HC stays proceedings in AERAAT over airport charges

The Delhi High Court today stayed proceedings in the Airports Economic Regulatory Authority Appellate Tribunal (AERAAT) in relation to a plea challenging Bangalore International Aiport Ltd's (BIAL) decision to start collecting aeronautical services charges from airlines.
Common User Terminal Equipment (CUTE), Common User Self Service (CUSS) and Baggage Reconciliation System (BRS) charges, categorised as aeronautical services, were to be recovered from airlines from July 1, 2014 as per a June 10 tariff order of Airports Economic Regulatory Authority (AERA).
A two-member bench of the Tribunal had on July 1 directed that the status quo be maintained with respect to the recovery of these charges on an urgent plea by the Federation of Indian Airlines (FIA).

The high court today stayed the proceedings in the Tribunal on a plea by BIAL which has contended these charges are being collected by other airports in the country, so there is nothing new about the same.
BIAL has alleged that airlines, despite getting a status quo order preventing recovery of the charges from them, are collecting the same from passengers.
Senior advocate and former Telecom Minister Kapil Sibal, appearing for BIAL, contended this practice of collecting the charges from passengers and not paying it to the airport amounts to "unjust enrichment".

He also questioned how a two-member bench of the Tribunal can pass the order when, as per the statute, a three-member quorum has to preside over the matter.

He also contended that the tenure of one of the members of Tribunal had expired in 2013 and thus the bench does not exist in the eyes of law.
This view was supported by AERA, represented by senior advocate Atul Nanda.
However, the Federation of Indian Airlines, represented by senior advocate A S Chandhiok, opposed the claim of BIAL and said the Tribunal was competent to pass the order of July 1.
The court will hear the matter on July 28.