AIRPORTS AUTHORITY OF INDIA Vs MUMBAI INTERNATIONAL AIRPORT LIMITED & ANR.
FAO(OS) (COMM) 168/2020 Page 1 of 5
#SB-1
IN THE HIGH COURT OF DELHI AT NEW DELHI
Judgment Delivered On : 14.01.2021
FAO(OS) (COMM) 168/2020 , CM APPL. 31791/2020 (Stay) &
CM APPL. 31792/2020 (File lengthy synopsis) and CM APPL.
31794/2020 (Bring on record subsequent facts/events/documents)
AIRPORTS AUTHORITY OF INDIA ….. Appellant
versus
MUMBAI INTERNATIONAL AIRPORT
LIMITED & ANR. …..Respondents
Advocates who appeared in this case:
For the Appellant : Mr. Tushar Mehta, Solicitor General of India with Mr. Karan
Lahiri, Mr. Arshiya Sharda, Mr. Prateek Arora and Mr.
Shailender Reddy, Advocates
For the Respondent s : Dr. Abhishek Manu Singhvi, Senior Advocate with Mr. Kartik
Nayar, Ms. Madhavi Khanna, Mr. Sarthak Malhotra and Ms.
Ashima Singh Chauhan, Advocates for R -1
Mr. S.L. Gupta, Advocate for R -2
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FAO(OS) (COMM) 168/2020 Page 2 of 5
CORAM:
HON’BLE MR. JUSTICE SIDDHARTH MRIDUL
HON’BLE MR. MR. JUSTICE TALWANT SINGH
J U D G M E N T
SIDDHARTH MRIDUL , J. (Open Court -via Video Conferencing )
1. The present appeal under Section 37(1)(b) of the Arbitration
and Conciliation Act, 1996 read with Section 13 of the Commercial
Courts Act, 2015 against the impugned order dated 27.11.2020 in
OMP (I) (COMM) No.174 of 2020 passed by the learned Single Judge
prays as follows: –
(a) Set aside the Impugned Final Judgment and Order
dated 27.11.2020 passed in OMP (I) (COMM.) No.
174/2020 passed by the Ld. Single Judge of this
Hon’ble Court;
(b) Award costs of the present proceedings to the
Appellant and against the Respondent; and
(c) Pass such other or further order or orders or such
directions as this Hon’ble Court may deem fit and
proper in the facts and circumstances of the case and
to meet the ends of justice.
2. Having heard Mr. Tushar Mehta, learned Solicitor General of
India, appearing on behalf of the appellant -Airports Authority of
India, Dr. Abhishek Manu Singhvi, learned Senior Advocate
appearing on behalf of respondent No.1 -Mumbai International Airport
Limited, as well as, Mr. S.L. Gupta, learned counsel appearing on
behalf of respondent No.2 -State Bank of India , the only course of
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action that commends itself to us is to dispose of the present appeal by
issuing the following directions: –
(i) In partial modification of the directions as contained
in Paragraph 46(i) of the Judgment and Order dated
27.11.2020 of the Hon’ble Single Judge as passed in
OMP (I)(COMM) 174/ 2020, MIAL shall maintain a
balance of Rs. 153 crores in a separate interest
bearing account / fixed deposit with SBI so as to
secure any alleged claim of AAI as against MIAL in
relation to the alleged pending Annual Fee for the
period prior to the passing of the Order dated
27.11.2020, i.e. April 2020 to November 2020
(excluding the amount transferred to AAI for the
month of July 2020 and without adjusting for the
alleged excess a mounts paid by MIAL in FY 19 -20).
This is subject to reconciliation and verification by
the Independent Auditor appointed under the OMDA
including with regard to the alleged excess amounts
paid. It is made clear that this is without prejudice to
all rights and contentions of the parties, including in
respect of the liability and/or quantification of the
Annual Fee for the period in question, if found
payable by the Arbitral Tribunal.
(ii) The prospective directions of the Ld. Single Judge at
Paragraph 46(i) of t he Judgment and Order dated
27.11.2020 in OMP (I) COMM. No. 174/2020 shall
continue, i.e. 38.7% of the actual revenue , received by
MIAL, from the date of the Order , i.e. 27.11.2020 ,
shall remain deposited in the Proceeds Account. This
shall not apply to re venue received/receivable prior to
the Order, even if received thereafter. This will
however be subject to the ultimate reconciliation to be
carried out by the Independent Auditor under the
OMDA.
(iii) Subject to Para 1 above and in partial modification of
the d irections as contained in Paragraph 46(iii) of the
Judgment and Order dated 27.11.2020 of the Hon’ble
Single Judge as passed in OMP (I)(COMM) 174/
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FAO(OS) (COMM) 168/2020 Page 4 of 5
2020, the entire balance amounts in the Proceeds
Account, after satisfaction of Statutory Dues (for
which mon ies shall be retained in the Statutory Dues
Account), shall be forthwith transferred to the Surplus
Account by SBI upon a request by MIAL to SBI and
MIAL shall be entitled to disburse and utilize the
same, so as to ensure that there are no restrictions in
the utilization of MIAL of these balance amounts as
per the OMDA.
(iv) Subject to Para 2 above, as regards the future amounts
that maybe deposited in the Proceeds Account,
subject to certain amounts remaining deposited in the
Proceeds Account, as given above, the balance sums
after satisfaction of Statutory Dues, shall be forthwith
transferred to the Surplus Account by SBI upon a
request by MIAL to SBI and MIAL shall be entitled
to disburse and utilize the said amounts and there
shall be no restrictions in the utilization of MIAL of
these balance amounts as per the OMDA.
(v) It is clarified that all such utilization by MIAL shall
be strictly accounted, in monthly account statements
to be provided to AAI and SBI, as set out in
Paragraph 46(iii) of the Order dated 2 7.11.2020
passed by the Hon’ble Single Judge.
(vi) This direction shall be without prejudice to the rights
and contentions of the Parties and shall continue till
the decision is rendered by the Arbitral Tribunal in the
Interim Applications under Section 17 of t he
Arbitration and Conciliation Act, 1996. The Arbitral
Tribunal shall be at liberty to alter/ modify this
interim arrangement as it deems fit.
(vii) As already expressed by the Ld. Single Judge in
Paragraph 46(x) of the Impugned Order, the Tribunal
shall decide any application instituted on behalf of the
parties under Section 17 of the 1996 Act and the
arbitration itself without being influenced in any
manner by any observation or finding made in the
Impugned Order.
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3. The parties are directed to comply with the aforesaid directions
without demur, both in letter and spirit.
4. No further directions are called for.
5. The appeal is disposed of accordingly. The pending
applications also stand disposed of.
SIDDHARTH MRIDUL
JUDGE
TALWANT SINGH
JUDGE
JANUARY 14 , 202 1/dn
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