CAMBATTA AVIATION LIMITED Vs. COCHIN INTERNATIONAL AIRPORT LIMITED

JUDGEMENT

(1.) This writ appeal is filed by the petitioners in O.P. 25560/1998. First appellant is Cambatta Aviation Ltd., a Company incorporated under the Companies Act and the second appellant is Burjor Nicholson, a shareholder of the first appellant Company. First respondent in the appeal is the Cochin International Airport Limited, which is a Company incorporated under the Indian Companies Act and which has been formed for the purpose of setting up International Airport at Nedumbassery near Cochin. The second respondent is the State of Kerala and the third respondent is the Air India Limited. Respondents 4 and 5 in the appeal got themselves impleaded as additional respondents in the writ petition. The forth respondent is P.S.M. Aviation (Private) Limited and the fifth respondent is the Air India Employees' Guild.

(2.) The first appellant (hereinafter referred to as 'the Cambatta Aviation Limited') is a Company incorporated under the Indian Companies Act and is providing ground handling services to various airlines and has been operating as such at Mumbai and Delhi Airports for more than three decades. Cochin International Airport Limited, hereinafter referred to as 'the CIAL', is a public sector undertaking having many public sector undertakings and the State of Kerala as the shareholder. The Chairman of the first respondent is the Chief Minister of the State of Kerala. The CIAL has been established for setting up a new International Airport at Cochin. It is functioning under the pervasive control of the Government of Kerala. The Original Petition has been filed challenging the decision of respondents 1 and 2 to award the contract for ground handling services at the Airport at Nedumbasserry to the third respondent and for a writ of mandamus directing the first and second respondents to award the same to the first appellant and for other reliefs.

(3.) As already stated, the first respondent, the CIAL was formed for setting up the International Airport at Nedumbassery. With regard to the ground handling services in the Airport, the first respondent initially wrote letters to experts in the field of ground handling. Thus, letters were issued to the first appellant, viz., Cambatta Aviation Limited, and seven others. In those letters, the CIAI had briefly intimated the conditions for granting the contract for ground handling services in the Nedumbassery Airport. In reply to the above letter, the first appellant and others intimated their proposals to the first respondent. Subsequently, by Ext. P5 dated 13-7-1998, the CIAL informed the first appellant and other similar establishments to whom letters were sent previously to give the final offers. A perusal of Exhibit P5 shows that the Board of Directors of the CIAL considered the proposals submitted by various agencies on the establishment and management of ground handling of aircrafts at Nedumbassery Airport at a meeting held on 29th June, 1998. The Board decided that the CIAL proposes to engage a suitable agency for the above services on "Licence Fee" basis on Gross Turnover. The letter further states that since a few new agencies had submitted their offers recently, it was decided to provide a fair opportunity to all the eligible agencies, one final chance to give their best offers before taking a final decision. The contract period will be for ten years. The letter requested the first appellant to offer its best terms for undertaking ground handling services at Cochin International Airport on the following terms :(1) Quantum of Equity Contribution/Interest Free Deposit.(2) Annual Licence Fee to CIAL on percentage basis of gross turnover.(3) The contract period would be for 10 years.Exhibit P5 further went on to state that the selected agency was expected to provide all new equipments sufficient to meet the operational requirements. The total management of ground handling operations including manpower will be the responsibility of the selected agency. Negotiations with airlines for determining the fees will be by CIAL in association with the selected agency. The CIAL would provide the GSE building on rental basis for workshop, office and parking of vehicles, etc. The first appellant was requested to forward its best offer so as to reach the CIAL on or before 1700 hours on 29th July, 1998.