AIRPORTS ECONOMIC REGULATORY AUTHORITY OF INDIA versus DELHI INTERNATIONAL AIRPORT LTD. & ORS.

Citation: [2024] 10 S.C.R. 1404 · Decided: 18-10-2024 · Supreme Court of India · Bench: D.Y. CHANDRACHUD

Cited by 2 judgment(s) · cites 21 · see the full citation network in Lexace

Judgment (excerpt)

[2024] 10 S.C.R. 1404 : 2024 INSC 791
Airports Economic Regulatory Authority of India 
v. 
Delhi International Airport Ltd. & Ors.
(Civil Appeal Nos. 3098-3099 of 2023)
18 October 2024
[Dr Dhananjaya Y Chandrachud,* CJI,  
J.B. Pardiwala and Manoj Misra, JJ.]
Issue for Consideration
Whether Airports Economic Regulatory Authority (AERA) has a 
right to contest an appeal against its order determining tariff for 
aeronautical services before Telecom Disputes Settlement and 
Appellate Tribunal (TDSAT), and then consequently prefer an appeal 
against the order of TDSAT before this Court under Section 31 of 
the Airport Economic Regulatory Authority Act, 2008; and Even if 
AERA does not have a right to contest an appeal against its order 
determining tariff for aeronautical services before TDSAT, does it 
have a right to prefer an appeal against the order of TDSAT before 
this Court in terms of Section 31 of the AERA Act.
Headnotes†
Judicial Authority or quasi-judicial Authority – Whether an 
Authority can be impleaded in an appeal against its order if 
the order was issued solely in exercise of its “adjudicatory 
function”:
Held: An authority (either a judicial or quasi-judicial authority) must 
not be impleaded in an appeal against its order if the order was 
issued solely in exercise of its “adjudicatory function”. [Para 33 (a)]
Judicial Authority or quasi-judicial Authority – Whether an 
Authority can be impleaded as a respondent in the appeal 
against its order if it was issued in exercise of its regulatory 
role:
Held: An authority must be impleaded as a respondent in the 
appeal against its order if it was issued in exercise of its regulatory 
role since the authority would have a vital interest in ensuring the 
protection of public interest. [Para 33(b)]
* Author
[2024] 10 S.C.R. 
1405
Airports Economic Regulatory Authority of India v. 
Delhi International Airport Ltd. & Ors.
Judicial Authority or quasi-judicial Authority – Whether an 
Authority can be impleaded as a respondent in the appeal 
against its order where its presence is necessary:
Held: An authority may be impleaded as a respondent in the 
appeal against its order where its presence is necessary for the 
effective adjudication of the appeal in view of its domain expertise. 
[Para 33(c)]
Airport Economic Regulatory Authority of India Act, 2008 – 
Whether AERA in exercise of its power under Section 13(1)
(a) of the AERA Act is discharging an adjudicatory function:
Held: (a) It cannot be concluded that AERA is performing an 
adjudicatory function merely because Section 13(1)(a) uses the 
phrase “determine” with respect to tariff – This would amount 
to a formalistic interpretation – The Court ought to make an 
assessment by undertaking a holistic analysis; (b) Section 13(1)
(a) lays down seven factors which must be considered by AERA 
for determining the tariff of aeronautical services – It is settled 
that the function can be regarded as legislative even if objective 
guidelines are prescribed for the exercise of the function – Further, 
the provision only prescribes broad guidelines that AERA must 
“take into consideration” – AERA still has sufficient discretion to 
adapt to circumstances and various concerns while determining 
tariff – The Act does not prescribe the weightage that must be 
provided to each of the factors – That is well within the discretion 
of AERA – This is also evident from Section 13(1)(a)(viii) which 
provides that AERA may consider “any other factor which may be 
relevant for the purposes of the Act”; (c) The factors which are 
required to be considered by AERA indicate the underlying policy 
considerations of the assessment – The factors, inter alia, include 
the cost of efficiency and economic and viable operation of major 
airports; (d) Section 13(1A) requires that AERA be consulted 
regarding tariff and tariff structures which are proposed to be 
incorporated in bidding documents – This provision elucidates that 
even if AERA does not in a strict sense, “determine” tariff in terms 
of Section 13(1)(a), it will always be interested in the economic 
viability of airports and in that sense is a regulator of tariff – Thus, 
the considerations of AERA while determining tariff will be those of 
a regulator concerned with public and economic interests, which 
are purely non-adjudicatory considerations; (e) Section 13(2) 
1406
[2024] 10 S.C.R.
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by enabling AERA to amend the tariff structure even before t

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