KOCHI: A Division Bench of the Kerala High Court on Tuesday declined to issue an interim order staying further proceedings on the Central government's order approving the grant of the lease on the right of operation, management and development of the Thiruvananthapuram International Airport to Adani Enterprises Limited for 50 years.
When the petition filed by the state government came up for hearing, the Bench decided to adjourn the case for final hearing on September 15.
The court also directed the parties in the case to wrap up their arguments before September 9.
The state argued that the leasing out of buildings and structures as well as other premises of the Airport was not in the public interest.
The Supreme Court had set aside the judgment of the High Court dismissing the government’s writ petition against the Airport Authority of India's (AAI) 'Request for Proposal' to grant the right of operation, management and development of the airport to Adani Enterprises Limited.
The Supreme Court had also sent back the matter to the High Court for considering the government's challenge on merit.
However, during the pendency of the writ petition, the Centre had now approved the lease in favour of the Adani group under section 12A of the Airports Authority of India Act 1994.
It was understood that necessary contractual transactions would be entered into by the Central government, AAI and the company following the approval from the Centre.
In fact, the State government had substantial proprietary and other rights over the land on which the airport was constructed.
The government had pointed out that the Centre had assured the State in 2003 that considering the contribution made by the State for the acquisition of additional land for the airport, the Government would be consulted at the time when a decision to privatise the management of the airport was taken.
This assurance was violated.
The High Court while dismissing the government's plea had observed that the dispute was between the State of Kerala and the Union government.
Only the Supreme Court, and not high courts, had jurisdiction in such Centre-State disputes.
Kerala should have directly filed a suit under Article 131 in the Supreme Court, the High Court had observed.
In its writ petition, the government had contended that the attempt of the AAI to grant the right of operation, management, and development of the airport to Adani Enterprises Limited which has no previous experience in managing airports, was not in the public interest and violated the provisions of the Airports Authority of India Act as well as the proprietary right of the State Government over the land where the airport was situated.
The Central Government had also declined the request of the State to transfer the operation of the airport to the Government, which could form a special purpose vehicle and tie up with a partner with proven experience in the management of the airport.
In fact, the state government had a preferential right to get the contract in the public interest.