Apex court quashes MIAL appeal to intervene in AAI-Regency tussle

The Supreme Court today dismissed an appeal by Mumbai International Airport (P) Ltd (MIAL) seeking to be a party in the lawsuit between Airport Authority of India and Regency Convention Centre & Hotels (P) Ltd.

Following a competitive bidding process, Chhatrapati Shivaji International Airport in Mumbai was handed over to MIAL for operation, maintenance, development and expansion into a world-class facility under an agreement dated April 4, 2006.

In the information memorandum that was issued to the prospective bidders it was stated that the airport premises will be included in the transaction, including encroached land but excluding the following areas : (i) New ATC tower; (ii) AAI staff colony; (iii) Hotel Leela Venture, and (iv) All retail fuel outlets outside the airport’s operational boundary.

However, there was a dispute over the 31,000 sq metre stretch between AAI and the hotel company and subsequently the Bombay High Court had passed an interim order. According to MIAL, this land was required for modernisation. Therefore, it had moved the high court for intervention in the suit, but the court had turned it down. The Supreme Court today also dismissed their appeal.