“AERA Appeal Against TDSAT Order Over Levying Of Tariff Maintainable”: SC Rules

AERA Appeal Against TDSAT Order

The Supreme Court on Friday has ruled that the Airports Economic Regulatory Authority has the right to appeal decisions made by the Telecommunications Dispute Settlement and Appellate Tribunal concerning aeronautical charges.

A bench comprising Chief Justice of India D.Y. Chandrachud, Justice J.B. Pardiwala, and Justice Manoj Misra clarified that AERA’s appeals against TDSAT’s ruling—asserting that AERA cannot impose tariffs on ground and cargo handling services—are maintainable. The court emphasized AERA’s statutory responsibility to regulate tariffs while balancing the operational viability of airports with public interests.

“When AERA determines tariffs for aeronautical services under Section 13(1)(a) of the AERA Act, it acts as a regulator and has a vested interest in the public good, not for personal gain,” the bench stated.

“Thus, AERA must be included as a respondent in appeals regarding its tariff orders before TDSAT.”

The court noted that even if the statute does not explicitly allow for it, AERA can be included as a respondent based on its designated role and responsibilities.

In a previous ruling, TDSAT had asserted that AERA lacked the authority to impose tariffs on ground and cargo handling services, categorizing these as “non-aeronautical services” under the AERA Act of 2008.

This decision stemmed from a January 13, 2023, plea by Delhi International Airport Ltd. and Mumbai International Airport Ltd., which challenged AERA’s communications regarding tariff implementation.

The Supreme Court directed its Registry to schedule the matter for adjudication before a regular bench, allowing for a detailed examination of the appeals on their merits.

This ruling underscores the critical role of AERA in maintaining a balance between economic viability and public interest in airport operations, ensuring that regulations serve both industry stakeholders and the traveling public effectively.