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Thread: MIAL is a part of 'state', says HC

  1. #1

    MIAL is a part of 'state', says HC


    MIAL(Mumbai
    International Airport Ltd)
    is a part of 'state', says HC
    Reported by Anshika Misra June 06, 2008 in DNA

    MUMBAI: In a landmark judgment with far-reaching consequences for
    private entities, the Bombay high court has held that Mumbai
    International Airport Ltd (MIAL), though registered as a private
    company, performs a public function and is a "state" as defined by the
    Constitution.

    The ruling on Thursday came in a case relating to a contract for the
    new duty-free shopping arcade at the international airport.
    The HC set aside the Rs571-crore retail contract handed by MIAL to
    Hong Kong-based DFS Group to design and manage the arcade.

    "Even though it (MIAL) is registered under the Companies Act, its
    functions in operating, managing and developing the Mumbai
    international airport cannot be characterised as 'purely private',"
    Justice DK Deshmukh and Justice ND Deshpande held.

    The HC has given the MIAL eight weeks to complete the procedure of
    inviting fresh tenders for awarding the contract.
    The order was passed in a petition filed by Dubai-based Flemingo Duty
    Free, which challenged MIAL's action to deny it participation in the
    tender process.

    With the court holding MIAL to be a "state", actions by MIAL can now
    be challenged in court, it comes under the purview of the Right to
    Information (RTI) Act, and it will be subject to the courts' writ
    jurisdiction. (Writs are judicial orders issued to a state or
    government body.)

    MIAL, a consortium led by GVK, is supported by the government in
    operating, managing and developing the Chhatrapati Shivaji
    International Airport (CSIA). Airports Authority of India (AAI) has
    leased out the international airport to MIAL for 30 years. The court
    held that MIAL performs statutory functions and exercises statutory
    powers under the AAI Act, 1994. "It (MIAL) is not a simple lessee of
    property," the judgment stated.

    MIAL had issued a public announcement in October 2006 inviting
    expressions of interest (EOI) for the duty-free retail contract.
    Located in the international terminal 2C at CSIA, the duty-free
    shopping area will be spread across 24,541 square feet.

    MIAL got nine EOIs including one from Flemingo, which was invited to
    make a presentation in November 2006. Eventually, Flamingo was not
    shortlisted. Flemingo challenged MIAL's action in court.

    The HC held MIAL's action to be "arbitrary". "Total absence of any
    reasons in any formal document or evaluation, admitted
    non-communication of any reasons to the petitioner (Flemingo) and
    contradictory untenable stands taken in different affidavits by MIAL
    clearly shows that it has acted in an arbitrary manner in
    short-listing entities," the court held.

    DNA - Mumbai - MIAL is a part of ‘state’, says HC - Daily News & Analysis



  2. #2
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    Re: MIAL is a part of 'state', says HC


    This will be a big relief to various appellants whose matters are pending before CIC/SIC regarding DIAL, BIAL and GMR Hyderabad International Airport.

  3. #3
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    Re: MIAL is a part of 'state', says HC


    Reposted with the attachment
    Last edited by karira; 29-08-08 at 01:29 PM. Reason: Reposted with the attachment

  4. #4
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    C J Karira
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    Re: MIAL is a part of 'state', says HC



    The first of the several Second Appeals has reached CIC and CIC has quoted the High Court decision as well as its own decision on DIAL (Delhi International Airport P Ltd.) in accepting that MIAL is also a Public Authority.

    Members should note the two arguments used bi IC Ansari to arrive at this conclusion:

    - The Mumbai High Court Order
    - The decision of CIC in the DIAL matter where even a shareholding of only 26% was held to be "substantial"

    The full decision is attached to this post.
    Attached Files Attached Files

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