In a landmark judgment, the Supreme Court has affirmed the right of the Airports Economic Regulatory Authority of India (AERA) to challenge orders issued by the Telecom Disputes Settlement and Appellate Tribunal (TDSAT). This decision allows AERA to proceed with its appeal against a TDSAT ruling that restricted its regulatory authority over certain airport services.
The ruling was delivered by a bench headed by Chief Justice of India DY Chandrachud, alongside Justices JB Pardiwala and Manoj Misra. The Court’s decision effectively dismisses preliminary objections that were raised by several airports, arguing that AERA’s role as a quasi-judicial body precludes it from appealing as a litigant.
The dispute originated from a TDSAT order that exempted specific airport services such as cargo handling and ground services from AERA’s tariff imposition, labeling them as non-aeronautical services. This categorization by TDSAT excluded these services from falling under AERA’s regulatory domain, a decision AERA sought to challenge.
The Supreme Court’s judgment clarified that AERA’s appeal is “maintainable,” setting the stage for the case to be heard in detail. “The appeals by AERA against the TDSAT order are held to be maintainable. Registry to list the appeals for hearing,” declared the Supreme Court, allowing the regulatory body to contest the limitations imposed on its powers by TDSAT.
Established in 2009, AERA’s mandate includes regulating tariffs for aeronautical services and determining charges for other services provided at major airports, along with monitoring performance standards.
The question at the heart of the legal battle was whether AERA could appeal a TDSAT decision under Section 18 of the Airports Economic Regulatory Authority of India Act, which pertains to appellate jurisdiction. The Supreme Court’s affirmation not only paves the way for AERA to argue its case but also reinforces the principle that regulatory bodies have the right to appeal decisions that critically affect their regulatory scope and authority.
