Government regarding the non-compliance of various provisions of the Acts, which according to them were within the domain of the Central Government. Learned Single Judge after noticing the case law at length on this point, provisions of Airport Authority Act and various provisions of the Payment of Wages Act, Minimum Wages Act, Maternity Benefit Act, Kerala Shops and Commercial Establishments Act, Industrial Dispute Act, and Payment of Bonus Act, allowed the writ petition to the extent that for the purpose of implementation of the provisions of Payment of Bonus Act, Payment of Wages Act, Minimum Wages Act, Industrial Dispute Act, and other Central Acts, it would be the Central Government and for the purpose of other Acts like Maternity Act, Kerala Shops and Commercial Establishment Act, Kerala Industrial Establishments (National and Festival Holidays) Act, State Government would be the authority. The Labour Commissioner-respondent No.6 in the writ petition on receipt of the representation of the workers union, would decide the grievances of the members of the Union with regard to the applicability of the laws like Kerala Shops and Commercial Establishment Act, etc., for which the State would have the power. W.A.240/21 has been filed by the State against the aforesaid directions whereas the other writ appeal No.1354/21 has been filed on behalf M/s.Inter Globe Aviation (Indigo) represented by its Associate General Council, by seeking leave of this Court, for, they were not impleaded or party in the writ petition.

3. The grievance of the respondent/writ petitioner before the Single Bench, in brief, is enumerated as under:

It is an Airport service known as CELEBI Airport Service, a licensed Ground Handling service having registered office at Delhi. The Company had entered into an agreement with CIAL which invited tenders for appointment of second and third Ground Handling services for providing third party Ground Handling services at Cochin International Airport. Clause 1.4 of the terms and conditions of the tender dealt with the definitions and abbreviations which would mean all laws brought into force and effected by Government of India, Government of Kerala including the local bodies and statutory agencies, rules, regulations, notifications made thereunder and judgments decrees injunctions, writs and orders of any other court, as may be in force shall be applicable to the tender and services rendered under this tender. It would also include the laws, rules, regulations, directives etc., made by Ministry of Civil Aviation, Director General of Civil Aviation (DGCA), Bureau of Civil Aviation Security (BCAS) other statutory agencies. The Ground Handling Agency was given an abbreviation as GHA which would mean the successful bidder who is awarded the contract for providing third party Ground Handling services at Airport. Clause 8 of the aforementioned Concession Agreement deals with the responsibilities of GHA and CIAL. Besides all other facilities, the services excluded from the purview of GHA was security services at airlines, aircraft engineering services, cargo and mail acceptance, delivery, handling inside the cargo terminals, warehouses, flight kitchen, passengers seating arrangement at General Concourse of Terminal/Security Hold and Lounges in the security hold, provision and management of hand baggage trolleys for passengers, refuelling of aircrafts; with respect to VVIP special flights, CIAL would have the right to determine which of the Ground Handling Agency will carry out the

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