BOC Aviation Pvt. Ltd v. Union of India & Ors.

Delhi High Court · 31 Oct 2023 · 2023:DHC:7972-DB
Manmohan; Mini Pushkarna
W.P.(C) 5169/2013
2023:DHC:7972-DB
civil appeal_allowed Significant

AI Summary

The Delhi High Court upheld the entitlement of Delhi International Airport Limited to encash the Bank Guarantee furnished by BOC Aviation Pvt. Ltd. to recover pre-deregistration charges, following the Supreme Court's ruling.

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W.P.(C) 5169/2013
HIGH COURT OF DELHI
W.P.(C) 5169/2013, CM APPL. 6976/2015 & CM APPL. 55862/2023
BOC AVIATION PVT. LTD ..... Petitioner
Through: Mr. Kuber Dewan with Ms. Neeharika Aggarwal and Mr. Kaustubh Srivastava, Advocates.
VERSUS
UNION OF INDIA & ORS ..... Respondents
Through: Mr. Anurag Ahluwalia, CGSC for UOI Mr. Anirudh Bakhru, Mr. Ayush Puri and Mr. Kanav Madnani, Advocates for R-2.
Mr. Digvijay Rai, Mr. Archit Mishra, Advocates for AAI
Ms. Nippun Sharma and Ms. Anjana Gosain, Advocates for R-4 & 5
Date of Decision: 31st October, 2023
CORAM:
HON'BLE MR. JUSTICE MANMOHAN
HON'BLE MS. JUSTICE MINI PUSHKARNA
JUDGMENT
MINI PUSHKARNA, J: (ORAL)
CM APPL. 55862/2023

1. This is an application on behalf of respondent no. 3 under Section 5 of the Limitation Act read with Section 151 CPC seeking condonation of delay of 31 days in filing its counter affidavit.

2. For the reasons stated in the application, the delay in filing the counter affidavit is condoned. The counter affidavit filed on behalf of respondent NO. 3 is taken on record.

3. Application is disposed of. CM APPL. 6976/2015

4. The present application has been filed under Section 151 CPC on behalf of respondent no. 2/ Delhi International Airport Limited (DIAL) to encash the Bank Guarantee of USD 402,767/- furnished by the petitioner and recover the parking, landing and housing charges in respect of Airbus A320-200 Aircraft bearing registration MSN 2376, which was leased to Kingfisher Airlines, in line with the judgment of the Supreme Court in Civil Appeal No. 2932/2015.

5. It is the case on behalf of respondent no. 2 that Supreme Court in its judgment dated 17th March, 2015 passed in Civil Appeal No. 2932/2015 held that DIAL is at liberty to invoke the Bank Guarantee, which was provided towards charges prior to de-registration of the Aircraft and to recover the arrears of landing, parking or housing fees/ charges in accordance with law.

6. Learned counsel for the respondent no. 3 supports the present application and submits that the respondent no. 2 be allowed to encash the Bank Guarantee in terms of the liberty granted by the Supreme Court.

7. On the other hand, learned counsel for the petitioner submits that he may be granted time to file reply to the present application. He further submits that the judgment dated 17th March, 2015 passed by the Supreme Court in Civil Appeal No. 2932/2015 stands on a different footing and does not apply to the petitioner. He further submits that the amended Regulation is merely clarificatory in nature and therefore, it does have a retrospective effect.

8. Disputing the averments made on behalf of the petitioner, it is submitted on behalf of the respondents that the petitioner has not taken the objection with respect to retrospective effect of the Regulations in the writ petition. It is further submitted that the petitioner has been taking contradictory stands as regards the judgment dated 17th March, 2015 passed by the Supreme Court in Civil Appeal No. 2932/2015. The learned counsel for the respondents, thus, pray that the present application be allowed.

9. Having heard learned counsel for the parties, this Court is not inclined to give further time to the petitioner for filing reply to the present application. Reference in this regard may be made to the order dated 7th August, 2023 passed by this Court, wherein it was clarified that an endeavour shall be made to dispose of the present application and no request for adjournment shall be entertained. Order dated 7th August, 2023 passed by this Court reads as under:

“1. A perusal of the paper book reveals that neither respondents no.1, 3, 4 & 5 have filed their counter affidavits nor notice has been issued in C.M.No.6976/2015 filed by respondent no.2. 2. To obviate any technical objections, issue notice in C.M.No.6976/2015 (SIC) to the non-applicants through counsel. 3. Learned counsel appearing for the petitioner as well as respondents no.1, 3, 4 & 5 accept notice on behalf of the non- applicants. They are directed to file their reply affidavits as well as counter affidavits (by the respondents) within four weeks. Rejoinder affidavits, if any, be filed before the next date of hearing. 4. It is made clear that an endeavour shall be made to dispose of C.M. No.6976/2015 (SIC), if not the writ petition, on the next date of hearing. No request for adjournment shall be entertained. 5. List on 31st October, 2023.”

10. In view of the aforesaid, this Court proceeds to deal with the present application.

11. A lease agreement dated 1st June, 2004 was executed between the petitioner and the Kingfisher Airlines in respect of the Aircraft bearing no. MSN 2376. Subsequently on 9th July, 2013, the aforesaid Aircraft was deregistered by respondent no. 4. Thereafter, on 10th July, 2013, the petitioner terminated the lease agreement dated 1st June, 2004. The present writ petition has been filed seeking enforcement of the policy decision dated 26th March, 2013, whereunder the petitioner is liable to pay parking charges only post de-registration i.e. from 9th July, 2013. However, as per the stand of the respondent no. 2, not only post de-registration charges, but prederegistration charges are also due.

12. While issuing notice in the present writ petition vide order dated 10th September, 2013, the petitioner was permitted to refurbish the aircraft only after payment of all de-registration charges. Subsequently, vide order dated 13th December, 2013, this Court directed the petitioner to submit a Bank Guarantee to the tune of USD 402,767/- to the respondent no. 2 in lieu of pre-deregistration charges. Order dated 13th December, 2013 passed by this Court is reproduced as hereunder: “C.M.No.16701/2013 The present application has been filed with the following prayers:a) Direct the respondents to provide all requisite permits/permissions, clearances and no objections in order to enable the applicant to flyout the Aircraft, which is presently parked at the Indira Gandhi International Airport, which is under the management of the Respondent No.2, on such terms as this Hon’ble Court may direct. Issue notice. Mr.Jain accepts notice on behalf of DIAL. Mr.Rai accepts notice on behalf of AAI. Mr.Dutt as well as Mr.Jain admit that post de-registration, all charges upto 31st December have been paid to DIAL. As far as the disputed amount prior to de-registration, both the counsel are in agreement that subject to the petitioner furnishing a bank guarantee on or before 24th December, 2013 for an amount of US $ 4,02,767/to DIAL, the petitioner/applicant would be at liberty to fly out the aircraft in question on 27th December, 2013. The statement made by both the counsel are accepted by this Court. Petitioner and DIAL are also held bound by the same. Keeping in view the aforesaid agreement, the respondents are directed to process the necessary applications/permissions of the petitioner to fly out the aircraft in question expeditiously. With the aforesaid observations, the application is disposed of.” (Emphasis Supplied)

13. Thus, by order dated 13th December, 2013, this Court permitted the petitioner to fly out the Aircraft in question subject to the petitioner furnishing a Bank Guarantee for an amount of USD 402,767/- towards charges prior to de-registration of the Aircraft. Pursuant thereto, the petitioner furnished a Bank Guarantee on 20th September, 2013 and the aircraft was permitted to fly out on 13th December, 2013.

14. Subsequently, the Supreme Court by its judgment in the case of Delhi International Limited Versus International Lease Finance Corporation & Others[1] held that DIAL was at liberty to invoke the Bank Guarantee to recovers the areas of landing, parking or housing fees/charges in accordance with law. Relevant portion of the said judgment is reproduced hereinunder:

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“28. Unless the minutes of meeting resulted in a final decision taken by the competent authority in terms of Article 77(3) of the Constitution and the decision so taken is communicated to the concerned person, the same was not capable of being enforced by issuing a direction in a writ petition. Without going into the merits of the matter, High Court was not right in disposing of the matter in terms of the minutes of the meeting dated 26.3.2013 and the impugned order is liable to be set aside. 29. In the result, the impugned order is set aside and the appeal is allowed. The appellant is at liberty to invoke the bank guarantee furnished by the respondents. The appellant is also at liberty to recover the arrears of landing, parking or housing fees charges from the concerned respondents in accordance with law. No order as to costs.” (Emphasis Supplied)

15. In view of the aforesaid, it is clear that the respondent no.2/DIAL is entitled to invoke the Bank Guarantee furnished by the petitioner.

16. At this stage, learned counsel for the petitioner submits that he may be granted time to seek instructions as to whether the petitioner is ready to make payment to respondent no.2 directly instead of encashment of Bank Guarantee by respondent no. 2. Learned counsel appearing for respondent no. 2 submits that he has no objection if payment is made directly by the petitioner to respondent no. 2.

17. In view of the aforesaid, it is directed that the petitioner is at liberty to release an amount of USD 402,767/- to the respondent no. 2 within one week from today, failing which the respondent no. 2 would be entitled to encash the Bank Guarantee furnished by the petitioner to the tune of USD 402,767/-.

18. The present application is disposed of accordingly.

19. List for hearing on 13th February, 2024. MINI PUSHKARNA, J MANMOHAN, J OCTOBER 31, 2023