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Ayamu C.K. vs Union Of India (Uoi) And Ors.

High Court Of Kerala|01 July, 1998

JUDGMENT / ORDER

K.A. Abdul Gafoor, J. 1. The petitioners in these cases have approached this Court aggrieved by the levy imposed on the international passengers boarding from Calicut Airport. Exhibit R2(a) in O.P. No. 13461/1996 is the order impugned in these original petitions. That order was issued by the Government of India under Section 17 of the National Airports Authority Act, 1985 granting approval "to the imposition of a Development User's Additional Fee from embarking international passengers at Calicut Airport in Kerala at a uniform rate of Rs. 500/- per passenger". It is ordered that the "amount so collected would be utilised for the expansion and development of the Calicut Airport runway in accordance with the Memorandum of Understanding to be signed between National Airports Authority and the Malabar International Airports Development Society". Subsequently, that was modified by Ext. R2(b) dated 4th April, 1995 to the effect that the amount collected would be used for paymen' of interest on the amount raised by Malabar International Airport Development Society (MIADS) for the expansion and development of the Calicut airport runway. The petitioners contend that the levy imposed by Ext. R2(a) is unauthorised as the levy is really made by the said society and not by the Airport Authority. In terms of Section 17 of the Act the Airport Authority alone can charge any fee or rent from the passengers. The society cannot charge such fee. So, it is an unauthorised collection of levy. It is also contended that for the expansion of runway such fee cannot be collected even by the Airport Authority from the passengers. Development of runway is for the purpose of landing, housing or parking of aircraft or for any other service or facility offered in connection with aircraft operation and such fee can be levied only from the airliners and not from the passengers. So, on that ground also, it is an unauthorised levy.
2. Section 17 of the National Airports Authority Act, 1985 which is now superseded by the Airports Authority of India Act, 1995 (1994) reads as follows :
"17. Power of the Authority to charge fees, rent etc. (1) The authority may,--
(i) with the previous approval of the Central Government, charge fees or rent,--
(a) for the landing, housing or parking of aircraft or for any other service or facility offered in connection with aircraft operations at any aerodrome or heliport.
Explanation -- In this sub-clause 'aircraft' does not include an aircraft belonging to any armed force of the Union and "aircraft operations" do not include operations of any aircraft belonging to the said force;
(b) for providing air traffic services, ground safety services, aeronautical communications and navigational aids and meteorological services at any aerodrome and at any aeronautical communication stations;
(c) for the amenities given to the passengers and visitors at any aerodrome, civil enclave or heliport;
(d) for the use and enjoyment by persons of facilities and other services provided by the Authority at any aerodrome, civil enclave or heliport;
(ii) with due regard to the instructions that the Central Government may give to the Authority, from time to time, charge fees for rent from persons who are given by the authority any facility or rent from persons who are given by the authority any facility for carrying on any trade or business at any aerodrome or heliport.
(2) The authority may also charge, with the previous approval of the Central Government, fees for providing air navigation services: referred to in Sub-section (4) of Section 12 at the airports to which the International Airports Authority Act. 1971 (43 of 1971) applies".
3. The scheme of the said Section is that the power to collect any fee vests with the Airport Authority. Previous approval of the Central Government has to be obtained. The Airport Authority is enabled to charge fees for landing, housing or parking of aircraft or for such other facility offered in connection with the aircraft operations. The Airport Authority can also charge fee for providing air traffic services, ground safety services, aeronautical communications and navigational aids and meteorological services. These arc facilities rendered to airliners. Necessarily any fee or charge or rent shall be levied only from them, under the said heads. Under the said section, the airport authority is also enabled to collect fee from the passengers for the amenities given to them and the visitors in any aerodrome, civil enclave or heliport and for the use and enjoyment by persons of facilities and other services provided at aerodrome or heliport. The runway or its development is not an amenity given to the passengers or the visitors, or is not a facility for enjoyment by persons the services provided at aerodrome or civil enclave or heliport. The runway and its development is a service rendered for the purpose of landing, housing and parking of aircraft. Those are services rendered to airliners. Therefore, such a levy can only be made from the airliners and not from passengers. Admittedly in these cases, both by airport authority and the said society, the levy is made for the purpose of paying the interest on the loan amount utilised for the development of runway. In other words, it is to meet expenses in connection with the development of runway. Such a levy can only be made from the airliners and not from the passengers. On that reason itself, the levy imposed on the onerous passengers is incompetent and unauthorised.
4. It is specifically contended in the counter affidavit of the 2nd respondent, the then International Airport Authority as follows :
"At the outset it is stated that Users Development Additional Fee is not charged by the Airports Authority of India. The said charges were levied by the Malabar International Airport Development Society through State Bank of Travartcore in terms of the orders of Ministry of Tourism and Civil Aviation Vide No. AV.20036/ 8/9 1-B dated 6-3-95 and 4-4-95. The money thus collected is to be utilised by the Malabar International Airport Development Society (MIADS) for payment of interest on the amount raised by them for the expansion and development of the Calicut Airport runway".
Thus, the levy is collected by the MIADS and not by the Airport Authority. The amount is used to meet the liability of MIADS by way of interest for the loan availed of by them. The Airport authority is not collecting the amount. The airport authority is not utilising the amount. Section 17 extracted above makes it clear that the Airport authority alone can charge fees or rent.
5. In these cases, the User's Development Fee is levied "by the Malabar International Airport Development Society" as contended by the Airport Authority themselves. That means, that is an unauthorised levy which is impermissible. The Act docs not give power to MIADS, a voluntary association, to impose such levy. None can levy any amounts from public using public places unless authorised by law. Law does not authorise MIADS to collect such levy. On the other hand, the authority which had bccn.authorised by Section 17 of the Act to impose such levy had made it clear that they are not levying any fees. Therefore, collection now made from the passengers is unauthorised. On that ground also, the levy cannot he sustained. Thus, it is made clear that the permission granted in Ext. R2(a) to MIADS to collect Development User's Additional Fee is unauthorised. The MIADS shall not collect any such fee from tomorrow onwards.
6. As at present, amounts have been collected during the last two years from the public and it has been made use of by MIADS. Balance amount if" any available with them after meeting interest due as on today shall be handed over to the Airport authority.
O.Ps. are disposed of as above. No costs.
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Title

Ayamu C.K. vs Union Of India (Uoi) And Ors.

Court

High Court Of Kerala

JudgmentDate
01 July, 1998
Judges
  • K A Gafoor