AIRCRAFT MANUAL (INDIA) VOLUME II (2003)

NATIONAL CONVENTIONS

TABLE OF CONTENTS

CHAPTER

PAGE

I The Air Corporations Act, 1953 (27 of 1953) .

II The Air Corporations (Transfer of Undertakings and Repeal) Ordinance, 1994 (4 of 1994)

III The Air Corporations (Transfer of Undertakings and Repeal) Act, 1994 (13 of 1994) .

IV The International Airports Authority of India Act, 1971 (43 of 1971)

V The National Airports Authority of India, 1985 (64 of 1985)

VI The Airports Authority of India Act, 1994 (55 of 1994)

VII The Carriage by Air Act, 1972 (69 of 1972)

100

VIII The Tokyo Convention Act, 1975 (20 of 1975)

120

IX The Anti-Hijacking Act, 1982 (65 of 1982)

128

X The Suppression of Unlawful Acts Against Safety of Civil Aviation Act, 1982 (66 of 1982)

135

XI Notification regarding application of the Carriage by Air Act, 1972,

to carriage by air which is not international

142

THE AIR CORPORATIONS ACT, 1953

CHAP. I

CHAPTER I

THE AIR CORPORATIONS ACT,

1953

TABLE OF CONTENTS

CHAPTER I

PRELIMINARY

SECTIONS

PAGES

Short title and commencement.

Definitions

CHAPTER II

CONSTITUTION AND AND FUNCTIONS OF THE CORPORATIONS

Incorporation of the Corporations

Constitution of the Corporations

Conditions of Service of Directors

Vacancy in Corporation not to invalidate proceedings

Functions of the Corporations .

Appointment of officers and other employees of the Corporations

Corporations to act on Business Principles

CHAPTER III

FINANCE, ACCOUNTS AND AUDIT

10.

Capital of the Corporations

11.

Vesting of Properties in the Corporations

12.

Funds of the Corporations

13.

Powers of the Corporations in regard to expenditure

14.

Corporations to assume obligations of Central Government

in respect of certain matters

15.

Accounts and Audit

15A.

Audit of Accounts of Companies formed by Corporations

CHAPTER IV

ACQUISITION OF UNDERTAKINGS OF EXISTING AIR COMPANIES

16.

Undertakings of existing Air Companies to vest in the Corporations

17.

General effect of vesting of undertakings in the Corporations

18.

Reservation of Scheduled Air Transport Services to the Corporations

19.

Licences to cease to be valid

20.

Provisions respecting Officers and Employees of existing Air Companies

CHAP. I

THE AIR CORPORATIONS ACT, 1953

SECTIONS

PAGES

21.

Duty to deliver up possession of property acquired and

documents relating thereto

22.

Duty of existing Air Companies to supply particulars

23.

Right of Corporations to disclaim certain agreements

24.

Transactions resulting in dissipation of assets

25.

Compensation to be given for compulsory acquisition of undertaking

26.

Constitution of Special Tribunal to determine Compensation

27.

Mode of giving compensation .

28.

Winding up of existing company whose undertaking has been acquired

29.

Authorisation under section 28 may contain certain directions

CHAPTERV

AIR TRANSPORT COUNCIL

30.

Constitution of Air Transport Council

31.

Functions of the Air Transport Council

32.

Staff of the Council

33.

Proceedings of the Council

CHAPTER VI

CONTROL OF CENTRAL GOVERNMENT

34.

Power of Central Government to give directions

35.

Prior approval of Central Government necessary in certain cases

36.

Submission of Programme of Work for each year

37.

Submission of Annual Reports to Parliament

CHAPTER VII

MISCELLANEOUS

38.

Corporations to act in mutual consultation

39.

Transfer of scheduled air transport services or assets from one Corporation to the other

40.

Corporations may delegate their powers

41.

Advisory and Labour Relations Committees

42.

Meetings of the Corporations

43.

Penalty for wrongful withholding of property

44.

Power to make rules

45.

Power of Corporations to make regulations .

THE SCHEDULE

THE AIR CORPORATIONS ACT, 1953

CHAP. I

CHAPTER I

THE AIR CORPORATIONS ACT,

1953

(27 OF 1953)

An Act to provide for the establishment of

1963).- Goa is now a State - See Goa, Daman

Air Corporations, to facilitate the acquisition

and Diu Reorganisation Act (18 of 1987),

by the Air Corporations of undertakings

S.3(30-5-1987).

belonging to certain existing Air companies

2. Definitions.- In this Act, unless the

and generally to make further and better

context otherwise requires -

provisions for the operations of air transport

services.

(i)

“aircraft” means any machine which can

derive support in the atmosphere from

Be it enacted by Parliament as follows:-

reactions of the air and includes balloons,

(a) For the Statement of Object and Reasons,

whether fixed or free, airships, kites,

see Gazette of India, 21-3-1953, Pt. II, S.2

gliders and flying machines;

Extra, page 148

(ii)

“air transport service” means a service

CHAPTER I

for the transport by air of persons, mails

or any other thing, animate or inanimate,

PRELIMINARY

for any kind of remuneration whatsoever,

1. Short title and commencement.- (1)

whether such service consists of a single

The Act may be called The Air Corporations

flight or a series of flights;

Act, 1953.

(iii)

“associate” in relation to either of the

(2) It shall come into force on such date as

corporations means any subsidiary of

the Central Government may, by notification^a

the corporation or any person with whom

in the Official Gazette, appoint.

the corporation has made an agreement

in accordance with clause(h) of sub-

(a) The Act came into force on 28-5-1953, see S.R.O.968A,

Gaz. of Ind., 28-5-1953, Pt.II, S.3 Extra p.1762.

section (2) of section 7;

The Act has been extended to Union

(iv)

"Corporations" means "Indian Airlines"

Territories of Goa, Daman and Diu by the Goa,

and "Air India International" establish-

Daman and Diu (Laws) Regulation, 1962 (12 of

ed under section 3, and “Corporation”

1962), (w.e.f.1-2-1965), to Dadra and Nagar

means either of the Corporations;

Haveli by the Dadra and Nagar Haveli (Laws)

(v) the expression “existing air companies”

Regulation, 1963 (6 of 1963), (w.e.f. 1-7-1965);

means the Air India Ltd., the Air Services

and to Pondicherry by the Pondicherry (Laws)

of India Ltd., the Airways (India) Ltd.,

Regulation, 1963(7 of 1963), (w.e.f. 1-10-

the Bharat Airways Ltd., the Deccan

Airways Ltd., the Himalayan Aviation

CHAP. I

THE AIR CORPORATIONS ACT, 1953

Ltd., the Indian National Airways Ltd.,

as per S.7(I) of the Air Corporations (Amendment)

Act, 1962 (17 of 1962), S.7(2) of the Amendment Act

the Kalinga Airlines and the Air India

(17 of 1962) provides as under :-

International Ltd. and “existing air

company” means any of the existing air

“(2) The change of name of “Air India

companies;

International” by sub-section (1)

shall not affect any rights and

(vi) “prescribe” means prescribed by rules

obligations of that Corporation or

made under this Act;

render defective any legal

(vii) “regulations” means regulations made

proceeding by or against it, and any

by either of the Corporations under

legal proceedings which might have

section 45;

been continued or commenced by

or against that Corporation by its

(viii) “Scheduled air transport service” means

former name may be continued or

an air transport service under-taken

commenced by or against it, by its

between the same two or more places

new name.”

and operated according to a published

time table or with flights so regular or

4. Constitution of the Corporation.-

frequent that they constitute a

^a[(1) The general superintendence, direction

recognisably systematic series, each

and management of the affairs and business of

flight being open to use by members of

each of the Corporations shall vest in a Board

public;

of directors which may exercise all such powers

and do all such acts and things as may be

(ix) “Tribunal” means the Tribunal

exercised or done by the Corporation under

constituted under section 25.

this Act.

CHAPTER II

(1-A) The Board of directors shall consist

CONSTITUTION AND FUNCTIONS

of a Chairman to be appointed by the Central

OF THE CORPORATIONS

Government, and not less than eight and not

more than fourteen other directors to be

3. Incorporation of the Corporations-

appointed by the Central Government and the

(1) With effect from such date as the Central

Chairman or any other director may be required

Government may, by notification^a in the Official

to render whole time or part-time service as the

Gazette, appoint, there shall be established two

Central Government may direct.

Corporations to be known as “Indian Airlines”

and “Air India International”^b.

Provided that -

(2) Each of the Corporations aforesaid shall

(a) that same person may be appointed to be

be a body corporate having perpetual succession

the Chairman of both the Corporations

and a common seal with power, subject to the

or Chairman of one and director of the

provisions of this Act, to acquire and hold

other;

property, and may by its name sue and be sued.

(b) the same persons may be appointed to be

(a) The date appointed is 15-6-1953: see S.R.O. 1125-

directors of both the Corporations.]

Gaz. of Ind. 12-6-1953,Pt. II.S.3, Ext, p.1935.

(2) Before appointing a person to be a

(b) Re-named as ‘Air India’ w.e.f. 8-6-1962, see S.O.

^b[director] of either of the Corporations, the

1676, Gaz. of Ind., 23-5-1962, Pt. II, S.3(ii), p.2019,

Central Government shall satisfy itself that

person will have no such financial or other

THE AIR CORPORATIONS ACT, 1953

CHAP. I

interest as is likely to affect prejudicially the

(5), substitued, Ibid.

exercise or performance by him of his functions

5. Conditions of service of members.-

as a ^b[director] of the Corporation and the

(1) The Chairman and other ^a[directors] of each

Central Government shall also, satisfy itself

of the Corporations shall ordinarily be entitled

from time to time with respect to every

to hold office for the period specified in the

^b[director] of the Corporation that he has no

order of appointment, unless the appointment

such interest; and any person who is, or whom

is terminated earlier by the Central Government.

the Central Government proposes to appoint

Provided that any ^a[director] may at any

and who had consented to be a ^b[director] of the

time by notice in writing addressed to the Central

Corporation shall, whenever required by the

Government resign his office.

Central Government so to do, furnish to it such

information as the Central Government

(2) Subject to the previous approval of the

considers necessary for the performance of its

Central Government, each of the Corporations

duties under this sub-section.

shall pay to every ^a[director] thereof in respect

of his office as such, ^b[such remuneration by

(3) A ^b[director] of either of the

way of salary, allowances,] fees or otherwise as

Corporations who is in anyway directly or

may be determined by the Corporation and to

indirectly interested in a contract made or

the Chairman in respect of his office as such,

proposed to be made by the Corporation, or in

such remuneration, whether in addition to the

any contract made or proposed to be made by an

remuneration to which he may be entitled in

associate of the Corporation which is brought

respect of his office as a ^a[directors] or

up for consideration by the Corporation, shall,

otherwise, as it may similarly determine.

as soon as possible after the relevant

circumstances have come to his knowledge

(a) Word “members” in sub-section (1) and word

disclose the nature of his interest at a meeting

“member” in the proviso to sub-section (1) and sub-

section

(2), substituted by Air Corporations

of the Corporation; and the disclosure shall be

(Amendment) Act (49 of 1971),S.3(1-2-1972).

recorded in the minutes of the Corporation and

(b) Substituted for words “such remuneration by way of

the^b[director] shall not take any part after the

allowances”, ibid,S.3(ii)(b) (1-2-1972).

disclosure in any deliberation or decision of

the Corporation with respect to that contract.

6. Vacancy in Corporation not to

invalidate proceedings.- No act or

(4) During the temporary absence of the

proceeding of either of the Corporations shall

Chairman of either of the Corporations, the

be deemed to be invalid by reason merely of any

Central Government may appoint another

vacancy in, or any defect in the Constitution of,

person, whether a ^b[director] of the Corporation

the Corporation.

or not, to act as the Chairman.

7. Functions of the Corporation.- (1)

(5) Save as otherwise provided in this section,

Subject to the rules, if any, made by the Central

nothing contained in this Act shall be deemed to

Government in this behalf, it shall be the

disqualify the^b[managing director] of either of

function of each of the Corporations to provide

the Corporations from being appointed to be a

safe, efficient, adequate, economical and

^b[director] thereof.

properly co-ordinated air transport services,

(a) Original sub-section (1) substituted by the Air

whether internal or international or both, and

Corporations (Amendment) Act (49 of 1971), S.2 (1-2-

the Corporations shall so exercise their powers

1972).

(b) Word “member” in sub-sections (2), (3), (4) and (5)

and the words “ General Manager” in sub-section

CHAP. I

THE AIR CORPORATIONS

ACT, 1953

as to secure that the air transport services are

contractor in relation to an air transport

developed to the best advantage and, in particular,

service operated by any other person;

so exercise those powers as to secure that the

(h)

with the previous approval of the Central

services are provided at reasonable charges.

Government, to enter into agreements

(2) Without prejudice to the generality of

with any person engaged in air

the powers conferred by sub-section (1), each

transportation with a view to enabling

of the Corporations shall, in particular, have

such person to provide air transport

power-

services on behalf of or in association

with the Corporation;

(a)

to operate any air transport service, or

any flight by aircraft for a commercial

(i)

with the previous approval of the Central

or other purpose, and to carry out all

Government, to determine and levy fares

forms of aerial work;

and freight rates and other charges for or

in respect of the carriage of passengers

(b)

to provide for the instruction and training

and goods on air transport services

in matters connected with aircraft or

operated by it;

flight by aircraft of persons employed,

or desirous of being employed, either by

^a[[ii]

to make such grants as it thinks fit as

the Corporation or by any other person;

contribution or donation, in furtherance

of the interests of the Corporation, to

(c)

with the previous approval of the Central

any fund established for a benevolent or

Government, to promote any

charitable purpose:

organisation outside India for the purpose

of engaging in any activity of a kind

Provided that nothing in this clause

which the Corporation has power to carry

shall be construed as empowering

on;

the Corporation to make any such

grant to any political party or for

(d)

to acquire, hold or dispose of any

any political purpose to any

property, whether movable or

individual or body;]

immovable, or any air transport

undertaking;

(j)

to take such steps as are calculated to

extend the air transport services provided

(e)

to repair, overhaul, reconstruct,

by the Corporation, whether within or

assemble or recondition aircraft, vehicles

without India, including the development

or other machines and parts, accessories

of feeder services and the improvement

and instruments thereof or therefore and

of the types of aircraft used in air

also to manufacture such parts, accesso-

transport services;

ries and instruments, whether the aircraft,

vehicles or other machines are owned by

(k)

to take such steps as are calculated to

the Corporation or by any other person;

promote the interests of the Corporation

or to improve the services the

(f)

to enter into and perform all such

Corporation may provide, ^b[including

contracts as are calculated to further the

provision of catering, hotels, restaurants,

efficient performance of its duties and

rest rooms,] goods-shed, ware-houses

the exercise of its powers under this

and transport by land or water in

Act;

connection with any air transport service

(g)

to perform any functions as agent or

or any other amenity or facility;

THE AIR CORPORATIONS ACT, 1953

CHAP. I

[(kk) to form one or more companies under

consultation with the Chairman in such rules

the Companies Act, 1956 to further the

shall be subject to the approval of the Central

efficient performance of its duties and

Government.

the exercise of its powers under this

(2) Subject to the provisions of section 20,

Act:

every person employed by each of the

Provided that the paid up share

Corporations shall be subject to such conditions

capital of every company so formed

of service and shall be entitled to such

shall be held exclusively by the

remuneration and privileges as may be

Corporation;]

determined by regulations made by the

Corporation by which he is employed.

(l) to take all such steps as may be necessary

or convenient for , or may be incidental

(3) Neither the ^a[managing director] nor

to , the exercise of any power, or the

such other employee of either of the

discharge of any function or duty

Corporations as may be specified in this behalf

conferred or imposed on it by this Act.

by the Central Government shall, during his

service in the Corporation, be employed in any

(3) Nothing contained in this section shall

capacity whatsoever or directly or indirectly

be construed as -

have any interest in any air transport undertaking

(a) authorising the disregard by the

other than an undertaking of either of the

Corporation of any law for the time being

Corporations, or in any other undertaking which

in force, or

is interested in any contract with either of the

Corporations.

(b) authorising any person to institute any

proceeding in respect of a duty or liability

(a) Substituted for the words ‘General Manager’ by the

Air Corporation (Amendment) Act (49 of 1971), S.5

to which either of Corporations or its

(1-2-1972).

employees would not otherwise be

subject.

9. Corporations to act on business

principles.- In carrying out any of duties

(a) Clause (ii) inserted by the Air Corporations

vested in it by this Act, each of the Corporations

(Amendment) Act (49 of 1971), S.4(1-2-1972).

shall act so far as may be on business principles.

(b) Words “including provision of catering, rest rooms”

in cl.(k) substituted, ibid.

CHAPTER III

FINANCE, ACCOUNTS AND AUDIT

8. Appointment of officers and other

10. Capital of the Corporations.- (1) All

employees of the Corporation.- (1) For the

non - recurring expenditure incurred by the

purpose of enabling it efficiently to discharge

Central Government for, or in connection with,

its functions under this Act, each of the

each of the Corporations up to the date of

Corporations shall appoint a ^a[managing

establishment of that Corporation and declared

director] and, subject to such rules as may be

to be capital expenditure by that Government,

prescribed in this behalf, may also appoint such

shall be treated as capital provided by the Central

number of other officers and employees as it

Government to that Corporation.

may think necessary:

(2) The Central Government may provide any

Provided that the appointment of the ^a[

further capital that may be required by either of

managing director] and such other categories

Corporations for the carrying on the business of

of officers as may be specified after

the Corporation or for any purpose connected

CHAP. I

THE AIR CORPORATIONS ACT, 1953

therewith on such terms and conditions as the

shall have power, subject to the provisions of

Central Government may determine.

this Act, to spend such sums as it thinks fit on

objects or for purposes authorised by this Act and

(3) Each of Corporations may, with the

such sum shall be treated as expenditure out of the

consent of the Central Government, or in

funds of that Corporation.

accordance with the terms of any general

authority given to it by the Central Government-

14. Corporations to assume obligations of

Central Government in respect of certain

(a) borrow money for all or any of the

matters.- (1) All obligations incurred, all

purposes of the Corporation, and

contracts entered into and all matters and things

(b) secure the payment of money borrowed

engaged to be done by, with, or for the Central

by it or any interest thereon by the issue

Government for any of the purposes of this Act

of bonds, debentures, debenture-stock

before the establishment of either of the

or any mortgage or charge or other secur-

Corporations shall be deemed to have been

ity on the undertaking of the Corporation

incurred, entered into or engaged to be done by,

or any part of it or on any of its properties.

with or for Indian Airlines or, as the case may be,

Air India International according as the obligations

11. Vesting of properties in the

contracts, matters and things relate to the purposes

Corporation.- All properties, assets and funds

of the former Corporation or the latter.

owned or acquired by the Central Government for

the purpose of Indian Airlines or, as the case may

15. Accounts and audit.-

(1) The

be, Air India International before the establishment

Corporations shall maintain proper accounts and

of those Corporations shall, on such establishment,

other relevant records and prepare annual

vest in the Corporation concerned.

statement of accounts including the profit and

loss account and the balance sheet in such form as

12. Funds of the Corporation.- (1) Each

may be prescribed by the Central Government in

of the Corporations shall have its own funds and

consultation with the Comptroller and Auditor

all receipts of the Corporations shall be carried

General of India.

thereto and all payments for the Corporations

shall be made therefrom.

(2) The accounts of the Corporations shall be

audited annually be the Comptroller and Auditor

(2) Each of the Corporations may keep in

General of India and any expenditure incurred by

^a[account] with any scheduled bank as defined

him in connection with such audit shall be payable

in section 2 of the Reserve Bank of India, Act,

by the Corporations to the Comptroller and

1934 or in any other bank approved by the

Auditor General of India.

Central Government in this behalf a sum of

money not exceeding such amount as may be

(3) The Comptroller and Auditor General of

prescribed, but any moneys in excess of the

India and any person appointed by him in connection

said sum shall be deposited in the Reserve Bank

with the audit of the accounts of the Corporations

of India or with the agents of the Reserve Bank

shall have the same rights and privileges and

of India or invested in such manner as may be

authority in connection with such audit as the

approved by the Central Government.

Comptroller and Auditor-General has in

connection with the audit of Government accounts

(a) Substituted for the words “current account” by the Air

Corporations (Amendment) Act (49 of 1971), Section

and in particular, shall have the right to demand the

6 (1-2-1972).

production of books, accounts, connected

vouchers and other documents and papers and to

13. Powers of the Corporations in regard

inspect any of the officers of the corporations.

to expenditure.- Each of the Corporations

THE AIR CORPORATIONS ACT, 1953

CHAP. I

(4) The accounts of the Corporations as

the annual general meeting of the

certified by the Comptroller and Auditor General

company at the same time and in the

of India or any other person appointed by him in

same manner as the audit report.]

this behalf together with the audit report thereon

(a) Inserted by the Air Corporation (Amendment) Act (49

shall be forwarded annually to the Central

of 1971), S.7(1-2-1972).

Government and the Government shall cause the

CHAPTER IV

same to be laid before both Houses of Parliament.

ACQUISITION OF

^a[15A. Audit of accounts of companies

UNDERTAKINGS OF EXISTING

formed by Corporations.

(1)

AIR COMPANIES

Notwithstanding anything contained in the

16. Undertakings of existing

air

Companies Act, 1956, the auditor of any

companies to vest in the Corporations.-

company formed by either of the Corporations

On such date as the Central Government may,

under clause (kk) of sub-section (2) of section

by notification ^ain the Official Gazette, appoint

7 shall be appointed or re-appointed by the

(hereinafter referred to as “the appointed date”),

Corporation concerned on the advice of the

there shall be transferred to and vest in -

Comptroller and Auditor General of India.

(a) Indian Airlines, the undertaking of all

(2) Save as otherwise provided in sub-

the existing air companies (other than

section (1), in addition to the provisions

Air India International Ltd.), and

contained in the Companies Act, 1956, relating

to the audit of the accounts of any company, the

(b) Air India International, the undertaking

following provisions shall apply to the audit of

of the Air India International Ltd.

the accounts of any company referred to in sub-

(a) The day appointed is 1-8-1953; see S.R.O. 1262 in

section (1), namely:-

Gaz. Ind., 1953, Pt. II, S.3, page 931.

(i) the Comptroller and Auditor General of

17. General effect of vesting of

India shall have power to conduct a

undertakings in the Corporations.- (1) The

supplementary or test audit of the

undertaking of each of the existing air

company’s accounts by such person or

companies which is transferred to and which

persons as he may authorise in this

vests in either of the Corporations under Section

behalf: and for the purposes so authorised,

16 shall, subject to the provisions of section

on such matters by such person or persons

22, be deemed to include all assets, rights,

and in such form as the Comptroller and

powers, authorities and privileges and all

Auditor General may, by general or

property, movable and immovable, including

special order, direct;

lands, works, workshops, aircraft, cash balances,

(ii) the author appointed or re-appointed

reserve funds, investment and book debts and

under sub-section (1) shall submit a copy

all other rights and interests arising out of such

of his audit report to the Comptroller

property as were immediately before the

and Auditor General of India who shall

appointed date in the ownership, possession or

have the right to comment upon, or

power of the existing air company in relation to

supplement, the audit report in such

the undertaking, whether within or without India,

manner as he may think fit;

and all books of account and documents relating

thereto, and subject to the provisions contained

(iii) any such comments upon, or supplement

in Section 22, shall also be deemed to include

to, the audit report shall be placed before

CHAP. I

THE AIR CORPORATIONS ACT, 1953

all borrowings, liabilities and obligations of

their associates to operate any scheduled air

whatever kind then subsisting of the existing air

transport service from to, in or across India:

company in relation to the undertaking.

Provided that nothing in this section shall

(2) Any lands works, aircraft, assets or other

restrict the right of any person,-

property vesting in the Corporation under sub-

(a)

for the purpose of any air transport

section (1) shall by force of such vesting be

undertaking of which the principal place

freed and discharged from all trusts, obligations,

of business is in any country outside

mortgages, charges, liens and other

India, to operate an air transport service

encumbrances affecting it, and any attachment,

in accordance with the terms of any

injunction or any other order of a Court

agreement for the time being in force

restricting the use of such property in any manner

between the Government of India and

shall be deemed to have been withdrawn.

the Government of that country; or

(3) Subject to the other provisions contained

(b)

to carry passengers for the sole purpose

in this Act all contracts and working

of instructing them in flying or on duties

arrangements which are subsisting immediately

of air-crews; or

before the appointed date and affecting any of

the existing air companies shall, in so far as

(c)

to carry passengers or goods for the

they relate to the undertaking of that company,

sole purpose of providing an air

cease to have effect or be enforceable against

ambulance service or a rescue or relief

that company or any person who was surety or

service during any natural calamity; or

had guaranteed the performance thereof, and

(d)

to carry passengers or goods for the

shall be of as full force and effect against or in

sole purpose of providing joy rides

favour of the Corporation in which the

consisting of flights operated from and

undertaking has vested by virtue of this Act and

to the same aerodrome or place without

enforceable as fully and effectually as if, instead

any intermediate landing or for the

of the company, the Corporation had been

purpose of aerial survey, fire fighting,

named therein or had been a party thereto.

crop-dusting, locust control or any other

(4) Subject to the other provisions contained

aerial work of a similar nature; ^a[or

in this Act, any proceeding or cause of action

(e)

to operate, with the previous permission

pending or existing immediately before the

of the Central Government for such

appointed date by or against any of the existing

period and subject to such terms and

air companies in relation to its undertaking may

conditions as that Government may

as from that date be continued and enforced by

determine, any scheduled air transport

or against the Corporation in which it has vested

service as aforesaid which is not provided

by virtue of this Act as it might have been

by either of the Corporations or their

enforced by or against that company if this Act

associates.]

had not been passed, and shall cease to be

enforceable by or against that company, its

(2) Any person who operates a scheduled air

surety or guarantor.

transport service in contravention of the

provisions of this section shall be liable in

18. Reservation of scheduled air trans-

respect of each offence to a fine which may

port services to the Corporations.-

(1)

extend to one thousand rupees, or to

After the appointed date, it shall not be lawful

imprisonment which may extend to three

for any person other than the Corporations or

months, or to both.

THE AIR CORPORATIONS ACT, 1953

CHAP. I

Explanation.- The operation of each flight

may be fixed^aby the Central Government by

shall constitute a separate offence for the

notification in the Official Gazette, intimated

purposes of this section.

his intention of not becoming an officer or

other employee of the Corporation.

(a) Inserted by the Air Corporations (Amendment) Act,

1962 (17 of 1962), S.2 (30-3-1962).

(2) Notwithstanding anything contained in

19. Licences to cease to be valid.- With

sub-section (1), the Central Government may

effect from the appointed date, all licences

direct either of the Corporations in which the

granted under the Indian Aircraft Act, 1934 (22

undertaking of any existing air company has

of 1934) or under the rules made thereunder

vested to take into its employment any officer

for the operation of scheduled air transport

or other employee who was employed by the

services shall cease to be valid.

existing air company prior to the first day of

July, 1952, and who has been discharged from

20. Provisions respecting officers and

service in the company on or after the said date

employees of existing air companies.- (1)

for reasons which, in the opinion of the Central

Every officer or other employee of an existing

Government appear to be inadequate for the

air company (except a director, managing agent,

purpose, and where the Central Government

manager or any other person entitled to manage

issues any such direction, the provisions of

the whole or a substantial part of the business

sub-section (1) shall apply to such officer or

and affairs of the company under a special

other employee as they apply to any officer or

agreement, employed by that company prior to

other employee referred to therein.

the first day of July, 1952, and still in its

employment immediately before the appointed

(3) As from the appointed date the trustees

date shall, in so far as such officer or other

of the provident funds and pension funds or

employee is employed in connection with the

pension schemes

of each of existing air

undertaking which has vested in either of the

companies shall transfer to the Corporation

Corporations by virtue of this Act, become as

concerned the balances lying to the credit of

from the appointed date an officer or other

each of the employees whose services have

employee, as the case may be, of the Corporation

been transferred to that Corporation by virtue

in which the undertaking has vested and shall

of this Act and also all other balances of the

hold his office or service therein by the same

funds or schemes as shall remain after satisfying

tenures, at the same remuneration and upon the

all demands and liabilities, and thereupon the

same terms and conditions and with the same

trustees shall be discharged of the trusts by

rights and privileges as to pension and gratuity

virtue of this Act.

and other matters as he would have held the

(4) Notwithstanding anything contained in

same under the existing air company if its

this Act or in the Indian Companies Act, 1913

undertaking had not vested in the Corporation

or in any other law for the time being in force or

and shall continue to do so unless and until his

in any agreement entered into by an existing air

employment in the Corporation is terminated

company or in the articles of association of any

or until his remuneration, terms or conditions

such company, no director, managing agent,

are duly altered by the Corporation:

manager or any other person entitled to manage

Provided that nothing contained in this

the whole or a substantial part of the business

section shall apply to any officer or other

and affairs of the company shall be entitled to

employee who has, by notice in writing given to

any compensation against any existing air

the Corporation concerned prior to such date as

company or against either of the Corporations

CHAP. I

THE AIR CORPORATIONS ACT, 1953

for the loss of office or for the premature

(3) Without prejudice to the other provisions

termination of any contract of management

contained in the section, it shall be lawful for

entered into by him with any existing air company

the Corporation and the Central Government to

and where any existing air company has, after

take all necessary steps for securing possession

the first day of July, 1952 , and before the

of all properties which have vested in the

commencement of this Act, paid to any such

Corporation under section 16.

person as is referred to in this sub-section any

22. Duty of existing air companies to

sum by way of compensation to which the person

supply particulars - (1) Where the

receiving such compensation would not have

undertaking of an existing air company vests in

been entitled if this sub-section were in force

either of the Corporations under this Act, the

at the time of such payment, the existing air

existing air company shall within thirty days

company shall be entitled to claim refund of

from the appointed date of within such further

any sum so paid.

time as the Corporation concerned may allow

(a)

10th of July 1953 was fixed as the date prior to

in any case, supply to the Corporation particulars

which the notice referred to in the Proviso might

of book debts and investments belonging to and

be given: see S.R.O. 1170 in Gaz. Ind.,

1953,

all liabilities and obligations of the company

Pt. II-S.3,p.882.

subsisting immediately before any appointed

21. Duty to deliver up possession of

date, and also of all agreements entered into by

property acquired and documents relating

the existing air company and in force on the

thereto.- (1) Where any property has vested

appointed date, including agreements, whether

in either of the Corporations under section 16,

express or implied, relating to leave, pension,

every person in whose possession or custody

gratuity and other terms of service of any officer

or under whose control the property may be,

or other employees of the existing air company,

shall deliver up the property to the Corporation

under which by virtue of this Act the

concerned forthwith.

Corporations have or will or may have liabilities

(2) Any person who on the appointed date

except such agreements as the Corporation

has in his possession or under his control any

may exclude either generally or in any particular

books, documents or papers relating to any

case from the operation of this sub-section.

undertaking which has vested in either of the

(2) If any existing air company fails to supply

Corporations under this Act and which belong

to the Corporation concerned particulars of

to an existing air company or would have so

such book debts, liabilities and agreements

belonged if its undertaking had not so vested

within the time allowed to it for the purpose

shall be liable to account for the said books,

under sub-section (1), nothing contained in this

documents and papers to the Corporation in

Act shall have effect so as to transfer any such

which the undertaking has vested and shall deliver

book debts, liabilities and agreements to, or to

them up to the Corporation or to such person as

vest the same in, the Corporation.

the Corporation may direct:

(3) Either Corporation may be notice in

Provided that the Corporation shall produce

writing within a period of ^a[six months] after

for inspection by such companies or their

submission of the particulars referred to in

authorized representatives the books of account

sub-section (1) intimate to the existing air

and documents as relate to the affairs of the

company submitting the particulars that such of

company for any period prior to the appointed

the book debts and investments as are specified

date.

THE AIR CORPORATIONS ACT, 1953

CHAP. I

in the notice are not included in the properties

consideration or for an inadequate

vesting in the Corporation whereupon the

consideration;

compensation provided by section 25 of this

(b) sold or disposed of any of its properties

Act and the Schedule thereto shall be reduced

or right without consideration or for an

by the amount of such excluded book debts and

inadequate consideration;

investments but the right of such existing air

company to recover and retain such excluded

book debts shall remain unaffected by this Act.

excessive consideration;

[a] Substituted for the words “ninety days” by the Air

(d) entered into or varied any agreement so

Corporations (Amendment) Act, 1954 (10 of 1954), S.

as to require an excessive consideration

2 (w.r.e.f. 30-1-1954)

to be paid or given by the company;

23. Right of Corporations to disclaim

(e) entered into any other transaction of

certain agreements- (1) Where it appears to

such an onerous nature as to cause a loss

either of the Corporations that the making of

to or impose a liability on the company

any such agreements as is referred to in section

exceeding any benefit accruing to the

22 under which the Corporation has or will have

company; or

or may have liabilities was not reasonably

necessary for the purposes of the activities of

(f) sold or otherwise transferred any aircraft,

the existing air company or has not been entered

equipment, machinery or other property

into in good faith, the Corporation may, within

of book value exceeding rupees ten

^a[one year] from the appointed date, apply to the

thousand;

Tribunal for relief from such agreement, and

and the payment, sale, disposal, acquisition

the Tribunal, if satisfied after making such

agreement or variation there of, or other

inquiry into the matter as it thinks fit that the

transaction or transfer was not reasonably

agreement was not reasonably necessary for

necessary for the purposes of the company or

the purposes of the activities of the existing air

was made with an unreasonable lack of prudence

company or has not been entered into in good

on the part of the company regard being had in

faith, may make an order cancelling or varying

either case to the circumstances at the time.

the agreement on such terms as it may think fit

to impose and the agreement shall thereupon

(2) Either of the Corporations may, in the

have effect accordingly.

case of any such existing air company as is

referred to in sub-section (1) the undertaking

(2) All the parties to the agreement which is

of which was vested in the Corporation under

sought to be cancelled or varied under this

this Act, at any time within ^a[one year] from the

section shall be made parties to the proceeding.

appointed date, apply for relief to the Tribunal

[a] Substituted for the words” six months” by the Air

in respect of any transaction to which in the

Corporations (Amendment) Act, 1954 (10 of 1954) S.

opinion of the Corporation this section applies,

4 (w.r.e.f. 30-1-1954).

and all parties to the transaction shall, unless

24. Transactions resulting in dissipation

the Tribunal otherwise directs, be made parties

of assets- (1) This section shall apply where

to the application.

any existing air company has, after the first day

(3) Where the Tribunal is satisfied that a

of July, 1952 and before the appointed date,-

transaction in respect of which an application is

(a) made any payment to any person without

CHAP. I

THE AIR CORPORATIONS ACT, 1953

made is a transaction to which this section

shall be determined by the Corporation and if

applies, then, unless the Tribunal is also satisfied

the amount so determined is approved by the

that the transaction was a proper transaction

Central Government, it shall be offered to the

made in the ordinary course of business regard

existing air company in full satisfaction of the

being had to the circumstances at the time and

compensation payable under this Act, and if the

was not in any way connected with any provision

amount so offered is not acceptable to the

made by this Act or with any anticipation of the

existing air company, it may within such time as

making of any such provision, the Tribunal shall

may be prescribed for the purpose have the

make much order against any of the parties to

matter referred to a Tribunal constituted for

the application as the Tribunal thinks just having

this purpose by the Central Government for

regard to the extent to which those parties

decision.

where respectively responsible for the

26. Constitution of special Tribunal to

transaction of benefited from it and all the

determine compensation.- (1) The Tribunal

circumstances of the case.

to be constituted under section 25 shall consist

(4) Where an application is made to the

of three members appointed by the Central

Tribunal under this section in respect of any

government, one of whom shall be a person who

transaction and the application is determined in

is or has been a Judge of a High Court or has

favour of the Corporation the Tribunal shall

been a Judge of the Supreme Court.

have exclusive jurisdiction to determine any

(2) The Tribunal may for the purpose of

claims outstanding in respect of the transaction.

deciding any matter under this Act choose one

[a] Substituted for the words “six months” by the Air

or more persons possessing special knowledge

Corporations (Amendment) Act, 1954 (10 of 1954.) S.

of any matter relating to the case under inquiry

4 (w.r.e.f. 30-1-1954).

to assist it in determining any compensation

25. Compensation to be given compulsory

which is to be given under this Act.

acquisition of undertaking- (1) Where the

(3) The Tribunal shall have the powers of a

undertaking of any of the existing air companies

civil court while trying a suit under the Code of

has vested in either of the Corporations under

Civil Procedure, 1908 in respect of the

this Act, compensation shall be given by the

following matters:

Corporation to that company in the manner

specified in section 27 and the amount of such

(a) summoning and enforcing the attendance

compensation shall be determined in accordance

of any person and examining him on

with the principles specified in the Schedule to

oath;

this Act.

(b) requiring the discovery and production

(2) Not with standing that separate valuations

of documents;

are calculated under the principles specified in

the Schedule in respect of the several matters

referred to therein, the amount of compensation

(d) issuing commissions for the examination

to be given shall be deemed to be a single

of witnesses or documents.

compensation to be given for the undertaking as

(4) The Tribunal shall by a majority of its

a whole.

number regulate its own procedure and decide

(3) The amount of the compensation to be

any matter within its competence and may review

given in accordance with the aforesaid principles

its decision in the event of there being a mistake

THE AIR CORPORATIONS ACT, 1953

CHAP. I

on the face of the record or correct any

(4) If within the expiry of the said period of

arithmetical or clerical error therein but subject

one hundred and eighty days, the holder of any

there to the decision of the Tribunal on any

bond fails to require payment of its face value

matter within its jurisdiction shall be final and

from the Corporation concerned, the bond shall

shall not be called in question in any court.

cease to the redeemable at the option of the

holder:

27. Mode of giving compensation- (1)

When the amount of compensation to be given

Provided that in any case the Corporation

under this Act to an existing air company has

may by notice require the holder of the bond to

been determined under section 25, the

accept its face value in cash at any time whether

Corporation shall give to the company one or

before of after the expiry of the period of five

more bonds of the face value of the amount of

years aforementioned.

compensation so determined less such portion

(5) The holder of the bond shall be entitled

there of as is payable in cash under this section.

to receive from the Corporation interest on the

(2) Out of the compensation to be given to

bond at three-and-a-half per cent per annum at

each of the existing air companies under this

such intervals as may be prescribed, with effect

Act, there shall be paid in cash-

from the appointed date and until the bond is

duly redeemed.

(a) ten per cent. of the amount of

compensation payable to each of such

(6) Bonds issued under this section shall,

companies (Which percentage shall be

for the purpose of redemption and of computing

uniformly applicable to all existing air

interest, be deemed to have been issued on the

companies); or

appointed date.

(b) the amount borrowed by any such

[7] Any bond issued under the provisions of

company from any bank and outstanding

this section shall be deemed to be a security in

on the 31st day of December, 1952 or

which a trustee may invest trust monies within

on the appointed date, whichever amount

the meaning of section 20 of the Indian Trusts

is less; or

Act, 1882.

28. Winding up of existing company

company, including cash in deposit with

whose undertaking has been acquired- (1)

a bank, which has vested in the

The Central Government may, on the application

Corporation under this Act;

of any existing air company or on the application

whichever of the amount specified in clauses

of a majority in number representing three-

(a), (b) and (c) is the greatest.

fourths in value of its members holding ordinary

shares, by order in writing, authorise the existing

(3) The bonds aforesaid shall be issued by

air company the undertaking of which has vested

the Corporation with the previous approval of

in either of the Corporations to be wound up

the Central Government and shall be negotiable

voluntarily in accordance with the provisions

and shall be redeemed at their face value by the

of the Indian Companies Act, 1913 relating to

Corporation concerned on the demand of the

voluntary winding up:

holder within one hundred and eighty days after

the expiry of five years from the date of their

Provided that-

issue and the redemption of the bonds and

(a) the winding up of the company shall

payment of all interest there on shall be

commence on the day on which the Central

guaranteed by the Central Government.

CHAP. I

THE AIR CORPORATIONS ACT, 1953

Government authorises the winding up

the amount subscribed by each class of such

without the passing by the company of

members or having regard to the circumstances

any special or other resolution for

relating to the issue of the shares to the various

winding up; and

classes of members, specify in the direction,

and any such direction shall have effect not with

(b) the directors of the existing company

standing anything contained in the Indian

shall not be under an obligation to make

Companies Act, 1913 or in the articles of

any such statutory declaration as is

association or resolution of the company or in

required by section 207 of the Indian

any agreement, and every such company shall

Companies Act, 1913 and

be bound to comply with any such direction.

CHAPTER V

continued by the directors of the existing

company in office at the time the Central

AIR TRANSPORT COUNCIL

Government authorises its winding up

30. Constitution of Air Transport

and they shall be deemed to be joint

Council- ^a[(1) The Central Government may,

liquidators for the purpose of the said

from time to time, by notification in the Official

winding up with power to act by a majority

Gazette constitute] an Air Transport Council

of their number.

consisting of a Chairman and such other number

(2) For the purposes of winding up the affairs

of members not exceeding eleven as the Central

of any existing air company or for any other

government may appoint there to:

purpose necessary for enabling it to give effect

Provided that amongst the members to be so

to the provisions of this Act, the Central

appointed there shall at least be one person with

Government may, notwithstanding anything

experience in financial metters and one person

contained in this Act, permit the existing air

who is an employee of either of the Corporations

company to occupy, keep in its custody, or

with experience in labour matters.

utilise, as the case may be, for such period as it

may allow any office, books, accounts and other

^b[(2) If at any time the Central Government

documents and the services of any officers or

is of opinion that the continued existence of an

other employees, which have been transferred

Air Transport Council is not necessary, it may,

to either of the Corporations under this Act, on

by notification in the Official Gazette, declare

such terms and conditions as may be agreed

that the Air Transport Council shall be dissolved

between the Corporation in which the undertaking

with effect from such date as may be specified

has vested and the existing air company, or

in the notification, and thereupon the Air

failing agreement, as may be determined by the

Transport Council shall be deemed to be

Central Government.

dissolved, accordingly.]

[a] Section renumbered as sub-section (1) and in the sub-

29. Authorisation under section 28 may

section so renumbered the words “As soon as may be

contain certain directions- Any

after the commencement of this Act, the Central

authorisation granted under section 28 may

Government may cause to be constituted” substituted

include a direction requiring an existing air

by the Air Corporations (Amendment) Act, 1962 (17 of

1962), S. 3 (30-3-1962).

company the voluntary winding up of which has

been authorised under that section to distribute

[b] Inserted, ibid, S. 3 (30-3-1962).

its net assets among the various classes of

31. Functions of the Air Transport

members of the company in such proportion as

Council. - (1) It shall be the duty of the Air

the Central Government may, having regard to

Transport Council to consider-

THE AIR CORPORATIONS ACT, 1953

CHAP. I

(a) at the request of either of the

33. Proceedings of the Council- (1) The

Corporations any matter of the kind

Council shall regulate its own procedure.

referred to in section 38; and

(2) No proceedings of the Council shall be

(a) any matter of importance which may be

deemed to be invalid by reason merely of any

referred to it by the Director-General of Civil

vacancy in, or any defect in the constitution of,

Aviation or the Director-General of Posts and

the Council.

Telegraphs relating to matters of common

CHAPTER VI

interest, between either of the Corporations

and the Director-General of Posts and

CONTROL OF CENTRAL

Telegraphs, including rates for the carriage of

GOVERNMENT

postal articles by air, and to make

34. Power of Central Government to give

recommendations there on to the Central

directions.- (1) The Central Government may

Government.

give to either of the Corporations directions as

to the exercise and performance by the

2. At the request of the Central

Corporation of its functions, and the

Government, the Air Transport Council shall

Corporation shall be bound to give effect to any

investigate any matter relating to the fares,

such directions.

freight rates or other charges levied by either

Corporation in respect of any service or facility

(2) The Central Government may, if it is of

provided by the Corporation and of the adequacy

opinion that it is expedient in the national interest

or efficiency of such service or facility and

so to do, after consultation with the Corporation

shall make recommendations there on to the

concerned, direct either of the Corporations-

Central Government.

(a) to undertake any air transport service or

(3) The Council shall, if so required by the

other activity which the Corporation has

Central Government, tender advice to that

power to undertake;

Government in regard to financial and economic

(b) to discontinue or make any change in any

analysis, accounting, costing and statistical

scheduled air transport service or other

techniques and financial reporting relating to

activity which it is operating or carrying

air transport and, in particular, advise in regard

on;

to the matter specified in the proviso to sub-

section (2) of section 34.

proposes to do:

(4) The Central Government, after taking

any recommendation made by the Air Transport

Provided that, if, at the direction of the

Council under this section into consideration,

Central Government, the Corporation

may issue such directions in the matter as it

establishes, alters or continues to maintain an

thinks fit and such directions shall be binding

air transport service or other activity and

on the Corporation concerned.

satisfies the Central Government that during

the relevant financial year the Corporation has

32. Staff of the Council- The council shall

suffered an over-all loss in respect of the

have a Secretary and such other employees as

operation of all its air transport services and of

the Central Government may appoint, and the

all its other activities and also that the service

expenditure on the staff and other charges of

or activity so established, altered or continued

the Council shall be borne by the Central

to be maintained in compliance with the

Government.

CHAP. I

THE AIR CORPORATIONS ACT, 1953

directions of the Central Government as

estimate in respect thereof, including any

aforesaid has been operated at a loss in any

proposed investment of capital and increase in

financial year, then the Central Government

the strength of its total staff.

shall reimburse the Corporation to the extent

(2) If, during any financial year, either of the

of the loss relatable to the operation of that

Corporations engages or proposes to engage in

particular service or activity.

any air transport service or ancillary activity in

35. Prior approval of Central

addition to those specified in the prgramme

Government necessary in certain cases.-

previously submitted under sub-section (1) and

Neither Corporation shall, without the previous

a substantial alteration of the financial estimates

approval of the Central Government-

is likely to be involved thereby, the Corporation

shall submit to the Central Government for

(a) undertake any capital expenditure for

approval a supplementary programme of such

the purchase or acquisition of any

service activity and a supplementary estimate

immovable property or aircraft or any

of the expenditure and revenue to be incurred

other thing at a cost exceeding ^a[ such

and received by the Corporation in respect

amount as the Central Government may,

thereof during the remainder of that period:

from time to time, by order, fix in this

behalf.]

Provided that, to meet any unexpected traffic

demand or other special situation either of the

(b) enter into a lease of any immovable

Corporation may undertake any additional

property for a period exceeding ^b[ ten

service or other ancillary activity not specified

years] or

in the programme submitted under sub-section

(1) or sub-section (2) and subsequently submit

right or privilege having an original or

a report on the matter to the Central Government

book value exceeding ^a[ such amount as

in the prescribed manner.

the Central Government may, from time

(a) Substituted for the words ‘three months’ by the Air

to time, by order, fix in this behalf].

Corporations (Amendment) Act, 1962(17 of 1962),

S.4 (30-3-1962).

[a] Substituted for the words “rupees forty lakhs” in cl.(a)

and the words “rupees ten lakhs” in cl. (c) by the Air

37. Submission of Annual Report to

Corporations (Amendment) Act (24 of 1982), S.2)(i)

Parliament.- (1) Each of the Corporations

and (ii) (21-5-1982).

shall, as soon as may be after the end financial

[b] Substituted for the words “five years” by the Air

year, prepare and submit to the Central

Corporations (Amendment) Act (49 of 1971), S.8(1-2-

Government, in such form as may be prescribed

1972).

a report giving an account of its activities during

36. Submission of programme of work

the previous financial year, and the report shall

for each year.- (1) Each of the corporations

also give an account of the activities, if any,

shall prepare and submit to the Central

which are likely to be undertaken by the

Government, not less than ^a[two months] before

Corporation during the next financial year.

the commencement of the financial year of the

Corporation a statement showing the programme

(2) The Central Government shall cause

of operation and development of air transport

every report to be laid before both Houses of

services to be operated by the Corporation and

Parliament as soon as may be after it is

its associates during the forthcoming financial

submitted.

year and its other activities as well as its financial

THE AIR CORPORATIONS ACT, 1953

CHAP. I

CHAPTER VII

Corporation and delegate any of the functions

and powers of the Corporation to such

MISCELLANEOUS

Committee or Committees and may limit the

38. Corporations to act in mutual

exercise of such delegated authority to any

consultation.- It shall be the duty of each of

specified area.

the Corporations to enter into consultations

(2) Either of the Corporations may, in

with the other in matters of common interest to

relation to any particular matter or class of

the two Corporations including, in particular,

matters or to any particular area, by general or

the operation of scheduled air transport services,

special order, direct that any of its officers or

the routes on which such services should be

other employees may also exercise all or any of

operated by each of the Corporations, the

its powers under this Act (except the powers

frequency of such services, the passenger fares

given to it by this section) to the extent to which

and freight rates to be charged, the measures of

the Corporation deems it necessary for the

economy to be adopted, the provision of any

efficient running of its day to day administration.

services in regard to over-haul and maintenance

of aircraft or any other matter falling within the

[a] Substituted for the word “member” by the Air

Corporations (Amendment) Act (49 of 1971), S. 9 (1-

scope of the functions of either of the

2-1972).

Corporations, and, generally, in regard to

ensuring the fullest co-operation and co-

41. Advisory and Labour Relations

ordination in respect of all such matters.

Committees- ^a[* * *] Each of the Corporations

shall constitute in the prescribed manner a

39. Transfer of scheduled air transport

Labour Relations Committee consisting of

services or assets from one Corporation to

representatives of the Corporation and of its

the other- The Central Government may, for

employees, so however, that the number of

the purpose of improving the air transport

representatives of the employees on the

services provided by either of the Corporations

Committee shall not be less than the number of

or for effecting better co-ordination in respect

representatives of the Corporation, and it shall

of such services, direct that with effect from

be the duty of Labour Relations Committee to

such date as may be specified in the direction

advise the Corporation on matters which relate

and subject to such conditions as may be similarly

to the welfare of the employees or which are

specified,-

likely to promote and secure amity and good

(a) any scheduled air transport service

relations between the two.

operated by one Corporation shall no

[a] Sub-section "(1)" and the brackets and figure "(2)"

longer be operated by that Corporation

omitted by the Air Corporations (Amendment) Act (49

but shall be operated by the other

of 1971), S. 10(1-2-1972)

Corporation, and

42. Meetings of the Corporation.- (1)

Meetings of the Corporation shall be held at

(b) any property belonging to one

such times and places and, subject to sub-

Corporation shall be transferred to the

sections (2) and (3), the proceedings of the

other Corporation.

Corporation shall be conducted in such manner

40. Corporation may delegate their

as may be provided by the regulations.

powers- (1) Each of the Corporations may

(2) The Chairman or in his absence any

appoint a Committee or Committees consisting

person chosen by the ^a[directors] present from

of some or any of its ^a[directors] with or without

amongst themselves shall preside at the meeting.

the addition of any officer or employee of the

CHAP. I

THE AIR CORPORATIONS

ACT, 1953

(3) At a meeting of the Corporation all

Corporations; and such other categories

questions shall be decided by a majority votes

of officers as may be specified from

of the ^a[directors] present, and for this purpose,

time to time under sub-section (1) of

each ^a[director] shall have one vote and in the

section 8;

case of equality of votes the Chairman or; in his

(b)

the form in which the budget of the two

absence, the person presiding at the meeting

Corporations shall be prepared and

shall have a second or casting vote.

submitted to the Central Government;

[a] Substituted for the word “members” in Cls. (2) and

and the form and the manner in which the

(3) and “members” in Cl. (3) by the Air Corporations

accounts of the two Corporations shall

(Amendment) Act 49 of 1971, S. ll (1-2-1972).

be maintained and in which any returns

43. Penalty for wrongful withholding of

or statistics shall be furnished or

property- If a director, managing agent,

submitted;

manager or other officer or employee of an

(c)

the reports which should be submitted

existing air company who wilfully withholds or

by the Corporations and the intervals

fails to deliver to the Corporation as required

within which they should be so submitted;

by sub-section (2) of section 21 any books,

documents or papers which may be in his

(d)

the maintenance of books of accounts;

possession or who wrongfully obtains

(e)

the establishment and maintenance of a

possession of any property of any such company

fund by each of the Corporations for

which has vested in either of the Corporations

meeting any liability arising out of any

under this Act or having any such property in his

act or omission in respect of which the

possession wrongfully withholds it from the

Corporation may incur any liability to

Corporation or wilfully applies it to purposes

any third party;

other than those expressed in, or authorised by,

this Act shall on the complaint of the

(f)

the provision of ^b[* *] reserve and other

Corporation concerned, be punishable with fine

funds;

which may extend to one thousand rupees and

(g)

the prohibition of persons who are

may be ordered by the Court trying the offence

directly or indirectly interested in any

to deliver up or refund within a time to be fixed

subsisting contract with either of the

by the Court any such property improperly

Corporations from becoming or being

obtained or wrongfully withheld or wilfully

employees of the Corporation;

misapplied or in default to suffer imprisonment

which may extend to one year.

(h)

the powers which may be exercised by

either of the Corporations to facilitate

44. Power to make rules- The Central

the acquisition of any undertaking;

Government may, by notification in the official

Gazette, make rules to give effect to the

(i)

the issue of bonds by either of the

provisions of this Act.

Corporations to meet any compensation

payable by it under this Act;

(2) In particular, and without prejudice to

the generality of the foregoing power, such

(j)

the training of the employees of either

rules may provide for all or any of the following

of the Corporations or other persons

matters, namely:-

and fees which may in its discretion be

charged therefor;

(a) the terms and conditions of service of

the ^a[managing directors] of the two

THE AIR CORPORATIONS ACT, 1953

CHAP. I

(k) the term of office and other conditions

45. Power of Corporations to make

of service of members of the Air

regulations- (1) ^a[Subject to the provisions

Transport Council constituted under

of sub-section (3), each of the Corporations

section 30;

may] by notification in the Official Gazette,

make regulations not inconsistent with this Act

(l) the prohibition of any interference with

or the rules made thereunder for the

any air transport services or with any

administration of the affairs of the Corporation

property of the Corporation or of any

and for carrying out its functions.

interference with or obstruction of any

officer or employee of the Corporation

(2) In particular and without prejudice to the

in the performance of his duty;

generality of the foregoing power, any such

regulations^b may provide for all or any of the

(m) the punishment which shall not exceed

following matters, namely:-

imprisonment for three months or fine

of rupees one thousand but which may

(a)

the time and place of the meetings of the

consist of both such imprisonment and

Corporation and the procedure to be

fine, in respect of any contravention of

followed for the transaction of business

the provisions of any rules made under

at such meetings;

this section.

(b) the terms and conditions of service of

^c[(3) Every rule made under this section

officers and other employees of the

shall be laid, as soon as may be after it is made,

Corporation other than the ^c[managing

before each House of Parliament while it is in

director] and officers of any other

session for a total period of thirty days which

categories referred to in section 44;

may be comprised in one session or in ^d[two or

(c)

the issue of passes by the Corporation to

more successive sessions, and if, before the

its officers and other employees either

expiry of the session immediately following

free of cost or at concessional rates for

the session or the successive sessions] both

travel on its air services and the

Houses agree in making any modification in the

conditions relating thereto;

rule or both Houses agree that the rule should

not made, the rule shall thereafter have effect

(d) the authentication of orders and decisions

only in such modified form or be of no effect,

of the Corporation and the instruments

as the case may be, so however that any such

executed by, it;

modification or annulment shall be without

^d[(e)

the grant of refund in respect of any

prejudice to the validity of anything previously

unused tickets and the issue of passes

done under that rule.]

free of cost or at concessional rates;]

[a] Substituted for the words “General Managers” by the

(f)

the period after the expiry of which

Air Corporations (Amendment) Act (49 of 1971), S.

12(1-2-1972).

unclaimed goods may be disposed of

and the manner of their disposal;

(b) Word “depreciation” omitted, Ibid.

[c] Substituted for the original by the Air Corporations

(g) the conditions governing the carriage of

(Amendment) Act, 1962 (17 of 1962), S. 5 (30-3-1962).

persons or goods on its services.

[d] Substituted for the words “two successive sessions,

^e[(3) No regulation under clause (b) of sub-

and if before the expiry of the session in which it is so

laid or the session immediately following” by the Air

section (2) shall be made except with the previous

Corporation (Amendment) Act (24 of 1982), S.3 (21-

approval of the Central Government.]

5-1982)

CHAP. I

THE AIR CORPORATIONS ACT, 1953

[(4) Every regulation made under this

accordance with the provisions of this Act, of

section shall be laid, as soon as may be after it

the undertaking of such company in that

is made, before each House of Parliament,

Corporation shall be the sum of the amount

while it is in session, for a total period of thirty

computed in accordance with the provisions of

days which may be comprised in one session or

paragraph II, less the sum of the amounts

in two or more successive sessions, and if,

computed in accordance with the provisions of

before the expiry of the session immediately

paragraph III.

following the session or the successive sessions

Paragraph II. - The aggregate written

aforesaid, both Houses agree in making any

down value of all airframes of aircraft in respect

modification in the regulation or both Houses

of which there are certificates of airworthiness

agree that the regulation should not be made,

in force or, which can be rendered fit for

the regulation shall thereafter have effect only

certificates of airworthiness if the Corporation

in such modified form or be of no effect, as the

concerned were to incur expenditure within

case may be; so, however, that any such

the normal rates for rendering the airframes

modification or annulment shall be without

airworthy, plus-

prejudice to the validity of anything previously

A sum of Rs. 12,000 in respect of each

done under that regulation.

airframe of a Dakota aircraft and a sum Rs.

(a) Substituted by the Air Corporations (Amendment) Act

24,000 in respect of each airframe of a Viking

49 of 1971, S.13(1-2-1972).

aircraft in any case where the existing air

(b) For some such Regulations, see S. R. O. 2462 to 2464

company had obtained a certificate of

in Gaz. Ind., Extra., 29-7-1954, Pt. II, Section 3, pages

1169 to 1171; for International Carriage of Cargo

airworthiness in respect of it within ninety days

(other than Baggage and Mail) Regulations, 1973 and

immediately proceeding the appointed date or

International Carriages (Passenger and Baggage)

if a certificate of airworthiness had not actually

Regulations, 1973, see Gaz. of India, 1973, Pt. II,

Section 4, pp. 1674-1675; (these Regulations supersede

been obtained within that period but the existing

Indian Airlines (Conditions of Carriage) Regulations,

air company had incurred expenditure within

1967).

that period for the purpose of rendering that

airframe airworthy, the value, of the spare parts

Air Corporations (Amendment) Act (49 of 1971) Section

used for the purpose subject to a maximum of

13(1-2-1972).

Rs. 12,000 in case of each airframe of a Dakota

(d) Substituted for the original clause (e) by the Air

aircraft and Rs.24,000 in the case of each

Corporations (Amendment) Act 1962 (17 of 1962).

S.6(30-3-1962).

airframe of a Viking aircraft.

(e) Inserted by the Air Corporations (Amendment) Act

NOTE.- In this Schedule, the expression “

(49 of 1971), S.13(1-2-1972).

airframe” includes also the equipment

(f) Inserted by the Air Corporations (Amendment) Act

of the aircraft, whether fixed or re-

(24 of 1982), S.4(21-5-1982).

movable;

THE SCHEDULE

(b) the aggregate written down value of all

(See section 25)

such power plants, aeroengines, air screws,

spare aeroengines and spare air screws (all of

PRINCIPLES FOR DETERMINING

which are in this Schedule collectively referred

COMPENSATION UNDER THIS ACT

to as power plants) as are suitable for use in the

Paragraph I. - The compensation which

airframes mentioned in sub-clause (a) and as

shall be given by Indian Airlines or Air India

are of an approved standard or can be rendered

International, as the case may be, to any existing

fit

to be of an approved standard if the

air company in respect of the vesting, in

Corporation concerned were to incur

THE AIR CORPORATIONS ACT, 1953

CHAP. I

expenditure within the normal rates for such

purposes, plus the following, namely:-

general stores and all such other serviceable

stores and spares parts (all of which are in this

(i) a sum of Rs. 6,000 in respect of each

Schedule collectively referred to as stores and

engine of a Dakota aircraft and a sum of Rs.

spare parts) belonging to the existing air

12,000 in respect of each engine of a Viking

company as are suitable for use in respect of

aircraft in any case where the existing air

the aircraft or power plants referred to in sub-

company had made it an approved engine within

clauses (a) and (b), reduced in each case by 20

a period of ninety days immediately proceeding

per cent, of such case of purchase:

the appointed date or if the engine had not been

made completely fit to be an approved engine

Provided that the reduction shall be 10 per

within that period but the existing air company

cent, in the case of stores and spare parts

had incurred expenditure within the said period

pertaining to Constellation and Skymaster

for the purpose of making that engine an approved

aircraft.

engine, then, the value of the spare parts used

NOTE- In this Schedule-

for that purpose subject to a maximum of Rs.

6,000 in the case of each engine of a Dakota

(a) stores shall be deemed to be serviceable

aircraft and Rs. 12,000 in the case of each

if they are such as to satisfy the requirements

engine of a Viking aircraft; and

laid down in Section E of Schedule III to the

Indian Aircraft Rules, 1937;

(ii) a sum of Rs. 2,000 in respect of the air

screws and accessories of the power plant of a

(b) without prejudice to the clause

Dakota aircraft and a sum of Rs. 4,000 in respect

immediately proceeding stores (other than

of the air screws and accessories of the power

general stores) and spare parts shall also be

plant of a Viking aircraft in any case where the

deemed to be serviceable if by incurring

air screws and accessories had been rendered

expenditure of an amount not exceeding half

completely fit for the approved standard within

the costs of purchase of such stores and spare

a period of ninety days immediately preceding

parts, they can be rendered suitable for use in

the appointed date or if the same had not been

respect of the aircraft or power plants;

rendered completely fit for that standard within

(d) the aggregate actual cost to the existing

that period but the existing air company had

air company of all lands other than lease-holds;

incurred expenditure within that period for the

purpose of rendering the same fit for the

(e) the total amount of the premiums paid by

approved standard, then the value of the spare

the company in respect of all lease-holds

parts used for that purpose subject to a maximum

reduced in the case of each such premium by an

of Rs. 2,000 in the case of air screws and

amount which bears to such premium the same

accessories of a Dacota aircraft and Rs. 4,000

proportion as the expired term on the appointed

in the case of air screws and accessories of a

date of the lease in respect of which such

Viking aircraft.

premium shall have been paid bears to the total

term of the lease;

NOTE.- In this Schedule, the expression” ap-

proved standard” means such condi-

(f) the scrap value of all such aircraft, power

tion of efficiency of the power plant

plants, propellers and the accessories, spare

as satisfies the requirements laid down

parts and stores, not falling within any of the

in Section E of Schedule III to the

preceding sub-clauses and all properties as have

Indian Aircraft Rules, 1937;

become obsolete on the appointed date, the

scrap value for the purposes of this Act being

CHAP. I

THE AIR CORPORATIONS ACT, 1953

one per cent of the book value of the relevant

(m) the aggregate written down value of all

item of property;

tangible assets other than those falling within

the preceding clauses;

(g) the price paid by the existing air company

for any trustee security held by it;

(n) an aggregate amount not exceeding ten

thousand rupees as may be agreed upon between

(h) the value of any shares held by any

the Corporation and the existing air company

existing air company in any other existing air

concerned or, failing agreement, which may be

company the value being calculated on the

assessed by the Tribunal, in respect of all such

basis of the valuation of the air transport

assets, intangible or otherwise, as do not fall

undertaking of that other company in accordance

within any of the preceding sub-clauses and in

with the provisions of this Schedule;

respect of the loss of any future profits which

(i) the market value on the appointed date or

the existing air company might have earned but

the purchase price, whichever is less, of any

for the passing of this Act:

other investments held by any existing air

Provided that in assessing any amount under

company in any concern other than another

this clause regard shall be had to the following

existing air company which subject to the

circumstances, namely:-

provisions of Section 22, have vested in the

Corporation;

(i) the profits, if any, earned by it annually

during the six years immediately

(j) the amount of cash held by any existing

proceeding the appointed date on which

air company on the appointed date whether in

income-tax has been paid,

deposit with a bank or otherwise;

(ii) the subsidies, if any, given to that

(k) the amount of debts other than bad debts

company by the Central Government

due to any existing air company, to the extent to

during such period, and

which they are reasonable considered to be

recoverable, less the amount of the debts, if

(iii) the probability or otherwise of the

any, excluded from the transfer to the

company earning future profits if it were

Corporation concerned under the provisions of

allowed to continue its scheduled air

Section 22;

transport services for the remaining

period of the licence held by it after

(l) the aggregate cost of all licence fees

having due regard to the fact that the

paid by the company under clause (c) of sub-

licence held by it did not confer any

rule (1) of Rule 154 of the Indian Aircraft,

monopoly upon it in respect of the routes

1937, in respect of the licences granted to it for

concerned and the fact that no subsidy

the operation of any scheduled air transport

would have been payable by the Central

services and held by it on the appointed date and

Government after the 31st day of

which but for the provisions of section 19

December, 1952.

would continue to remain valid plus a sum of

Rs. 100 for each such licence; provided that the

Explanation A.- For the purpose of this

fees paid for each such licence shall be reduced

Schedule, the written down value in respect of

by an amount which bears to such fees the same

each class of assets means the actual cost to the

proportion as the period of the licence which

existing air company of such assets respectively,

shall have expired on the appointed date bears

less the total depreciation calculated at the

to the total period of the licence;

rates and in manner following, namely:-

THE AIR CORPORATIONS ACT, 1953

CHAP. I

(i) in respect of each airframe, depreciation

acquisition the aggregate amount of

shall be calculated at 15 percent per annum for

depreciation calculated as aforesaid for

constellation and Skymaster aircraft and 18

the preceding two years;

percent per annum for other aircraft from the

and so on;

date on which the aircraft concerned was first

used in revenue operations by the company till

(iii) in respect of all tangible assets falling

the 31st day of December, 1952, the rates

within clause (m) of paragraph II,

being applied as follows :-

depreciation shall be calculated at the

normal annual rates for which provision

for the first year, on the actual cost of

is made in the Indian Income-tax Act,

acquisition;

1922, and in the manner provided therein,

for the second year, on an amount

but excluding initial or other special

obtained by reducing from the actual

depreciation, from the date such assets

cost of acquisition the amount of

were acquired or created by the existing

depreciation calculated as aforesaid for

air company until the 31st day of

the first year;

December, 1952:

for the third year, on an amount obtained

Provided that in respect of any such asset

by reducing from the actual cost of

for which no provision has been made in the

acquisition the aggregate amount of

Indian Income-tax Act, 1922, the rate of

depreciation calculated as aforesaid for

depreciation shall be 10 per cent, per annum:

the preceding two years ;

Provided further that in respect of any such

and so on;

asset situate on the leasehold land other than

land rented from Government, the depreciation

(ii) in respect of power plants, the

shall be either -

depreciation shall be calculated at 20

per cent. per annum for Constellation

(a) as provided in the proceeding provisions

and Skymaster aircraft and at 24 per

of this clause, or

cent. per annum for other aircraft from

(b) equivalent to an amount which bears the

the date on which the power plant

same ratio to the total cost of acquisition

concerned was first used in revenue

or creation of the asset (situate on

operations by the company till the 31st

leasehold land) as the expired portion of

day of December, 1952, the rates being

the lease on the appointed date bears to

applied as follows:-

the total period of the lease currently

for the first year, on the actual cost of

running,

acquisition;

whichever is greater.

for the second year, on an amount

Explanation B.- For the purpose of this

obtained by reducing from the actual

Schedule, the actual cost shall include, in the

cost of acquisition the amount of

case of airframes, in addition to the cost of

depreciation calculated as aforesaid for

purchase or acquisition-

the first year;

(i) the actual expenditure, if any, incurred

for the third year on an amount obtained

by the existing air company for

by reducing from the actual cost of

CHAP. I

THE AIR CORPORATIONS ACT, 1953

reconversion or reconstruction of the

power plant, in order to render its fit for the

airframe in order to render it fit for civil

purposes of a certificate under paragraph 4 of

air transport before it was first used in

section E of Schedule III to the Indian Aircraft

revenue operations by the company, plus,

Rules, 1937, before the date of its first use in

revenue operations.

(ii) the actual expenditure incurred in making

the airframes airworthy before its first

Paragraph III.- Subject to the provisions

use in revenue operations.

of sections 22 and 23, all such liabilities as

have been declared by the existing air company

Explanation C.- In the case of power

under the provisions of section 22:

plants, the actual cost shall include, in addition

to the cost of purchase or acquisition, the cost

Provided that if any liability so declared has

incurred by the company for conversion or

been understated, the Corporation may recover

reconditioning, repairing or overhauling the

the additional amount from the company.

THE AIR CORPORATIONS (TRANSFER OF UNDERTAKINGS AND REPEAL) ORDINANCE,

1994

CHAP. II

CHAPTER II

THE AIR CORPORATIONS (TRANSFER OF

UNDERTAKINGS AND REPEAL) ORDINANCE,

1994.

TABLE OF CONTENTS

SECTION

PAGE

1. Short title and commencement.

2. Definitions

3. Undertakings of corporations to vest in companies

4. General effect of vesting undertakings in the companies

5. Licences etc. deemed to have been granted to companies

6. Tax exemption or benefit to continue to have effect.

7. Guarantee to be operative

8. Provisions in respect of officers and other employees of corporations

9. Power of Central Government to give directions

10. Power to remove difficulties

11. Repeal of Act 27 of 1953 and corporations to cease to exist

THE AIR CORPORATIONS (TRANSFER OF UNDERTAKINGS AND REPEAL) ORDINANCE,

1994

CHAP. II

CHAPTER II

THE AIR CORPORATIONS (TRANSFER OF

UNDERTAKINGS AND REPEAL) ORDINANCE,

1994.

(4 OF 1994)

Promulgated by the President in the Forty-fifth Year of the Republic of India.

An ordinance to provide for the transfer and

section 3;

vesting of the undertakings of Indian Airlines

(b) "company" means "Indian Airlines

and Air India respectively to and in the companies

Limited" or 'Air India Limited" formed

formed and registered as Indian Airlines Limited

and registered under the Companies Act,

and Air India Limited and for matters connected

1956;

therewith or incidental thereto and also to repeal

the Air Corporations Act, 1953.

and "Air India" established under section

Whereas the Air Corporations (Transfer of

3 of the Air Corporations Act, 1953

Undertakings and Repeal) Bill, 1992 has been

(hereinafter referred to as the principal

introduced in Parliament but has not yet been

Act) ; and "corporation" means either of

passed;

the corporations;

And whereas Parliament is not in session

3. Undertakings of corporations to vest

and the President is satisfied that circumstances

in companies- On such date as the Central

exist which render it necessary for him to take

Government may, by notification in the Official

immediate action to give effect to the provisions

Gazette, appoint, there shall be transferred to,

of the Bill;

and vest in, -

Now, therefore, in exercise of the powers

(a) Indian Airlines Limited, the undertaking

conferred by clause (1) of article 123 of the

of Indian Airlines; and

Constitution the President is pleased to

promulgate the following Ordinance :-

(b) Air India Limited, the undertaking of Air

India.

1. Short title and commencement - (1)

This Ordinance may be called the Air

4. General effect of vesting undertakings

Corporations (Transfer of Undertakings and

in the companies - (1) The undertaking of a

Repeal) Ordinance, 1994.

corporation which is transferred to, and which

vests in, a company under section 3 shall be

(2) It shall come into force at once.

deemed to include all assets, rights, powers,

2. Definitions - In this Ordinance, unless

authorities and privileges and all properties,

the context otherwise requires,-

movable and immovable, real or personal,

corporeal or incorporeal, in possession

(a) "appointed day" means such date as the

reservation, present or contingent, of whatever

Central Government may, by notification

nature and wheresoever situate, including lands,

in the Official Gazette, appoint under

THE AIR CORPORATIONS (TRANSFER OF UNDERTAKINGS AND REPEAL) ORDINANCE,

1994

CHAP. II

works, workshops, aircrafts, cash balances,

force shall be deemed to have been granted to

capital, reserves, reserve funds, investments,

the company in which the undertaking of that

tenancies, leases and book debts and all other

corporation has vested.

rights and interests arising out of such property

6. Tax exemption or benefit to continue

as were immediately before the appointed day

to have effect - (1) Where any exemption

in the ownership, possession or power of that

from, or any assessment with respect to, or any

corporation in relation to its undertaking,

tax has been granted or made or any benefit by

whether within or outside India, all books of

way of set off or carry forward, as the case may

accounts and documents relating thereto and

be, of any unabsorbed depreciation or investment

shall also be deemed to include all borrowings,

allowance or other allowance or loss has been

liabilities and obligations of whatever kind then

extended or is available to a corporation under

subsisting of that corporation in relation to its

the Income-tax Act, 1961, such exemption,

undertaking.

assessment or benefit shall continue to have

(2) All contracts and working arrangements

effect in relation to the company in which the

subsisting immediately before the appointed

undertaking of that corporation has vested.

day and affecting a corporation shall in so far as

(2) Where any payment made by a

they relate to the undertaking of that corporation

corporation is exempt from deduction of the

cease to have effect or to be enforceable against

tax at source under any provision of the Income-

that corporation and shall be of as full force and

tax Act, 1961, the exemption from tax will

effect against or in favour of the company in

continue to be available as if the provisions of

which the undertaking has vested by virtue of

the Act made applicable to the corporation

this Ordinance and enforceable as fully and

were operative in relation to the company in

effectually as if, instead of the corporation, the

which the undertaking of that corporation has

company had been named therein or had been a

been vested.

party thereto.

(3) The transfer and vesting of the

(3) Any proceeding or cause of action

undertaking or any part thereof in terms of

pending or existing immediately before the

section 3 shall not be construed as a transfer

appointed day by or against a corporation in

within the meaning of the Income-tax Act, 1961

relation to its undertaking may, as from that

for the purposes of capital gains.

day, be continued and enforced by or against the

company in which it has vested by virtue of this

7. Guarantee to be operative - Any

Ordinance, as it might have been enforced by or

guarantee given for or in favour of a corporation

against that corporation if this Ordinance had

with respect to any loan or lease finance shall

not been passed and shall cease to be enforceable

continue to be operative in relation to the

by or against that corporation.

company in which the undertaking of that

corporation has vested by virtue of this

5. Licences etc. deemed to have been

Ordinance.

granted to companies - With effect from the

appointed day, all licences, permits, quotas and

8. Provisions in respect of officers and

exemptions; granted to a corporation in

other employees of corporations - (1) Every

connection with the affairs and business of that

officer or other employee of a corporation

corporation under any law for the time being in

(except a Director of the Board, Chairman,

Managing Director or any other person entitled

THE AIR CORPORATIONS (TRANSFER OF UNDERTAKINGS AND REPEAL) ORDINANCE,

1994

CHAP. II

to manage the whole or a substantial part of the

service of a corporation and are entitled to any

business and affairs of the corporation) serving

benefits, rights or privileges shall be entitled to

in its employment immediately before the

receive the same benefits, rights or privileges

appointed day shall, in so far as such officer or

from the company in which the undertaking of

other employe is employed in connection with

that corporation has vested.

the undertaking which has vested in a company

(5) The trusts of the Provident Fund or Pilots

by virtue of this Ordinance become, as from the

Group Insurance and Superannuation Scheme

appointed day an officer or other employee, as

of the corporation and any other bodies created

the case may be, of the company in which the

for the welfare of officers or employees would

undertaking has vested and shall hold his office

continue to discharge their functions in the

or service therein by the same tenure, at the

company as was being done hitherto in the

same remuneration, upon the same terms and

corporation. Tax exemption granted to provident

conditions, with the same obligations and with

Fund or Pilots Group Insurance and

the same rights and privileges as to leave, passage,

Superannuation Scheme would continue to be

insurance, superannuation scheme, provident

applied to the company.

fund, other funds, retirement, pension, gratuity

and other benefits as he would have held under

(6) Notwithstanding anything contained in

that corporation if its undertaking had not vested

this Ordinance or in the Companies Act, 1956

in the company and shall continue to do so as an

or in any other law for the time being in force or

officer or other employee, as the case may be,

in the regulations of a corporation, no Director

of the company or until the expiry of a period of

of the Board, Chairman, Managing Director

six months from the appointed day if such

or any other person entitled to manage the

officer or other employee opts not to be the

whole or a substantial part of the business and

officer or other employee of the company within

affairs of that corporation shall be entitled to

such period.

any compensation against that corporation or

against the company, as the case may be, for the

(2) Where an officer or other employee of

loss of office or for the premature termination

a corporation opts under sub-section (1) not to

of any contract of management entered into by

be in the employment or service of the company

him with that corporation.

in which the undertaking of that corporation has

vested, such officer or other employee shall be

9. Power of Central Government to give

deemed to have resigned.

directions- The Central Government may give

to a company directions as to the exercise and

(3) Notwithstanding anything contained in

performance by that company of its functions

the Industrial Disputes Act, 1947 or in any

and that company shall be bound to give effect

other law for the time being in force, the transfer

to any such directions.

of the services of any officer or other employee

of a corporation to a company shall not entitle

10. Power to remove difficulties - (1) If

such officer or other employee to any

any difficulty arises in giving effect to the

compensation under the said Act or under any

provisions of this Ordinance, the Central

other law for the time being in force and no

Government may by order published in the

such claim shall be entertained by any court,

Official Gazette, not inconsistent with the

tribunal or other authority.

provisions of this Ordinance, remove the

difficulty :

(4) The officers and other employees who

have retired before the appointed day from the

Provided that no such order shall be made

THE AIR CORPORATIONS (TRANSFER OF UNDERTAKINGS AND REPEAL) ACT,

1994

CHAP. III

CHAPTER III

THE AIR CORPORATIONS (TRANSFER OF

UNDERTAKINGS AND REPEAL) ACT,

1994.

TABLE OF CONTENTS

SECTION

PAGE

1. Short title and commencement.

2. Definitions

3. Undertakings of corporations to vest in companies

4. General effect of vesting undertakings in the companies

5. Licences etc. to be deemed to have been granted to companies

6. Tax exemption or benefit to continue to have effect .

7. Guarantee to be operative

8. Provisions in respect of officers and other employees of corporations

9. Power of Central Government to give directions

10. Power to remove difficulties

11. Repeal of Act 27 of 1953 and cesser of corporations

12. Repeal and Saving.

THE AIR CORPORATIONS (TRANSFER OF UNDERTAKINGS AND REPEAL) ACT,

1994

CHAP. III

CHAPTER III

THE AIR CORPORATIONS (TRANSFER OF

UNDERTAKINGS AND REPEAL) ACT,

1994.

(13 OF 1994)

(21 MARCH 1994)

An Act to provide for the transfer and vesting

“corporation” means either of the

of the undertakings of Indian Airlines and Air

corporations.

India respectively to and in the companies

3. Undertakings of corporations to vest

formed and registered as Indian Airlines Limited

in companies- On such date as the Central

and Air India Limited and for matters connected

Government may, by notification in the Official

therewith or incidental thereto and also to repeal

Gazette, appoint, there shall be transferred to,

the Air Corporations Act, 1953.

and vest in, -

Be it enacted by Parliament in the Forty-

(a) Indian Airlines Limited, the undertaking

fifth Year of the Republic of India as follows:-

of Indian Airlines; and

1. Short title and commencement - (1)

(b) Air India Limited, the undertaking of Air

This Act may be called the Air Corporations

India.

(Transfer of Undertakings and Repeal) Act,

1994.

4. General effect of vesting of

undertakings in the companies - (1) The

(2) It shall be deemed to have come into

undertaking of a corporation which is transferred

force on the 29th day of January, 1994.

to, and which vests in a company under section

2. Definitions - In this Act, unless the

3 shall be deemed to include all assets, rights,

context otherwise requires,-

powers, authorities and privileges and all

properties, moveable and immovable, real or

(a) “appointed day” means such date as the

personal, corporeal or incorporeal, in

Central Government may, by notification

possession or reservation, present or

in the Official Gazette, appoint under

contingent, of whatever nature and wheresoever

section 3;

situate, including lands, works, workshops,

(b) “company” means “Indian Airlines

aircraft, cash balances, capital reserves, reserve

Limited” or “Air India Limited” formed

funds, investments, tenancies, leases and book

and registered under the Companies Act,

debts and all other rights and interests arising

1956;

out of such property as were immediately before

the appointed day in the ownership, possession

or power of that corporation in relation to its

and “Air India” established under section

undertaking, whether within or outside India,

3 of the Air Corporations Act, 1953 and

all books of account and documents relating

THE AIR CORPORATIONS (TRANSFER OF UNDERTAKINGS AND REPEAL) ACT,

1994

CHAP. III

thereto and shall also be deemed to include all

extended or is available to a corporation under

borrowings liabilities and obligations of

the Income-tax Act, 1961, such exemption,

whatever kind then subsisting of that corporation

assessment or benefit shall continue to have

in relation to its undertaking.

effect in relation to the company in which the

undertaking of that corporation has vested.

(2) All contracts and working arrangements

subsisting immediately before the appointed

(2) Where any payment made by a

day and affecting a corporation shall, in so far

corporation is exempt from deduction of the

as they relate to the undertaking, of that

tax at source under any provision of the Income-

corporation, cease to have effect or to be

tax Act 1961, the exemption from tax will

enforceable against that corporation and shall

continue to be available as if the provisions of

be of as full force and effect against or in favour

the Act made applicable to the corporation

of the company in which the undertaking has

were operative in relation to the company in

vested by virtue of this act and enforceable as

which the undertaking of that corporation has

fully and effectually as if, instead of the

been vested.

corporation, the company had been named

(3) The transfer and vesting of the

therein or had been a party thereto.

undertaking or any part thereof in terms of

(3) Any proceeding or cause of action

section 3 shall not be construed as a transfer

pending or existing immediately before the

within the meaning of the Income-tax Act, 1961

appointed day by or against a corporation in

for the purposes of capital gains.

relation to its undertaking may, as from that

7. Guarantee to be operative - Any

day, be continued and enforced by or against the

guarantee given for or in favour of a corporation

company in which it has vested by virtue of this

with respect to any loan or lease finance shall

Act, as it might have been enforced by or against

continue to be operative in relation to the

that corporation if this Act had not been passed,

company in which the undertaking of that

and shall cease to be enforceable by or against

corporation has vested by virtue of this Act.

that corporation.

8. Provisions in respect of officers and

5. Licences, etc., to be deemed to have

other employees of corporations - (1) Every

been granted to companies - With effect

officer or other employee of a corporation

from the appointed day, all licences, permits,

(except a Director of the Board, Chairman,

quotas and exemptions granted to a corporation

Managing Director or any other person entitled

in connection with the affairs and business of

to manage the whole or a substantial part of the

that corporation under any law for the time

business and affairs of the corporation) serving

being in force, shall be deemed to have been

in its employment immediately before the

granted to the company in which the undertaking

appointed day shall, in so far as such officer or

of that corporation has vested.

other employee is employed in connection with

6. Tax exemption or benefit to continue

the undertaking which has vested in a company

to have effect - (1) Where any exemption

by virtue of this Act, become, as from the

from, or any assessment with respect to, any tax

appointed day an officer or other employee, as

has been granted or made or any benefit by way

the case may be, of the company in which the

of set off or carry forward, as the case may be,

undertaking has vested and shall hold his office

of any unabsorbed depreciation or investment

or service therein by the same tenure, at the

allowance or other allowance or loss has been

same remuneration upon the same terms and

THE AIR CORPORATIONS (TRANSFER OF UNDERTAKINGS AND REPEAL) ACT,

1994

CHAP. III

conditions, with the same obligations and with

for the welfare of officers or employees would

the same rights and privileges as to leave, passage,

continue to discharge their functions in the

insurance, superannuation scheme, provident

company as was being done hitherto in the

fund, other funds, retirement, pension, gratuity

corporation. Tax exemption granted to provident

and other benefits as he would have held under

Fund or Pilots Group Insurance and

that corporation if its undertaking had not vested

Superannuation Scheme would continue to be

in the company and shall continue to do so as an

applied to the company.

officer or other employee, as the case may be,

(6) Notwithstanding anything contained in

of the company or until the expiry of a period of

this Ordinance or in the Companies Act, 1956

six months from the appointed day if such

or in any other law for the time being in force or

officer or other employee opts not to be the

in the regulations of a corporation, no Director

officer or other employee of the company within

of the Board, Chairman, Managing Director or

such period.

any other person entitled to manage the whole

(2) Where an officer or other employee of

or a substantial part of the business and affairs

a corporation opts under sub-section (1) not to

of that corporation shall be entitled to any

be in the employment or service of the company

compensation against that corporation or against

in which the undertaking of that corporation has

the company, as the case may be, for the loss of

vested, such officer or other employee shall be

office or for the premature termination of any

deemed to have resigned.

contract of management entered into by him

with that corporation.

(3) Notwithstanding anything contained in

the Industrial Disputes Act, 1947 or in any

9. Power of Central Government to give

other law for the time being in force, the transfer

directions- The Central Government may give

of the services of any officer of other employee

to a company directions as to the exercise and

of a corporation to a company shall not entitle

performance by that company of its functions,

such officer or other employee to any

and that company shall be bound to give effect

compensation under the said Act or under any

to any such directions.

other law for the time being in force and no

10. Power to remove difficulties - (1) If

such claim shall be entertained by any court,

any difficulty arises in giving effect to the

tribunal or other authority.

provisions of this Act, the Central Government

(4) The officers and other employees who

may by order published in the Official Gazette,

have retired before the appointed day from the

not inconsistent with the provisions of this Act,

service of a corporation and are entitled to any

remove the difficulty

benefits, rights or privileges shall be entitled to

Provided that no such order shall be made

receive the same benefits, rights or privileges

after the expiry of a period of two years from

from the company in which the undertaking of

the coming into force of this Act.

that corporation has vested.

(2) Every order made under sub-section (1)

(5) The trusts of the Provident Fund or Pilots

shall be laid before each House of Parliament.

Group Insurance and Superannuation Scheme

of the corporation and any other bodies created

THE INTERNATIONAL AIRPORTS AUTHORITY ACT, 1971

CHAP. IV

CHAPTER IV

THE INTERNATIONAL AIRPORTS AUTHORITY ACT, 1971

TABLE OF CONTENTS

SECTIONS

PAGES

CHAPTER I

Preliminary

Short title, commencement and application .

Definitions

CHAPTER II

The International Airports Authority of India

Constitution and incorporation of the Authority

Disqualification for office of member

Term of office and conditions of service of members

Vacation of office of member

Eligibility of member for re-appointment

Meetings

Vacancy in the Authority not to invalidate proceedings

10.

Appointment of officers and other employees of the Authority

11.

Authority to act on business principles

CHAPTER III

Property and Contracts

12.

Transfer of assets and liabilities of Central Government to the Authority

13.

Compulsory acquisition of land for the Authority

14.

Contracts by the Authority .

15.

Mode of executing contracts on behalf of the Authority

CHAPTER IV

Functions of the Authority

16.

Functions of the Authority

THE INTERNATIONAL AIRPORTS AUTHORITY ACT, 1971

CHAP. IV

SECTIONS

PAGES

CHAPTER V

Finance, Accounts and Audit

17.

Power of the Authority to charge fees, rent, etc. .

18.

Additional capital and frants to the Authority by the Central Government

19.

Fund of the Authority

20.

Allocation of surplus funds

21.

Submission of programme of activities and financial estimates

22.

Investment of funds

23.

Borrowing powers of the Authority

24.

Accounts and audit .

CHAPTER VI

Miscellaneous

25.

Submission of annual reports of Parliament .

26.

Delegation

27.

Authentication of orders and other instruments of the Authority

28.

Officers and employees of the Authoruity to be public servants

29.

Protection of action taken under the Act

30.

Custody and disposal of lost property

31.

Provisions relating to income-tax

32.

Power of the Authority to undertake certain works .

33.

Power of Central Government to temporarily divest the Authority

of the management of any airport

34.

Power of Central Government to supersede the Authority

35.

Power of Central Government to issue directions

36.

Power of Central Government to make rules

37.

Power of the Authority to make regulations .

38.

Supplemental provisions respecting regulations

39.

Penalty for breach of certain regulations

40.

Power to remove difficulties

41.

Amendment of Act 22 of 1934

THE INTERNATIONAL AIRPORTS AUTHORITY ACT, 1971

CHAP. IV

CHAPTER IV

THE INTERNATIONAL AIRPORTS AUTHORITY ACT 1971

(43 OF 1971)

(December 8, 1971)

An Act to provide for the constitution of an

in clause (2) of section 2 of the Aircraft

authority for the management of certain

Act, 1934 and to which this Act applies

aerodromes whereat international air transport

or is made applicable;

services are operated or are intended to be

(b) “airstrip” means an area used or intended

operated and for matters connected therewith.

to be used for the landing and take-off of

Be it enacted by Parliament in the Twenty-

aircrafts with short take-off and landing

second Year of the Republic of India as follows

characteristics and includes all buildings

and structures thereon or appertaining

thereto;

CHAPTER I

(c)

“Authority” means the International

PRELIMINARY

Airports Authority of India constituted

1. Short title, commencement and

under

section 3;

application -(1) This Act may be called the

(d) “Chairman” means the Chairman of the

International Airports Authority Act, 1971.

Authority;

(2) It shall come into force on such date as

(e)

“heliport “ means an area, either at ground

the Central Government may, by notification in

level or elevated on a structure, used or

the Official Gazette, appoint.

intended to be used for the landing and

(3) It applies, in the first instance, to the

takeoff of helicopters and includes an

aerodromes of Bombay (Santa Cruz), Calcutta

area for parking helicopters and all

(Dum Dum), Delhi (Palam) and Madras

buildings and structures thereon or

(Meenambakkam) and the Central Government

appertaining thereto;

may, by notification in the official Gazette,

(f)

“member” means a member of the

apply the provision of this Act to any other

Authority and includes the Chairman but

aerodrome whereat international air transport

for the purposes of sections 4, 5, 6 and

services are operated or are intended to be

7 does not include the ex-officio

operated and with effect from such date as may

member referred to in clause (b) of sub-

be specified in the notification.

section (3) of section 3;

2. Definitions - In this Act, unless the

(g) “prescribed” means prescribed by rules

context otherwise requires,-

made under this Act; and

(a) “airport” means an aerodrome as defined

THE INTERNATIONAL AIRPORTS AUTHORITY ACT, 1971

CHAP. IV

(h) “regulations” means regulations made

4. Disqualification for office of

under this Act.

member- A person shall be disqualified for

being appointed as a member if he -

CHAPTER II

(a) has been convicted and sentenced to

THE INTERNATIONAL AIRPORTS

imprisonment for an offence, which, in

AUTHORITY OF INDIA

the opinion of the Central Government,

3. Constitution and incorporation of the

involves moral turpitude; or

Authority - (1) With effect from the

(b) is an undischarged insolvent; or

commencement of this Act, the Central

Government shall constitute an authority to be

called the International Airports Authority of

by a competent Court; or

India.

(d) has been removed or dismissed from the

(2) The Authority shall be a body corporate

service of the Government or a

by the name aforesaid having perpetual

Corporation owned or controlled by the

succession and a common seal, with power,

Government; or

subject to the provisions of this Act, to acquire,

(e) has, in the opinion of the Central

hold and dispose of property both movable and

Government such financial or other

immovable , and to contract and shall by the said

interest in the Authority as is likely to

name sue and be sued.

affect prejudicially the discharge by him

(3) The Authority shall consist of -

of his functions as a member.

(a) a Chairman to be appointed by the Central

5. Terms of office and conditions of

Government.

service of members - (1) Subject to the

provisions of section 6, every member shall

(b) the Director-General of Civil Aviation

hold office for a period of three years from the

ex-officio; and

date on which he assumes office :

Provided that the Central Government may-

thirteen members to be appointed by the

Central Government.

(a) terminate the appointment of any

whole-time member, who is not a

(4) The Chairman shall be a whole-time

servant of the Government, after giving

member and the other members referred to in

him notice for a period of not less than

clause (c) of sub-section (3) may be appointed

three months or in lieu thereof on

as whole-time or part-time members as the

payment of an amount equal to his salary

Central Government may think fit.

and allowances, if any, for a period of

(5) The names of persons appointed as

three months :

members shall be notified by the Central

(b) terminate the appointment of any part-

Government in the Official Gazette.

time member who is not a servant of the

(6) During the temporary absence of the

Government after giving him notice for

Chairman, the Central Government may appoint

such period as may be prescribed ; and

another member to act as the Chairman.

any member who is a servant of the

Government.

THE INTERNATIONAL AIRPORTS AUTHORITY ACT, 1971

CHAP. IV

(2) The other conditions of service of the

reasonable opportunity of being heard in the

members shall be such as may be prescribed.

matter.

(3) Any member may resign his office by

Eligibility

of member for

giving notice in writing for such period as may

reappointment - Any person ceasing to be a

be prescribed to the Central Government and,

member shall, unless disqualified under section

on such resignation being notified in the Official

4, be eligible for re-appointment as such.

Gazette by that Government, such member shall

8. Meetings - (1) The Authority shall

be deemed to have vacated his office.

meet at such times and places and shall observe

(4) A casual vacancy caused by the

such rules of procedure in regard to the

resignation of a member under sub-section (3)

transaction of business at its meetings (including

or otherwise may be filled by fresh appointment

the quorum at meetings) as may be provided by

and the person so appointed shall hold office

regulations.

for the remaining period for which the member

(2) The Chairman, or, if for any reason he is

in whose place he is appointed would have held

unable to attend any meeting , any other member

office.

chosen by the members present at the meetings,

6. Vacation of office of member - The

shall preside at the meeting.

Central Government shall remove a member if

(3) All questions which come up before any

he -

meeting of the Authority shall be decided by a

(a) becomes subject to any of the dis-

majority of the votes of the members present

qualifications mentioned in section 4:

and voting and in the event of an equality of

votes, the Chairman, or in his absence, the

Provided that no member shall be

person presiding, shall have and exercise a

removed on the ground that he has

second or casting vote.

become subject to the disqualification

mentioned in clause (e) of that

9. Vacancy in the Authority not to

section, unless he has been given a

invalidate proceedings

- No act or

reasonable opportunity of being heard

proceeding of the Authority shall be deemed to

in the matter; or

be invalid by reason merely of any vacancy in,

or any defect in the constitution of, the

(b) refuses to act or becomes incapable of

Authority.

acting; or

10. Appointment of officers and other

employees of the Authority - (1) For the

from the Authority, absent from

purpose of enabling it efficiently to discharge

three consecutive meetings of the

it functions under this Act, the Authority shall,

Authority; or

subject to the provisions of section 12 and to

(d) in the opinion of the Central Government

such rules as may be prescribed in this behalf,

has so abused his position as to render

appoint (whether on deputation or otherwise)

his continuance in office detrimentral

such number of officers and other employees

to the public interest :

as it may consider necessary :

Provided that no member shall be removed

Provided that the appointment of such

under this clause unless he has been given a

category of officer as may be specified after

THE INTERNATIONAL AIRPORTS AUTHORITY ACT, 1971

CHAP. IV

consultation with the Chairman in such rules,

Government shall, subject to such terms

shall be subject to the approval of the Central

and conditions as may be determined by

Government.

the Central Government, be treated as

the capital provided by the Central

(2) Subject to the provisions of section 12,

Government to the Authority;

every officer or other employee appointed by

the Authority shall be subject to such conditions

(d)

all sums of money due to the Central

of service and shall be entitled to such

Government in relation to the airport

remunerations as may be determined by

immediately before such day shall be

regulations.

deemed to be due to the Authority;

11. Authority to act on business

(e)

all suits and other legal proceedings

principles - In the discharge of its functions

instituted or which could have been

under this Act, the Authority shall act, so far as

instituted by or against the Central

may be, on business principles.

Government immediately before such

day for any matter in relation to the

CHAPTER III

airport may be continued or instituted

PROPERTY AND CONTRACT

by or against the Authority;

12. Transfer of assets and liabilities of

(f)

every employee holding any office under

Central Government to the Authority - (1)

the Central Government immediately

Save as otherwise provided in sub-section (2),

before such day solely or mainly for or

as from such date as the Central Government

in connection with such affairs of the

may appoint by notification in the Official

airport as are relevant to the functions of

Gazette in relation to any airport, -

the Authority under this Act shall be

treated as on deputation with the

(a) all properties and other assets vested in

Authority but shall hold his office in the

the Central Government for the purpose

Authority by the same tenure and upon

of the airport and administered by the

the same terms and conditions of service

Director- General of Civil Aviation

as respects, remuneration, leave,

immediately before such day shall vest

provident fund, retirement or other

in the Authority;

terminal benefits as he would have held

(b) all debts, obligations and liabilities

such office, if the Authority had not

incurred, all contracts entered into and

been constituted and shall continue to

all matters and things engaged to be done

do so until the Central Government,

by, with, or for the Central Government

either on its own motion or at the request

immediately before such day for or in

of the Authority, recalls such employee

connection with the purposes of the

to its service or until the Authority, with

airport shall be deemed to have been

the concurrence of the Central

incurred, entered into and engaged to be

Government, duly absorbs such

done by, with, or for the Authority;

employee in its regular service, whichever

is earlier :

by the Central Government for or in

Provided that during the period of

connection with the purposes of the

deputation of any such employee with

airport up to such day and declared to be

the Authority, the Authority shall pay to

capital expenditure by the Central

the Central Government, in respect of

THE INTERNATIONAL AIRPORTS AUTHORITY ACT, 1971

CHAP. IV

every such employee, such contribution

instituted by or against the Authority;

towards his leave salary, pension and

(e) every employee holding any office under

gratuity as the Central Government may,

the Central Government immediately

by order, determine:

before such day solely or mainly for or

Provided further that any such employee,

in connection with air navigation

who, has in respect of the proposal of

services shall be treated as on deputation

the Authority to absorb him in its regular

with the Authority but shall hold his

service, intimated within such time as

office in the Authority by the same tenure

may be specified in this behalf by the

and upon the same terms and conditions

Authority his intention of not becoming

of service as respects remuneration,

a regular employee of the Authority,

leave, provident fund, retirement or other

shall not be absorbed by the Authority in

terminal benefits as he would have held

its regular service.

such office if the Authority had not been

constituted and shall continue to do so

(2) As from the date determined by the

until the Central Government, either on

Central Government under the proviso to sub-

its own motion or at the request of the

section (2) of section 16, -

Authority, recalls such employee to its

(a)

the equipment and appliances relating to

service or until the Authority, with the

air navigation services and the buildings

concurrence of the Central Government,

used exclusively for such services

duly obsorbs such employee in its regular

immediately before such day shall vest

service, whichever is earlier :

in Authority;

Provided that during the period of

(b) all debts, obligations and liabilities

deputation of any such employee with

incurred, all contracts entered into and

the Authority, the Authority shall pay to

all matters and things engaged to be

the Central Government in respect of

done by, with, or for the Central

every such employee, such contribution

Government immediately before such

towards his leave salary, pension and

day for or in connection with air

gratuity as the Central Government may,

navigation services shall be deemed to

by order determine:

have been incurred, entered into and

Provided further that any such employee,

engaged to be done by, with, or for the

who has, in respect of the proposal of

Authority ;

the Authority to absorb him in its regular

(c)

all sums of money due to the Central

service intimated within such time as

Government for or in connection with

may be specified in this behalf by the

air navigation services immediately

Authority his intention of not becoming

before such day shall be deemed to be

a regular employee of the Authority,

due to the Authority;

shall not be absorbed by the Authority in

its regular service.

(d) all suits and other legal proceedings

instituted or which could have been

(3) If any dispute or doubt arises as to which

instituted by or against the Central

of the properties, right or liabilities of the

Government immediately before such

Central Government have been transferred to

day for any matter in connection with air

the Authority or as to which of the employees

navigation services may be continued or

serving under the Central Government are to be

THE INTERNATIONAL AIRPORTS AUTHORITY ACT, 1971

CHAP. IV

treated as on deputation with the Authority,

of the Authority as may be generally or specially

under this section such dispute or doubt shall

empowered in this behalf by the Authority and

be decided by the Central Government in

such contracts or class of contracts as may be

consultation with the Authority and the decision

specified in the regulations shall be sealed with

of the Central Government thereon shall be

the common seal of the Authority:

final.

Provided that no contract exceeding such

(4) Notwithstanding anything contained in

value or amount as the Central Government

the Industrial Disputes Act, 1947, (14 of 1947)

may, from time to time, by order, fix in this

or in any other law for the time being in force,

behalf shall be made unless it has been

the absorption of any employee by the Authority

previously approved by the Authority :

in its regular service under this section shall

Provided further that no contract for the

not entitle such employee to any compensation

acquisition or sale of immovable property or

under that Act or other law and no such claim

for the lease of any such property for a term

shall be entertained by any court tribunal or

exceeding thirty years and no other contract

other authority.

exceeding thirty years and no other contract

(5) In this section and in section 16, the

exceeding such value or amount as the Central

expression “air navigation services”, in relation

Government may, from time to time, by order,

to any airport, means air traffic services

fix in this behalf shall be made unless it has

(including aeronautical and flight information

been previously approved by the Central

services), aeronautical communication and

Government.

navigational aids and meteorological services

(2) Subject to the provisions of sub-section

at such airport.

(1), the form and manner in which any contract

13. Compulsory acquisition of land for

shall be made under this Act shall be such as

the Authority - Any land required by the

may be prescribed by regulations.

Authority for discharging its functions under

(3) No contract which is not in accordance

this Act shall be deemed to be needed for public

with the provisions of this Act and the

purpose and such land may be acquired for the

regulations shall be binding on the Authority.

Authority under the provisions of the Land

Acquisition Act, 1894 (1 of 1894) or of any

CHAPTER IV

other corresponding law for the time being in

FUNCTIONS OF THE

force.

AUTHORITY

14. Contracts by the Authority - Subject

16. Functions of the Authority - (1)

to the provisions of section 15, the Authority

Subject to the rules, if any, made by the Central

shall be competent to enter into and perform

Government in this behalf, it shall be the

any contract necessary for the discharge of its

function of the Authority to manage the airports

functions under this Act.

efficiently.

15. Mode of executing contracts on behalf

(2) It shall be the duty of the Authority to

of the Authority - (1) Every contract shall,

provide at the airports such services and facilities

on behalf of the Authority, be made by the

as are necessary or desirable for the efficient

Chairman or such other member or such officer

operation of air transport services there at :

THE INTERNATIONAL AIRPORTS AUTHORITY ACT, 1971

CHAP. IV

Provided that the function of providing air

to the passengers travelling air;

navigation services at the airports shall continue

(k) from one or more companies under the

to be discharged by the Central Government

Companies Act, 1956 (1 of 1956) or

until such date as that Government may, by

under any other law relating to companies

order, determine.

to further the efficient discharge of the

(3) Without prejudice to the generality of

functions imposed on it by this Act; and

the provisions contained in sub-section (1) and

(l) take all such steps as may be necessary

(2), the Authority may -

or convenient for, or may be incidental

(a)

plan, develop, construct and maintain

to the exercise of any power or the

runways, taxiways, aprons and terminal

discharge of any function conferred or

and ancillary buildings at the airports;

imposed on it by this Act.

(b) construct residential buildings and

(4) In the discharge of its functions under

create townships for its employees;

this section, the Authority shall have due regard

to the development of air transport service and

(c)

establish and maintain hotels, restaurants

to the efficiency, economy and safety of such

and rest-rooms at or near the airports;

service.

(d) establish warehouses at the airports for

(5) Nothing contained in this section shall

the storage or processing of goods;

be construed as -

(e)

arrange for postal, money exchange,

(a) imposing an obligation on the Authority

insurance and telephone facilities for

to discharge any function or duty under

the use of passengers and other persons

this section with respect to any airport

at the airports;

in relation to which a notification has

(f)

make appropriate arrangements for watch

not been issued under sub-section (1) of

and ward at the airports;

section 12;

(g) regulate and control the plying of

(b) authorising the disregard by the Authority

vehicles, and the entry and exit of

of any law for the time being in force; or

passengers and visitors, in the airports

with due regard to the protocol functions

proceeding in respect of a duty or liability

of the Government of India;

to which the Authority or its officers or

(h) develop and provide consultancy services

other employees would not otherwise

in India and abroad in relation to planning

be subject.

and development of airports or any

CHAPTER V

facilities thereat;

FINANCE, ACCOUNTS AND AUDIT

(i)

establish and manage heliports and

airstrips;

17. Power of the Authority to charge

fees, rent, etc. - The Authority may, -

(j)

provide such transport facilities as are,

in the opinion of the Authority, necessary

THE INTERNATIONAL AIRPORTS AUTHORITY ACT, 1971

CHAP. IV

(i) with the previous approval of the Central

(b) pay to the Authority, on such terms and

Government, charge fees or rent, -

conditions as the Central Government

may determine, by way of loans or grants

(a) for the landing, housing or parking

such sums of money as the Government

of aircraft or for any other service

may consider necessary for the efficient

or facility offered in connection

discharge by the Authority of its

with aircraft operations, at any

functions under this Act.

airport, heliport or air-strip.

19. Fund of the Authority - (1) The

Explanation. - In this sub-clause

Authority shall have its own fund and all receipts

“aircraft” does not include an

of the Authority shall be credited thereto and

aircraft belonging to the Indian

all payments of the Authority shall be made

Defence Services and “aircraft

therefrom.

operations” do not include

operations of any aircraft belonging

(2) The Authority shall have power, subject

to the said Services;

to the provisions of this Act, to spend such

sums as it thinks fit to cover all administrative

(b) for the amenities given to the

expenses of the Authority and on objects or for

passengers and visitors at any

purposes authorised by this Act and such sums

airport, heliport or airstrip;

shall be treated as expenditure out of the fund

of the Authority.

of facilitates and other services

(3) All money standing at the credit of the

provided by the Authority at any

Authority which cannot immediately be applied

airport, heliport or airstrip;

as provided in subs-section (2) shall be

(ii) with due regard to the instructions that

deposited in the State Bank of India or in such

the Central Government may give to the

scheduled bank or banks and subject to such

Authority, from time to time, charge

conditions as may from time to time be

fees or rent from persons who are given

specified by the Central Government.

by the Authority any facility for carrying

Explanation. - In this sub-section

on any trade or business at any airport.

“scheduled bank” has the same meaning as in

18. Additional capital and grants to the

clause (e) of section 2 of the Reserve Bank of

Authority by the Central Government -

India Act, 1934 (2 of 1934).

The Central Government may, after due

20. Allocation of surplus funds - (1) The

appropriation made by Parliament by law in this

Authority may, from time to time, set apart

behalf, -

such amounts as it thinks fit as a reserve fund or

(a) provided any capital, over and above the

funds for the purpose of expanding existing

capital provided under clause (c) of sub-

facilities or services or creating new facilities

section (1) of section 12, that may be

or services at any airport or for the purpose of

required by the Authority for the

providing against any temporary decrease of

discharge of its functions under this Act

revenue or increase of expenditure from

or for any purpose connected therewith

transient causes or for purposes of replacement

on such terms and conditions as that

or for meeting expenditure arising from loss or

Government may determine;

damage from fire, cyclone, air-crash or other

THE INTERNATIONAL AIRPORTS AUTHORITY ACT, 1971

CHAP. IV

accident or for meeting any liability arising out

fund) in the securities of the Central Government

of any act or omission in the discharge of its

or in such other manner as may be prescribed.

functions under this Act :

23. Borrowing powers of the Authority-

Provided that without prejudice to the right

(1) The Authority may, with the consent of the

of the Authority to establish specific reserves

Central Government or in accordance with the

for one or more specific purposes, the Authority

terms of any general or special authority given

shall also have the power to establish a general

to it by the Central Government, borrow money

reserve :

from any source by the issue of bonds,

debentures or such other instruments as its may

Provided further that the sums set apart

deem fit for discharging all or any of its

annually in respect of each or any of the specific

functions under this Act.

and general reserves and the aggregate at any

time of such sums shall not exceed such limits

(2) The Central Government may guarantee

as may, from time to time, be fixed in that

in such manner as it thinks fit the repayment of

behalf by the Central Government.

the principal and the payment of interest thereon

with respect to the

loans borrowed by the

(2) After making provision for such reserve

Authority under sub-section (1).

fund or funds and for bad and doubtful debts,

depreciation in assets and all other matters

(3) Subject to such limits as the Central

which are usually provided for by companies

Government may, from time to time, lay down,

registered and incorporated under the

the Authority may borrow temporarily by way

Companies Act, 1956,(1 of 1956) the Authority

of overdraft or otherwise such amounts as it

shall pay the balance of its annual net profits to

may require for discharging its functions under

the Central Government.

this Act.

21. Submission of programme of

24. Accounts and audit - (1) The Authority

activities and financial estimates - (1) The

shall maintain proper accounts and other relevant

Authority shall, before the commencement of

records and prepare an annual statement of

each financial year, prepare a statement of the

accounts including the profit and loss account

programme of its activities during the

and the balance-sheet in such form as may be

forthcoming financial year as well as financial

prescribed by the Central Government in

estimate in respects thereof.

consultation with the Comptroller and Auditor-

General of India.

(2) The statement prepared under sub-section

(1) shall, not less than three months before the

(2) The accounts of the Authority shall be

commencement of each financial year, be

audited annually be the Comptroller and Auditor-

submitted for approval to the Central

General of India and any expenditure incurred

Government.

by him in connection with such audit shall be

payable by the authority to the Comptroller and

(3) The statement and the financial estimates

Auditor- General of India.

of the Authority may, with the approval of the

Central Government, be revised by the Authority.

(3) The Comptroller and Auditor- General

of India and any person appointed by him in

22. Investment of funds - The Authority

connection with the audit of the accounts of the

may invest its funds (including any reserve

THE INTERNATIONAL AIRPORTS AUTHORITY ACT, 1971

CHAP. IV

Authority shall have the same rights and

specified in the order, such of its powers and

privileges and authority in connection with

functions under this Act (expect the powers

such audit as the Comptroller and Auditor-

under section 37) as its may deem necessary.

General has in connection with the audit of

27. Authentication of orders and other

Government accounts and in particular, shall

instruments of the Authority - All orders

have the right to demand the production of

and decisions of the Authority shall be

books, accounts, connected vouchers,

authenticated by the signature of the Chairman

documents and papers and inspect any of the

or any other member authorised by the Authority

offices of the Authority.

in this behalf and all other instruments executed

(4) The accounts of the Authority as certified

by the Authority shall be authenticated by the

by the Comptroller and Auditor- General of

signature of an officer of the Authority

India or any other person appointed by him in

authorised by the Authority in this behalf.

this behalf together with the audit report

28. Officers and employees of the

thereon shall be forwarded annually to the

Authority to be public servants - All officers

Central Government and that Government shall

and employees of the authority shall, when

cause the same to be laid before both Houses of

acting or purporting to act in pursuance of the

Parliament.

provisions of this Act or of any rule or regulation

CHAPTER VI

made thereunder, be deemed to be public servants

within the meaning of section 21, of the Indian

MISCELLANEOUS

Penal Code (45 of 1860).

25. Submission of annual reports to

29. Protection of action taken under the

Parliament- (1) The Authority shall, as soon

Act - No suit, prosecution or other legal

as may be after the end of each financial year,

proceeding shall lie against the Authority or

prepare and submit to the Central Government

any member or any officer or other employee

in such form as may be prescribed a report

of the Authority for anything which is in good

giving an account of its activities during that

faith done or intended to be done in pursuance

financial year and the report shall also give an

of this Act or of any rule or regulation made

account of the activities which are likely to be

thereunder or for any damage sustained by any

under taken by the Authority during the next

aircraft or vehicle in consequence of any defect

financial year.

in any of the airports or other things belonging

(2) The Central Government shall cause

to or under the control of the Authority.

such report to be laid before both Houses of

30. Custody and disposal of lost

Parliament as soon as may be after it is

property- Subject to such regulations as the

submitted.

Authority may make in this behalf, the Authority

26. Delegation - The Authority may, by

shall provide for securing the safe custody and

general or special order in writing, delegate to

restoration of any property which, while not in

the Chairman or any other member or to any

proper custody, is found on any premises

officer of the Authority, subject to such

belonging to the Authority or under its overall

conditions and limitations, if any, as may be

control or in any aircraft on any such premises.

THE INTERNATIONAL AIRPORTS AUTHORITY ACT, 1971

CHAP. IV

31. Provisions relating to income-tax -

Provided that no such power or function as

For the purposes of the Income-tax Act, 1961

may be specified by the Central Government by

(43 of 1961) or any other enactment for the

general or special order shall be exercised or

time being in force relating to income-tax or

discharged by the authorised person except

any other tax on income, profits or gains, the

with the previous sanction of the Central

Authority shall be deemed to be a company

Government.

within the meaning of the Income-tax Act,

(3) An order made under sub-section (1)

1961 (43 of 1961) and shall be liable to tax

shall, unless rescinded, be in operation for a

accordingly on its income, profits and gains.

period of six months from the date on which the

32. Power of the Authority to undertake

management of the airport is entrusted to the

certain works - The Authority may undertake

authorised person :

to carry out on behalf of any person any works

Provided that the Central Government may

or services or any class of works or services on

extend such period for a further period not

such terms and conditions as may be agreed

exceeding eighteen months.

upon between the Authority and the person

concerned.

(4) During the operation of an order made

under sub-section (1), it shall be competent for

33. Power of Central Government to

the Central Government to issue, from time to

temporarily divest the Authority of the

time, such directions to the Authority as are

management of any airport- (1) If at any

necessary to enable the authorised person to

time the Central Government is of opinion that

exercise the powers and discharge the functions

in the public interest it is necessary or expedient

of the Authority under this Act in relation to the

so to do, it may, by order, direct the Authority

airport, the management of which has been

to entrust the management of any airport with

entrusted to him and in particular to transfer

effect from such date and to such persons as

any sum of money from the fund of the Authority

may be specified in the order and the Authority

to the authorised person for the management of

shall be bound to comply with such direction :

the airport of the airport and every such direction

Provided that before an order is made under

shall be complied with by the Authority.

this sub-section the Authority shall be given a

(5) On the cessor of operation of any order

reasonable opportunity of being heard in the

made under sub-section (1) in relation to any

matter.

airport, the authorised person shall cease to

(2) Where the management of any airport is

exercise and perform the powers and functions

entrusted to any person specified under sub-

of the Authority under this Act in relation to

section (1) (hereafter in this section referred

such airport and the Authority shall continue to

to as the authorised person), the Authority shall

exercise and perform such powers and functions

cease to exercise and discharge all its powers

in accordance with the previsions of this Act.

and functions under this Act in relation to such

(6) On the cesser of operation of any

airport and such powers and functions shall be

order made under sub-section (1) in relation to

exercised and discharged by the authorised

any airport, the authorised person shall

person in accordance with the instructions, if

hand over to the Authority any property

any, which the Central Government may give to

(including any sum of money or other asset)

the authorised person from time to time:

THE INTERNATIONAL AIRPORTS AUTHORITY ACT, 1971

CHAP. IV

remaining with him in connection with the

(2) Upon the publication of a notification

management of such airport.

under sub-section (1) superseding, vacate their

officers as such;

(7) Anything done or any action taken

lawfully by the authorised person in relation to

(a) all the members shall, as from the date of

any airport during the period of operation of an

supersession, vacate their offices as such;

order made under sub-section (1) shall be

(b) all the powers, functions and duties

deemed to have been done or taken by the

which may, by or under the provisions of

Authority and shall be binding on the Authority.

this Act, be exercised or discharged by

34. Power of Central Government to

or on behalf of the Authority, shall, until

supersede the Authority - (1) If at any time,

the Authority is re-constituted under

the Central Government is of opinion -

sub-section (3), be exercised and

discharged by such person or persons as

(a)

that on account of a grave emergency,

the central Government may direct;

the Authority is unable to discharge the

functions and duties imposed on it by or

under the provisions of this Act; or

Authority shall, until the Authority is

reconstituted under sub-section (3), vest

(b)

that the Authority has persistently made

in the Central Government.

default in complying with any direction

issued by the central Government under

(3) On the expiration of the period of

this Act or in the discharge of the

supersession specified in the notification issued

functions and duties imposed on it by or

under sub-section (1), the Central Government

under the provisions of this Act and as a

may -

result of which default the financial

(a) extend the period of supersession for

position of the Authority or the

such further term, not exceeding six

administration of any airport has

months, as it may consider necessary; or

deteriorated; or

(b) re-constitute the Authority by fresh

(c)

that circumstances exit which render it

appointment and in such case any persons

necessary in the public interest so to do,

who vacated their offices under clause

the Central Government may, by

(a) of sub-section

(2) shall not be

notification in the Official Gazette,

deemed disqualified for appointment :

supersede the Authority for such period,

not exceeding six months, as may be

Provided that the Central Government may,

specified in the notification :

at any time before the expiration of the period

of supersession, whether as originally specified

Provided that before issuing a

under sub-section (1) or as extended under this

notification under this sub-section for

sub-section, take action under clause (b) of

the reasons mentioned in clause (b), the

this sub-section.

Central Government shall give a

reasonable opportunity to the Authority

(4) The Central Government shall cause a

to show cause why it should not be

notification issued under sub-section (1) and a

superseded and shall consider the

full report of any action taken under this section

explanations and objections, if any, of

and the circumstances leading to such action to

the Authority.

be laid before both Houses of Parliament at the

earliest opportunity.

THE INTERNATIONAL AIRPORTS AUTHORITY ACT, 1971

CHAP. IV

35. Power of Central Government to

and other employees under sub-section

issue directions - (1) Without prejudice to

(1) of section 10;

the foregoing provisions of this Act, the

(d) the terms and conditions subject to

Authority shall, in the discharge of its functions

which the non-recurring expenditure

and duties under this Act, be bound by such

incurred by the Central Government for

directions on questions of policy as the Central

or in connection with the purposes of

Government may give in writing to it from time

any airport shall be treated as the capital

to time :

provided by the Central Government to

Provided that the Authority shall, as far as

the Authority under clause (c) of sub-

practicable, be given opportunity to express its

section (1) of section 12;

views before any direction is given under this

(e) the manner in which the Authority may

sub-section.

invest its funds under section 22;

(2) The decision of the Central Government

(f) the form in which the Authority shall

whether a question is one of policy or not shall

prepare the annual statement of accounts

be final.

including the profit and loss account and

36. Power of Central Government to

the balance-sheet under section 24; and

make rules- (1) The Central Government

(g) any other matter which is to be or may be

may, by notification in the Official Gazette,

prescribed.

make rules for carrying out the purposes of this

Act.

(2A) The power to make rules conferredby

clauses (a) and (c) of sub-section (2) shall

(2) In particular and without prejudice to the

include the power to give retrospective effect,

generality of the foregoing power, such rules

from a date not earlier than the date of

may provide for-

commencement of this Act, to such rules or any

(a) the conditions of service of the Chairman

of them but no retrospective effect shall be

and other members under section 5

given to any rule so as to prejudicially affect the

including the salaries payable to the

interest of any person to whom such rule may

Chairman and to the members who are

be applicable.

required to render whole-time service

[Inserted by s.2 of Act 72 of 1985]

and the fees and allowances payable to

(3) Every rule made under this sections

the members who are required to render

shall be laid as soon as may be after it is made

part-time service;

before each House of Parliament while it is in

(b) the period of notice required to terminate

session for a total period of thirty days which

the appointment of any member, who is

may be comprised in one session or in two or

required to render part-time service and

more successive sessions, and if before the

who in not a servant of the Government,

expiry of the session immidiately following in

under section 5, and the period of notice

which it is so laid or the session immediately

that may be given to the Central

following the session or the sucessive sessions

Government by a member before he

aforesaid both Houses agree in making any

resigns his office, under that section;

modification in the rule, or both Houses agree

that the rule should not be made, the rule shall

thereafter have effect only in such modified

which the Authority may appoint officers

THE INTERNATIONAL AIRPORTS AUTHORITY ACT, 1971

CHAP. IV

form or be of no effect, as the case may be; so

(f)

the disposal of any lost property in cases

however, that any such modification or

where such property is not restored under

annulment shall be without prejudice to the

section 30;

validity of anything previously done under that

(g)

securing the safety of aircraft, vehicles

rule.

and persons using the airport and

[Subsituted by s.2 of Act 72 of 1985]

preventing danger to the public arising

from the use and operations of aircraft

37. Power of the Authority to make

in the airport;

regulations - (1) The Authority may make

regulations not inconsistent with this Act and

(h)

preventing obstruction within the airport

the rules made there-under to provide for all

for its normal functioning;

matters for which provision is necessary or

(i)

prohibiting the parking or waiting of any

expedient for the purpose of giving effect to

vehicle or carriage within the airport

the provisions of this Act.

except at places specified by the

(2) Without prejudice to the generality of

Authority;

the foregoing power, such regulations may

(j)

prohibiting or restricting access to any

provide for -

part of the airport;

(a) the times and places of the meeting of

(k)

preserving order within the airport and

the Authority and the procedure to be

preventing damage to property therein ;

followed for the transaction of business

at such meetings under sub-section (1)

(l)

regulating or restricting advertising

of section 8;

within the airport;

(b) the conditions of service and the

(m) requiring any person, if so directed by an

remuneration of officers and other

officer appointed by the Authority in

employees appointed by the authority;

this behalf, to leave the airport or any

particular part of the airport; and

are to be sealed with the common seal

(n)

generally for the efficient and proper

and of the Authority and the form and

management of the airport.

manner in which a contract may be made

(3)The power to make regulations conferred

by the Authority;

by clause (b) of sub-section (2) shall include

(d) the storage or processing of goods in

the power to give retrospective effect, from a

any warehouse established by the

date not earlier than the date of commencement

authority under clause (d) of sub-section

of this Act, to such regulations or any of them

(3) of section (16) and the charging of

but no retrospective effect shall be given to any

fees for such storage or processing;

regulation so as to prejudicially affect the

interest of any person to whom such regulation

(e) the custody and restoration of lost

may be applicable.

property and the terms and conditions

under which lost property may be restored

[Inserted by s.2 of Act 72 of 1985]

to the person entitled thereto, under

section 30;

THE INTERNATIONAL AIRPORTS AUTHORITY ACT, 1971

CHAP. IV

(4) The Central Government shall cause every

twenty rupees for every day during which such

regulation made under this section to be laid, as

contravention continues after conviction for

soon as may be after it is made, before each

the first such contravention.

House of Parliament, while it is in session, for

40. Power to remove difficulties - (1) If

a total period of thirty days which may be

any difficulty arises in giving effect to the

comprised in one session or in two or more

provisions of this Act, the Central Government

successive sessions aforesaid, both Houses

may, by general or special order published in

agree in making any modification in the

the Official Gazette, make such provisions not

regulation, or both Houses agree that the

inconsistent with the provisions of this Act as

regulation should not be made, the regulation

appear to it to be necessary or expedient for the

shall thereafter have effect only in such modified

removal of the difficulty :

form or be of no effect, as the case may be; so

however, that any such modification or

Provided that no such order shall be made

annulment shall be without prejudice to the

after the expiration of one year from the

validity of anything previously done under that

commencement of this Act.

regulation.

(2) Every order made under sub-section (1)

[Inserted by s.2 of Act 72 of 1985]

shall be laid, as soon as may be after it is made,

before each House of Parliament while it is in

38. Supplemental provisions respecting

session for a total period of thirty days which

regulations - (1) Any regulation which may

may be comprised in one session or in two

be made by the Authority under this Act may be

successive sessions and if before the expiry of

made by the Central Government by notification

the session in which it is so laid or the session

in the official Gazette within one year of the

immediately following both Houses agree in

constitution of the Authority and any regulation

making any modification in the order or both

so made may be altered or rescinded by the

Houses agree that the order should not be made,

Authority by means of a regulation made by it

the order shall thereafter have effect only in

under this Act.

such modified form or be of no effect, as the

(2) No regulation made by the Authority

case may be; so, however, that any such

under this Act shall have effect until it has been

modification or annulment shall be without

approved by the Central Government and

prejudice to the validity of anything previously

published in Official Gazette.

done under that order.

39. Penalty for breach of certain

41. Amendment of Act 22 of 1934 - In

regulations - Any regulation made under any

sub-section (2) of section 5 of the Aircraft Act,

of the clauses (g) to (m) inclusive of sub-

1934, for clause (b), the following clause shall

section (2) of section 37 may provide that a

be substituted, namely :-

contravention thereof shall be punishable with

“(b) the licensing inspection and

fine which may extend to five hundred rupees

regulation of aerodromes, the conditions

and in the case of a continuing contravention

under which aerodromes may be

with an additional fine which may extend to

maintained, the prohibition or regulation

THE NATIONAL AIRPORTS AUTHORITY OF INDIA ACT, 1985

Chap. V

CHAPTER V

THE NATIONAL AIRPORTS AUTHORITY ACT,

1985

TABLE OF CONTENTS

SECTIONS

PAGES

CHAPTER I

Preliminary

Short title, commencement and application

Definitions

CHAPTER II

The National Airports Authority

Constitution and incorporation of the Authority

Disqualification for office of member

Term of office and conditions of service of members

Vacation of office of member

Eligibility of member for re-appointment

Meetings

Vacancies, etc., not to invalidate proceedings of the Authority

10.

Appointment of officers and other employees of the Authority

11.

Authority to act on business principles

CHAPTER III

Functions of the Authority

12.

Functions of the Authority

CHAPTER IV

Property and Contracts

13.

Transfer of assets and liabilities of Central Government to the Authority

14.

Compulsory acquisition of land for the Authority

15.

Contracts by the Authority

16.

Mode of executing contracts on behalf of the Authority

THE NATIONAL AIRPORTS AUTHORITY OF INDIA ACT, 1985

Chap. V

SECTIONS

PAGES

CHAPTER V

Finance, Accounts and Audit

17.

Power of the Authority to charge fees, rent, etc.

18.

Additional capital and frants to the Authority by the Central Government

19.

Fund of the Authority

20.

Allocation of surplus funds

21.

Submission of programme of activities and financial estimates

22.

Investment of funds

23.

Borrowing powers of the Authority

24.

Accounts and audit

CHAPTER VI

Miscellaneous

25.

Submission of annual report

26.

Delegation

27.

Authentication of orders and other instruments of the Authority

28.

Officers and employees of the Authoruity to be public servants

29.

Protection of action taken in good faith

30.

Custody and disposal of lost property

31.

Provisions relating to income-tax

32.

Power of the Authority to undertake certain works

33.

Power to issue directions

34.

Power of Central Government to temporarily divest the Authority of the

management of any aerodrome

35.

Power of Central Government to supersede the Authority

36.

Power of Central Government to issue directions

37.

Power to make rules

38.

Power to make regulation

39.

Supplementary provisions respecting regulations

40.

Rules and Regulations to be laid before Parliament .

41.

Power to remove difficulties

42.

Amendment of Act 22 of 1934 .

THE NATIONAL AIRPORTS AUTHORITY ACT, 1985

CHAP. V

CHAPTER V

THE NATIONAL AIRPORTS AUTHORITY ACT,

1985

(64 OF 1985)

(December 7, 1985)

A bill to provide for the establishment of an

Authority for the management of aerodromes

2. Definitions- In this Act, unless the

and civil enclaves whereat domestic air transport

context otherwise requires, -

services are operated or are intended to be

operated and of all communication stations and

(a)

“air traffic service” includes flight

for matters connected therewith:

information service, alerting service, air

traffic advisory service, air traffic control

Be it enacted by Parliament in the Thirty-

service, area control service, approach

sixth year of the Republic of India as follows:-

control service and aerodrome control

CHAPTER I

service;

PRELIMINARY

(b)

“air transport service” means any service

, for any kind of remuneration,

1. Short title, commencement and

whatsoever, for the transport by air of

application- (1) This Act may be called the

persons, mail or any other thing, animate

National Airports Authority Act, 1985.

or inanimate, whether such service

(2) It shall come into force on such date as

relates to a single flight or series of

the Central Government may, by notification in

flights ;

the official Gazette, appoint.

(c)

“Authority” means the National Airports

(3) it applies to -

Authority constituted under section 3;

(a) all aerodromes whereat domestic air

(d)

“civil enclave” means the area, if any,

transport services are operated or are

allotted at an aerodrome belonging to

intended to be operated, other than -

any armed force of the Union, for use by

persons availing of any air transport

(i) aerodrom es to w hich the

services from such aerodrome or for the

International Airports Authority Act,

handling of baggage or cargo by such

1971 applies; and

service, and includes land comprising of

(ii) aerodromes and airfields belonging

any building and structure on such area;

to, or subject to the control of, any

(e)

“heliport” means an area, either at ground

armed force of the Union;

level or elevated on a structure, used or

(b) all civil enclaves; and

intended to be used for the landing and

take off of helicopters and includes any

THE NATIONAL AIRPORTS AUTHORITY ACT, 1985

CHAP. V

area for parking helicopters and all

buildings and structures thereon or

fourteen members to be appointed by

appertaining thereto;

the Central Government.

(f) “member” means a member of the

(4) The Chairman shall be a whole- time

Authority and includes the Chairman,

member and other members referred to in clause

but does not include, for the purposes of

sections 4, 5, 6 and 7, an ex-officio

whole time or part-time members as the Central

member referred to in clause (b) of sub-

Government may think fit.

section (3) of section 3;

(5) The Chairman and the members referred

(g) “prescribed” means prescribed by rules

to in clause (c) of sub-section (3) shall be

made under this Act;

chosen from among persons who have special

knowledge and experience in air transport or

(h) “regulations “ means regulations made

other transport services, industry commercial

under this Act; and

or financial matters or administration and from

(i) words and expressions used herein and

among persons who are capable or representing

not defined but defined in the Aircraft

organizations of workers and consumers.

Act, 1934, shall have the meanings,

4. Disqualification for office of member-

respectively, assigned to them in that

A person shall be disqualified for being

Act.

appointed as a member if he-

CHAPTER II

(a) has been convicted and sentenced to

THE NATIONAL AIRPORTS

imprisonment for an offence, which, in

AUTHORITY

the opinion of the Central Government,

involves moral turpitude; or

3. Constitution and incorporation of the

Authority - (1) With effect from the

(b) is an undischarges insolvent; or

commencement of this Act, the Central

Government shall constitute an authority to be

by a competent court; or

called the National Airports Authority.

(d) has been removed or dismised from the

(2) The Authority shall be a body corporate

service of the Government or a body

by the name aforesaid having perpetual

corporate owned or controlled by the

succession and a common seal, with power,

Government; or

subject to the provisions of this Act, to acquire,

hold and dispose of property both movable and

(e) has in the opinion of the Central

immovable, and to contract and shall by the said

Government such financial or other

name sue and be sued.

interest in the Authority as is likely to

affect prejudicially the discharge by him

(3) The Authority shall consist of -

of his functions as a member.

(a) a Chairman to be appointed by the Central

5. Term of office and conditions of service

Government;

of members - (1) Subject to the provisions of

(b) the Director-General of Civil Aviation,

section 6, every member (other than the ex

ex-offcio; and

THE NATIONAL AIRPORTS AUTHORITY ACT, 1985

CHAP. V

officio member) shall hold office for a period

become subject to the disqualification

of three years from the date on which he assumes

mentioned in clause (e) of that section,

office:

unless he has been given a reasonable

opportunity of being heard in the matter

Provided that the Central Government may-

; or

(a) terminate the appointment of any whole-

(b) refuses to act or becomes incapable of

time member, who is not a servant of the

acting; or

Government, after giving him notice for

a period of not less than three months or

in lieu thereof, on payment of an amount

from the Authority, absent from three

equal to his salary and allowances, if

consecutive meetings of the Authority ;

any, for a period of three months;

(b) terminate the appointment of any part-

(d) in the opinion of the Central

time member who is not a servant of the

Government, has so abused his position

Government after giving him notice for

as to render his continuance in office

such period as may be prescribed; and

detrimental to the public interest:

Provided that no member shall be removed

any member who is a servant of the

under this clause unless he has been given a

Government.

reasonable opportunity of being heard in the

matter.

(2) The other conditions of service of the

members shall be such as may be prescribed.

Eligibility

of member for

reappointment - Any person ceasing to be a

(3) Any member may resign his office by

member shall, unless disqualified under section

giving notice in writing for such period as may

4, be eligible for reappointment as such.

be prescribed, to the Central Government and,

on such resignation being notified in the Official

8. Meetings - (1) The Authority shall

Gazette by that Government, such member shall

meet at such times and places, and shall observe

be deemed to have vacated his office.

such rules of procedure in regard to the

transaction of the business at its meetings

(4) A casual vacancy caused by the

(including the quorum at such meetings) as may

resignation of a member under sub-section (3)

be provided by regulations.

or otherwise may be filled by fresh appointment

and the person so appointed shall hold office

(2) The Chairman, or, if for any reason he is

for the remaining period for which the member

unable to attend any meeting of the authority

in whose place he is appointed would have held

any other member chosen by the members

office.

present at the meeting shall preside at the

meeting.

6. Vacation of office of member-The

Central Government shall remove a member if

(3) All questions which come up before any

he -

meeting of the Authority shall be decided by a

majority of the votes of the members present

(a) becomes subject to any of the dis-

and voting, and, in the event of an equality of

qualifications mentioned in section 4:

votes, the Chairman, or in his absence, the

Provided that no member shall be

person presiding, shall have and exercise a

removed on the ground that he has

second or casting vote.

THE NATIONAL AIRPORTS AUTHORITY ACT, 1985

CHAP. V

9. Vacancies, etc., not to invalidate

Government in this behalf, it shall be the

proceedings of the Authority - No act or

function of the Authority to manage the

proceeding of the Authority shall be invalid

aerodromes, the civil enclaves and the

merely by reason of -

aeronautical communication stations

efficiently.

(a) any vacancy in, or any defect in the

constitution of, the Authority; or

(2) It shall be the duty of the Authority to

provide air traffic service and air transport

(b) any defect in the appointment of a person

service at any aerodrome and civil enclaves.

acting as a member of the Authority; or

(3) Without prejudice to the generality of

the provisions contained in sub-sections (1)

Authority not affecting the merits of the

and (2), the Authority may -

case.

(a)

plan, develop, construct and maintain

10. Appointment of officers and other

runways, taxiways, aprons and terminals

employees of the Authority - For the purpose

and ancillary buildings at the aerodromes

of enabling it efficiently to discharge its

and civil enclaves;

functions under this Act, the Authority shall,

subject to the provisions of section 13 and to

(b) plant, procure, install and maintain

such rules as may be made in this behalf, appoint

navigational aids, communication

(whether on deputation or otherwise) such

equipment, beacons and ground aids at

number of officers and other employees as its

the aerodromes and at such locations as

may consider necessary:

may be considered necessary for safe

navigation and operation of aircraft;

Provided that the appointment of such

category of officers, as may be specified after

(c)

provide air safety services and search

consultation with the Chairman in such rules,

and rescue facilities in co-ordination

shall be subject to the approval of the Central

with other agencies;

Government.

(d) establish schools or institutions or

(2) Subject to the provisions of section 13,

centres for the training of its officers

every officer or other employee appointed by

and employees in regard to any matter

the Authority shall be subject to such conditions

connected with the purposes of this Act;

of service and shall be entitled to such

(e)

construct residential buildings for its

remuneration as may be determined by

employees;

regulations.

(f)

establish and maintain hotels, restaurants

11. Authority to act on business

and restrooms at or near the aerodromes;

principles - In the discharge of its functions

under this Act, the Authority shall act, so far as

(g) establish warehouses and cargo

may be, on business principles.

complexes at the aerodromes for the

storage or processing of goods;

CHAPTER III

(h) arrange for postal, money exchange,

FUNCTIONS OF THE AUTHORITY

insurance and telephone facilities for

12. Functions of the Authority - (1)

the use of passengers and other persons

Subject to the rules, if any, made by the Central

at the aerodromes and civil enclaves;

THE NATIONAL AIRPORTS AUTHORITY ACT, 1985

CHAP. V

(i)

make appropriate arrangements of watch

Central Government so directs by notification

and ward at the aerodromes and civil

in the Official Gazette, discharge the function

enclaves;

of providing air navigation services referred to

in the proviso to sub-section (2) of section 16

(j)

regulate and control the plying of

of the International Airports Authority Act,

vehicles, and the entry and exit of

1971 at the airports to which that Act applies.

passengers and visitors, in the

aerodromes and civil enclaves with due

(5) In the discharge of its functions under

regard to the security and protocol

this section, the Authority shall have due regard

functions of the Government of India;

to the development of air transport service and

to the efficiency, economy and safety of such

(k)

develop and provide consultancy services

service.

in India and abroad in relation to planning

and development of airports,

(6) Nothing contained in this section shall

airnavigation services, ground aids and

be construed as -

safety services or any facilities thereat;

(a) imposing an obligation on the Authority

(l)

establish and manage heliports;

to discharge any function or duty [other

than the function mentioned in sub-

(m) provide such transport facility as are, in

section (4) and the duties arising

the opinion of the Authority, necessary

therefrom] with respect to any aerodrome

to the passengers travelling by air;

to which this Act does not apply;

(n)

for an one or more companies under the

(b) authorising the disregard by the Authority

Companies Act, 1956 or under any other

of any law for the time being in force; or

law relating to companies to further the

efficient discharge of the functions

proceeding in respect of duty or liability

imposed on it by this Act;

to which the Authority or its officers or

(o)

take all such steps as may be necessary

other employees would not otherwise

or convenient for, or may be incidental

be subject.

to, the exercise of any power or the

CHAPTER IV

discharge of any function conferred or

imposed on it by this Act; and

PROPERTY AND CONTRACT

(p)

perform any other function considered

13. Transfer of assets and liabilities of

necessary or desirable by the Central

the Central Government to the Authority-

Government for ensuring the safe and

(1) As from such date as the Central Government

efficient operation of aircraft to, from

may appoint by notification in the Official

and across the air space of India.

Gazette -

(4) Notwithstanding anything contained in

(a) all properties and other assets including

the International Airports Authority Act, 1971

the equipment and navigational and

or sub-section (3) of section 1 or any other

ground aids relating to air traffic services

provision of this Act, the Authority shall, if the

and vested in the Central Government

THE NATIONAL AIRPORTS AUTHORITY ACT, 1985

CHAP. V

for the purposes of any aerodrome, civil

(f) all sums of money due to the Central

enclave and aero-nautical communication

Government in relation to any

station and administered by the Director-

aerodrome, civil enclave, aeronautical

General of Civil Aviation immediately

communication station, Civil Aviation

before such date shall vest in the

Training Centre and Fire Service Training

Authority;

School immediately before such date

shall be deemed to be due to the Authority;

(b) all properties and other assets vested in

the Central Government for the purposes

(g) all suits and other legal proceedings

of Civil Aviation Training Centre,

instituted or which could have been

Allahabad and the Fire Service Training

instituted by or against the Central

School, Calcutta and administered by

Government immediately before such

the Director-General of Civil Aviation

date for any matter in relation to any

immediately before such date shall vest

aerodrome, civil enclave, aeronautical

in the Authority;

communication station, Civil Aviation

Training Centre and Fire Services

(c)

all residential buildings owned by the

Training School may be continued or

Director-General of Civil Aviation

instituted by or against the Authority.

immediately before such date shall vest

in the Authority;

(2) If any dispute or doubt arises as to which

of the properties, rights or liabilities of the

(d) all debts, obligations and liabilities

Central Government have been transferred to

incurred, all contracts entered into, and

the Authority or as to which of the employees

all matters and things engaged to be done

serving under the Director- General of Civil

by, with, or for the Central government

Aviation are to be treated as on deputation with

immediately before such date for or in

the Authority under this section, such dispute

connection with the purposes of any

or doubt shall be decided by the Central

aerodrome, civil enclave, aeronautical

Government in consultation with the Authority

communication station, the Civil

and the decision of the Central Government

Aviation Training Centre and the Fire

thereon shall be final.

Services Training School shall be deemed

to have been incurred, entered into and

(3) Every employee holding any office under

engaged to be done by, with or for the

the Director-General of Civil Aviation

Authority;

immediately before the commencement of this

Act solely or mainly for or in connection with

(e)

all non-recurring expenditure incurred

such affairs of the directorate-General of Civil

by the Central Government for or in

Aviation as are relevant to the functions of the

connection with the purposes of any

Authority under this Act as may be determined

aerodrome, civil enclave, aeronautical

by the Central Government shall be treated as

communication station, Civil Aviation

on deputation with the Authority but shall hold

Training Centre, Fire Services Training

his office in the Authority by the same tenure

School up to such date and declared to

and upon the same terms and conditions of

be capital expenditure by the Central

service as respects remuneration, leave,

Government shall subject to such terms

provident fund, retirement or other terminal

and conditions as may be prescribed by

benefits as he would have held such office if the

the Central Government, be treated as

Authority had not been constituted and shall

capital provided by the Central

continue to do so until the Authority duly absorbs

Government to the Authority.

such employee in its regulate service:

THE NATIONAL AIRPORTS AUTHORITY ACT, 1985

CHAP. V

Provided that during the period of deputation

16. Mode of executing contracts on behalf

of any such employee with the Authority, the

of the Authority - (1) Every contract shall,

Authority shall pay the Central Government in

on behalf of the Authority, be made by the

respect of every such employee, such

Chairman or such other member or such officer

contribution toward his leave, salary, pension

of the Authority as may be generally or specially

and gratuity as the Central Government may, by

empowered in this behalf by the Authority and

order, determine:

such contracts or class of contracts as may be

specified in the regulations shall be sealed with

Provided further that any such employee,

the common seal of the Authority :

who has, in respect of the proposal of the

Authority to absorb him in his regular service,

Provided that no contract exceeding such

intimated within such time as may be specified

value or amount as the Central Government

in this behalf by the Authority his intention of

may, from time to time, by order, fix in this

not becoming a regular employee of the

behalf shall be made unless it has been

Authority, shall not be absorbed by the Authority.

previously approved by the Authority :

(4) Notwithstanding anything contained in

Provided further that no contract for the

the Industrial Disputes Act, 1947 or in any

acquisition or sale of immovable property or

other law for the time being in force, the

for the lease of any such property for a term

absorption of any employee by the Authority in

exceeding thirty years and no other contract

its regular service under this section shall not

exceeding such value or amount as the Central

entitle such employee to any compensation

Government may, from time to time, by order,

under that Act or other law and no such claim

fix in this behalf shall be made unless it has

shall be entertained by any court, tribunal or

been previously approved by the Central

other authority.

Government.

14. Compulsory acquisition of land for

(2) Subject to the provisions of sub-section

the Authority - Any land required by the

(1), the form and manner in which any contract

Authority for discharging its functions under

shall be made under this Act shall be such as

this Act shall be deemed to be needed for a

may be specified by regulations.

public purpose and such land may be acquired

(3) No contract which is not in accordance

for the Authority under the provisions of the

with the provisions of this Act and the

Land Acquisition Act, 1894 or of any other

regulations shall be binding on the Authority.

corresponding law for the time being in force.

CHAPTER V

15. Contracts by the Authority - Subject

to the provisions of section 16, the Authority

FINANCE, ACCOUNTS AND AUDIT

shall be competent to enter into and perform

17. Power of the Authority to charge

any contract necessary for the discharge of its

fees, rent, etc.- (1) The Authority may, -

functions under this Act.

(i) with the previous approval of the Central

Government, charge fees or rent, -

THE NATIONAL AIRPORTS AUTHORITY ACT, 1985

CHAP. V

(a)

for the landing, housing or parking

The Central Government may, after due

of aircraft or for any other service

appropriation made by Parliament by law in this

or facility offered in connection

behalf, -

with aircraft operations at any

(a) provide any capital, over and above the

aerodrome or heliport.

capital provided under clause (e) of sub-

Explanation. - In this sub-clause

section (1) of section 13 that may be

“aircraft” does not include an

required by the Authority for the

aircraft belonging to any armed

discharge of its functions under this Act

force of the Union and “aircraft

or for any purpose connected therewith

operations” do not include

on such terms and conditions as that

operations of any aircraft belonging

Government may determine;

to the said force;

(b) pay to the Authority, on such terms and

(b)

for providing air traffic services,

conditions as the Central Government

ground safety services, aeronautical

may determine, by way of loans or grants

communications and navigational

such sums of money as that Government

aids and meteorological services at

may consider necessary for the efficient

any aerodrome and at any

discharge by the Authority of its

aeronautical

communication

functions under this Act.

stations;

19. Fund of the Authority - (1) The

(c)

for the amenities given to the

Authority shall have its own fund and all receipts

passengers and visitors at any

of the Authority shall be credited thereto and

aerodrome, civil enclave or heliport;

all payments of the Authority shall be made

therefrom.

(d)

for the use and enjoyment by persons

of facilities and other services

(2) The Authority shall have power, subject

provided by the Authority at any

to the provisions of this Act, to spend such

aerodrome, civil enclave or heliport;

sums as its thinks fit to cover all administrative

expenses of the Authority and on objects or for

(ii) with due regard to the instructions that

purposes authorised by this Act and such sums

the Central Government may give to the

shall be treated as expenditure out of the fund

Authority, from time to time, charge

of the Authority.

fees or rent from persons who are given

by the Authority any facility for carrying

(3) All moneys standing at the credit of the

on any trade or business at any aerodrome

Authority which cannot immediately be applied

or heliport.

as provided in sub-section (2), shall be deposited

in the State Bank of India or in such scheduled

(2) The Authority may also charge, with the

bank or banks and subject to such conditions as

previous approval of the Central Government,

may, from time to time, be specified by the

fees for providing air navigation services

Central Government.

referred to in sub-section (4) of section 12 at

the airports to which the International Airports

Explanation.

- In this sub-section,

Authority Act, 1971 applies.

“scheduled bank” has the same meaning as in

clause (e) of section 2 of the Reserve Bank of

18. Additional capital and grant to the

India Act, 1934. (2 of 1934)

Authority by the Central Government -

THE NATIONAL AIRPORTS AUTHORITY ACT, 1985

CHAP. V

20. Allocation of surplus funds - (1) The

(2) The statement prepared under sub-

Authority may, from time to time, set apart

section (1) shall, not less than three months

such amounts as its thinks fit as a reserve fund

before the commencement of each financial

or funds for the purpose of expanding existing

year, be submitted for approval to the Central

facilities or services or creating new facilities

Government.

or services at any aerodrome or for the purpose

(3) The statement and the financial estimates

of providing against any temporary decrease of

of the Authority may with the approval of the

revenue or increase of expenditure from

Central Government, be revised by the

transient causes or for purposes of replacement

Authority.

or for meeting expenditure arising from loss or

damage from fire, cyclone, air-crash or other

22. Investment of funds - The Authority

accident or for meeting any liability arising out

may invest its funds (including any reserve

of any act or omission in the discharge of its

fund) in the securities of the Central Government

functions under this Act :

or in such other manner as may be prescribed.

Provided that without prejudice to the right

23. Borrowing powers of the Authority-

of the Authority to establish specific reserves

(1) The Authority may, with the consent of the

for one or more specific purposes, the Authority

Central Government or in accordance with the

shall also have the power to establish a general

terms of any general or special authority given

reserve :

to it by the Central Government, borrow money

form any source by the issue of bonds,

Provided further that the sums set apart

debentures or such other instruments as it may

annually in respect of each or any of the specific

deem fit for discharging all or any of its

and general reserves and the aggregate at any

functions under this Act.

time of such sums shall not exceed such limits

as may, from time to time be fixed in that behalf

(2) The Central Government may guarantee

by the Central Government.

in such manner as its thinks fit, the repayment

of the principal and the payment of interest

(2) After making provision for such reserve

thereon with respect to the loans borrowed by

fund or funds and for bad and doubtful debts,

the Authority under sub-section (1).

depreciation in assets and all other matters

which are usually provided for by companies

(3) Subject to such limits as the Central

registered and incorporated under the

Government may, from time to time, lay down,

Companies Act, 1956, the Authority shall pay

the Authority may borrow temporarily by way

the balance of its annual net profits to the

of overdraft or otherwise such amount as its

Central Government. (1 of 1956)

may require for discharging its functions under

this Act.

21. Submission of programme of

activities and financial estimates - (1) The

24. Accounts and audit - (1) The Authority

Authority shall, before the commencement of

shall maintain proper accounts and other relevant

each financial year, prepare a statement of the

records and prepare an annual statement of

programme of its activities during the

accounts including the profit and loss account

forthcoming financial year as well as a financial

and the balance-sheet in such form as may be

estimate in respect thereof.

prescribed by the Central Government in

consultation with the Comptroller and Auditor-

General of India.

THE NATIONAL AIRPORTS AUTHORITY ACT, 1985

CHAP. V

(3) The Comptroller and Auditor- General

the Chairman or any other member or to any

of India and any person appointed by him in

officer of the Authority, subject to such

connection with the audit of the accounts of the

conditions and limitations, if any, as may be

Authority shall have the same rights and

specified in the order, such conditions and

privileges and authority in connection with

limitations, if any, as may be specified in the

such audit as the Comptroller and Auditor-

order, such of its powers and functions under

General has in connection with the audit of

this Act (except the powers under section 38)

Government accounts and, in particular, shall

as it may deem necessary.

have the right to demand the production of

27. Authentication of orders and other

books, accounts, connected vouchers,

instruments of the Authority - All orders

documents and papers and inspect any of the

and decisions of the Authority shall be

offices of the Authority.

authenticated by the signature of the Chairman

(4) The accounts of the Authority as certified

or any other member authorised by the Authority

by the Comptroller and Auditor- General of

in this behalf and all other instruments executed

India or any other person appointed by him in

by the Authority shall be authenticated by the

this behalf together with the audit report thereon

signature of an officer of the Authority

shall be forwarded annually to the Central

authorised by it in this behalf.

Government and that Government shall cause

28. Officers and employees of the

the same to be laid before both Houses of

Authority to be public servants - All officers

Parliament.

and employees of the Authority shall, when

CHAPTER VI

acting or purporting to act in pursuance of the

provisions of this Act or of any rule or regulation

MISCELLANEOUS

made thereunder, be deemed to be public servants

25. Submission of annual report - (1)

within the meaning of section 21 of the Indian

The Authority shall, as soon as may be after the

Penal code.

end of each financial year, prepare and submit

29. Protection of action taken in good

to the Central Government in such form as may

faith - No suit, prosecution or other legal

be prescribed a report giving an account of its

proceeding shall lie against the Authority or

activities during that financial year and the

any member or any officer or other employee

report shall also give an account of the activities

of the Authority for anything which is in good

which are likely to be undertaken by the Auditing

faith done or intended to be done in pursuance

the next financial year.

of this Act or of any rule or regulation made

(2) The Central Government shall cause

thereunder or for any damage sustained by any

such report to be laid before both Houses of

aircraft or vehicle in consequence of any defect

Parliament as soon as may be after it is

in any of the aerodromes, civil enclaves,

submitted.

aeronautical communication stations or other

things belonging to or under the control of the

26. Delegation - The authority may, by

Authority.

general or special order in writing, delegate to

THE NATIONAL AIRPORTS AUTHORITY ACT, 1985

CHAP. V

30. Custody and disposal of lost

(1) shall be complied with by the person or

property- Subject to such regulations as the

persons to whom such direction is issued.

Authority may make in this behalf, the Authority

(3) If any person wilfully fails to comply

shall provide for seccuring the safe custody and

with any direction issued under this section, he

restoration of any property which, while not in

shall be punishable with imprisonment for a

proper custody, is found on any premises

term which may extend to six months or with

belonging to the Authority or under its overall

fine which may extend to five thousand rupees,

control or in any aircraft on any such premises.

or with both.

31. Provisions relating to income-tax -

34. Power of the Central Government to

For the purpose of the Income- tax Act, 1961 or

temporarily divest the Authority of the

any other enactment for the time being in force

management of any aerodrome - (1) If at

relating to income-tax or any other tax on

any time the Central Government is of opinion

inccome, profits or gains, the Authority shall

that in the public interest it is necessary or

be deemed to be a company within the meaning

expedient so to do, it may, by order, direct the

of the Income-tax, 1961 and shall be liable to

Authority to entrust the management of any

tax accordingly on its income, profits and gains.

aerodrome, civil enclave or aeronautical

32. Power of the Authority to undertake

communication station with effect from such

certain works - The Authority may undertake

date and to such person as may be specified in

to carry out on behalf of any person any works

the order and the Authority shall be bound to

or services or any class of works or services on

comply with such direction :

such terms and conditions as may be agreed uon

Provided that before an order is made under

between the Authority and the person concerned.

this sub-section the Authority shall be given a

33. Power to issue directions - (1) The

reasonable opportunity of being heard in the

Authority or any offcer specially authorised by

matter.

it in this behalf may, from time to time, by

(2) Where the management of any

order, issue directions, consistent with

aerodrome, civil enclave or aeronautical

provisions of the Aircraft Act, 1934, and the

communication station is entrusted to any person

rules made thereunder, with respect to any of

specified under sub-section (1) (hereafter in

the matters specified in clauses (f), (h), (i), (j),

this section referred to as the authorised

(k), (m), (p), (q), and (r) of sub-secction (2) of

person), the Authority shall cease to exercise

sectionn 5 of that Act, to any person or persons

and discharge all its powers and functions under

engaged in aircraft operations or using any

this Act in relation to such aerodrome, civil

aerodrome or civil enclave, in any case where

enclave or aeronautical communication station

the Authority or the officer is satisfied that in

and such powers and functions shall be exercised

the interests of the security of India or for

and discharged by the authorised person in

securing the security of the aircraft it is

accordance with the instructions, if any, which

neccessary to do so.

the Central Government may give to the

(2) Every direction issued under sub-section

authorised person from time to time.

THE NATIONAL AIRPORTS AUTHORITY ACT, 1985

CHAP. V

Provided that no such power or function as

(6) On the cesser of opertion of any order

may be specified by the Central Government by

made under sub-section (1) in relation to any

a general or special order shall be exercised or

aerodrome, civil enclave, aeronautical

discharged by the authorised person except

communication station, the authorised person

with the previous sanction of the Central

shall hand over to the Authority any property

Government.

(including any sum of money or other asset)

remaining with him in connection with the

(3) An order made under sub-section (1)

management of such aerodrome, civil enclave,

shall unless rescinded, be in operation for a

aeronautical communication station.

period of six months from the date on which the

management of the aerodrome, civil enclave or

(7) Anything done or any action taken

aeronautical communication station is entrusted

lawfully by the authorised person in relation to

to the authorised person :

any aerodrome, civil enclave, aeronautical

communication station during the period of

Provided that the Central Government may

operation of an order made under sub-section

extend such period for a further period or period

(1) shall be deemed to have been done or taken

not exceeding eighteen months.

by the Authority and shall be binding on the

(4) During the operation of an order made

Authority.

under sub-section (1), it shall be competent for

35. Power of the Central Government to

the Central Government to issue, from time to

supersede the Authority - (1) If, at any time,

time, such directions to the Authority as are

the Central Government is of opinion-

necessary to enable the authorised person to

exercise the powers and discharge the functions

(a) that on account of a grave emergency,

of the Authority under this Act in relation to the

the Authority is unable to discharge the

aerodrome civil enclave or aeronautical

functions and duties imposed on it by or

communication station, the management of

under the provisions of this act ; or

which has been emrusted to his and in particular

(b) that the Authority has persistently made

to transfer any sum of money from the fund of

default in complying with any direction

the Authority to the authorised person for the

issued by the Central Government under

management of the aerodrome, civil enclave or

this Act or in the discharge of the

aeronautical communication station and every

functions and duties imposed on it by or

such direction shall be complied with by the

under the provisions of this Act and as a

Authority.

result of which default the financial

(5) On the cesser of operation of any order

position of the Authority or the

made under sub-section (1) in relation to any

administration of any aerodrome, civil

aerodrome, civil enclave or aeronautical

enclave, aeronautical commu-nication

communication station, the authorised person

station has deteriorated; or

shall cease to exercise and perform the powers

and functions of the Authorised under this Act

necessary in the public interest so to do,

in relation to such aerodrome, civil enclave or

the Central Government may, by

aeronautical communication station and the

notification in the Official Gazette,

Authority shall continue to exercise and perform

supersede the Authority for such period,

such powers and functions in accordance with

not exceeding six months, as may be

the provisions of this Act.

spcified in the notification :

THE NATIONAL AIRPORTS AUTHORITY ACT, 1985

CHAP. V

Provided that before issuing a notification

under sub-section (1) or as extended under this

under this sub-section for the reasons mentioned

sub-section, take action under clause (b) of this

in clause (b) the Central Government shall give

sub-section.

a reasonable opportunity to the Authority to

(4) The Central Government shall cause a

show cause why it should not be superseded and

notification issued under sub-section (1) and a

shall consider the explanations and objections,

full report of any action taken under this section

if any of the Authority.

and the circumstances leading to such action to

(2) Upon the publication of a notification

be laid before both Houses of Parliament at the

under sub-section (1) superseding the Authority

earliest opportunity.

36. Power of the Central Government

(a) all the members shall, as from the date

to issue directions - (1) Without prejudice

of supersession vacate their offices as

to the foregoing provisions of this Act, the

such;

Authority shall, in the discharge of its functions

and duties under this Act, be bound by such

(b) all the powers, functions and duties which

directions on questions of policy as the Central

may, by or under the provisions of this

Government may give in writing to it from time

Act, be exercised or discharged by or on

to time :

behalf of the Authority, shall until the

Authority is re-constituted under sub-

Provided that the Authority shall, as far as

section (3), be exercised and discharged

practicable, be given opportunity to express its

by such person or persons as the Central

views before any direction is given under this

Government may direct;

sub-section.

(2) The decision of the Central Government

Authority shall, until the Authority is re-

whether a question is one of policy or not shall

constituted under sub-section (3), vest

be final.

in the Central Government.

(3) The Central Government may, from time

(3) On the expiration of the period of

to time, issue directions to the Authority

supersession specified in the notification issued

regarding the discharge of any functions to it

under sub-section (1), the Central Government

under clause (e) of sub-section (3) of section

may -

12 and the Authority shall be bound to comply

with such directions.

(a) extend the period of supersession for

such further term, not exceeding six

37. Power to make rules - (1) The Central

months, as it may consider necessary; or

Government may, by notification in the Official

Gazette, make rules for carrying out the purposes

(b) re-constitute the Authority by fresh

of this Act.

appointment and in such case any persons

who vacated their offices under clause

(2) In particular and without prejudice to the

(a) of sub-section (2) shall not be deemed

generality of the foregoing power, such rules

disqualified for appointment:

may provide for-

Provided that the Central Government may,

(a) the conditions of service of the Chairman

at any time before the expiration of the period

and other members under section 5

of supersession, whether as originally specified

including the salaries payable to the

THE NATIONAL AIRPORTS AUTHORITY ACT, 1985

CHAP. V

Chairman and to the members who are

provide for all matters for which provision is

required to render whole- time service

necessary or expedient for the purpose of giving

and the fees and allowances payable to

effect to the provisions of this Act.

the members who are required to render

(2) Without prejudice to the generality of

part-time service;

the foregoing power, such regulations may

(b) the period of notice required to terminate

provide for -

the appointment of any member, who is

(a)

the time and places of the meetings of

required to render part-time service and

the Authority and the procedure to be

who is not a servant of the Government,

followed for the transaction of business

under section 5 and the period of notice

at such meetings under sub-section (1)

that may be given to the Central

of section 8;

Government by a member before he

resigns his office, under that section;

(b) the conditions of service and the

remuneration of officers and other

(c)

the conditions and limitations subject to

employees appointed by the Authority;

which the Authority may appoint officers

and other employees under sub-section

(c)

the

allotment

residential

(1) of section 10;

accommodation to the officers and other

employees appointed by the Authority;

(d) the terms and conditions subject to which

the non-recurring expenditure incurred

(d) the contracts or class of contracts which

by the Central Government for or in

are to be sealed with the common seal of

connection with the purposes of any

the Authority and the form and manner in

aerodrome, civil enclave, aeronautical

which a contract may be made by the

communication station, the Civil

Authority;

Aviation Training Centre and the Fire

(e)

the storage or processing of goods in

service Training School shall be treated

any warehouse established by the

as the capital provided by the Central

Authority under clause (g) of sub-section

Government to the Authority under

(3) of section 12 and the charging of

clause (e) of sub-section (1) of section

fees for such storage or processing;

13;

(f)

the custody and restoration of lost

(e)

the manner in which the Authority may

property and the terms and conditions

invest its funds under section 22;

under which lost property may be restored

(f)

the form in which the Authority shall

to the persons entitles thereto;

prepare the annual statement of accounts

(g) the disposal of any lost property in cases

including the profit and loss account and

where such property is not restored;

the balance-sheet under section 24; and

(h) securing the safety of aircraft, vehicles

(g) any other matter which is to be or may be

and persons using the aerodrome or civil

prescribed.

enclave and preventing danger to the

38. Power to make regulations - (1) The

public arising from the use and operation

Authority may make regulations not inconsistent

of aircraft in the aerodrome or civil

with this Act and the rules made thereunder to

enclave;

THE NATIONAL AIRPORTS AUTHORITY ACT, 1985

CHAP. V

made by the Authority under this Act may be

(i)

preventing obstruction within the

made by the Central Government by notification

aerodrome or civil enclave for its normal

in the Official Gazette within one year of the

functioning;

constitution of the Authority and any regulation

(j)

prohibiting the parking or waiting of any

so made may be altered or rescinded by the

vehicle of carriage within the aerodrome

Authority by means of a regulation made by it

or civil enclave expcept at places

under this Act.

specified by the Authority;

40. Rules and regulations to be laid before

(k)

prohibiting or restriccting access to any

Parliament- Every rule and every regulation

part of the aerodrome or civil enclave;

made under this shall be laid, as soon as may be

after it is made, before each House of

(l)

preserving order within the aerodrome

Parliament, while it is in session, for a total

or civil enclave and preventing damage

period of thirty days which may be comprised

to property therein;

in one session or in two or more successive

(m) regulating or restricting advertising

sessions, and if, before the expiry of the sesssion

within the aerodrome or civil enclave;

immediately following the session or the

successive sessions aforesaid, both Houses

(n)

requiring any person, if so directed by an

agree in making any modification in the rule or

officer appointed by the Authority in

regulation, as the case may be, should not be

this behalf, to leave the aerodrome or

made, the rule or regulattion shall thereafter

civil enclave or any particcular part of

have effect only in such modified form or be of

the aerodrome or civil enclave; and

no efect, as the case may be; so, however, that

(o)

generally for the efficient and proper

any such modification or annulment shall be

management of the aerodrome or civil

without prejudice to the validity of anything

enclave.

previously done under that rule or regulation.

(3) Any regulation made under any of the

41. Power to remove diffculties - If any

clauses (h) to (o) (inclusive) of sub-section (2)

difficulty arises in giving effect to the provisions

may provide that a contravention thereof shall

of this Act, The Central Government may, by

be punishable with fine which may extend to

general or special order published in the Official

five hundred rupees and in the case of a

Gazette make such provisions not inconsistent

continuing contravention with an additional fine

with the provisions of this Act as appear to it to

which may extend to twenty rupees for every

be necessary or expedient for the removal of

day during which such contravention continues

the difficulty:

after conviction for the first such contravention.

Provided that no such order shall be made

(4) No regulation made by the Authority

after the expiration of one year from the

under this section shall have effect until it has

commencement of this Act.

been approved by the Central Government and

published in the Official Gazette.

(2) Every order made under sub-section (1)

shall be laid, as soon as may be after it is made,

39. Supplementary provisions respecting

before each Houe of Parliament, while it is in

regulations- Any regulation which may be

session, for a total period of thirty days which

THE NATIONAL AIRPORTS AUTHORITY ACT, 1985

CHAP. V

may be comprised in one session or in two or

such modification or annulment shall be without

more succcessive sessions, and if, before the

prejudice to the validity of anything previously

expiry of the session immediately following

done under that order.

the session or the successive sessions aforesaid,

42. Amendment of Act 22 of 1934 - In

both Houses agree in making any modification

sub-section (2) of section 5 of the Aircraft Act,

in the order or both Houses agree that the order

1934, in clause (b), after the words and figures

should not be made, the order shall thereafter

"the International Airports Authority Act, 1971",

have effect only in such modified form or be of

the words and figures "or the National Airports

no effect, as the case be; so, however, that any

Authority Act, 1985" shall be inserted. 43 of

1971

THE AIRPORTS AUTHORITY OF INDIA ACT, 1994

Chap. VI

CHAPTER VI

THE AIRPORTS AUTHORITY OF INDIA ACT,

1994

TABLE OF CONTENTS

SECTIONS

PAGES

CHAPTER I

PRELIMINARY

Short title, commencement and application

Definitions

CHAPTER II

THE AIRPORTS AUTHORITY OF INDIA

Constitution and incorporation of the Authority

Disqualification for office of member

Term of office and conditions of service of members .

Vacation of office of member .

Eligibility of member for re-appointment

Meetings

Vacancies, etc., not to invalidate proceedings of the Authority

10. Appointment of officers and other employees of the Authority

11. Authority to act on business principles

CHAPTER III

FUNCTIONS OF THE AUTHORITY

12. Functions of the Authority

CHAPTER IV

PROPERTY AND CONTRACT

13. Undertakings of the International Airports Authority and the

National Airports Authority to vest in the Authority

14. General effect of vesting of undertaking in the Authority

15. Licences, etc., to be deemed to have been granted to the Authority

16. Tax exemption or benefit to continue to have effect

17. Guarantee to be operative

THE AIRPORTS AUTHORITY OF INDIA ACT, 1994

Chap. VI

18. Provisions in respect of officers and other employees of the

International Airports Authority and the National Airports Authority

19. Compulsory acquisition of land for the Authority

20. Contracts by the Authority

21. Mode of executing contracts on behalf of the Authority

CHAPTER V

FINANCE, ACCOUNTS AND AUDIT

22. Power of the Authority to charge fees, rent, etc.

23. Additional capital and grant to the Authority by the Central Government

24. Fund of the Authority and its investment

25. Allocation of surplus funds

26. Submission of programme of activities and financial estimates

27. Borrowing powers of the Authority

28. Accounts and audit

CHAPTER VI

MISCELLANEOUS

29. Submission of annual report

30. Delegation

31. Authentication of orders and other instruments of the Authority

32. Officers and employees of the Authority to be public servants

33. Protection of action taken in good faith

34. Custody and disposal of lost property

35. Provisions relating to income-tax

36. Power of the Authority to undertake certain works

37. Power to issue directions

38. Power of the Central Government to temporarily divest the

Authority of the management of any airport

39. Power of the Central Government to supersede the Authority .

40. Power of the Central Government to issue directions .

41. Power to make rules

42. Power to make regulations

43. Rules and regulations to be laid before parliament

44. Power to remove difficulties

45. Amendment of Act 22 of 1934 .

46. Repeal and Saving

Chap. VI

THE AIRPORTS AUTHORITY OF INDIA ACT, 1994

CHAPTER VI

THE AIRPORTS AUTHORITY OF INDIA ACT,

1994

(55 of 1994)

(September 12, 1994)

An Act to provide for the constitution of

the Airports Authority of India and for the

and

transfer and vesting of the undertakings of the

(d) all training stations, establishments and

International Airports Authority of India and

workshops relating to air transport

the National Airports Authority to and in the

services.

Airports Authority of India so constituted for

the better administration and cohesive

2. Definitions- In this Act, unless the

management of airports and civil enclaves

context otherwise requires,-

whereat air transport services are operated or

(a) “aeronautical communication station”

are intended to be operated and of all

means a station in the aeronautical

aeronautical communication stations and for

communication service which includes

matters connected therewith or incidental

aeronautical practising service,

thereto.

aeronautical fixed service, aeronautical

Be it enacted by parliament in the Forty-

mobile service and aeronautical radio

fifth Year of the Republic of India as follows:-

communication service;

CHAPTER I

(b) “airport” means a landing and taking off

area for aircrafts, usually with runways

PRELIMINARY

and aircraft maintenance and passenger

1. Short title, commencement and

facilities and includes aerodrome as

application-(1) This Act may be called the

defined in clause (2) of section 2 of the

Airports Authority of India Act, 1994.

Aircraft Act, 1934;

(2) It shall come into force on such date

as the Central Government may, by notification

to be used for the landing and take-off of

in the official Gazette, appoint.

aircrafts with short take-off and landing

characteristics and includes all buildings

(3) It applies to-

and structures thereon or appertaining

(a) all airports whereat air transport services

thereto;

are operated or are intended to be

(d) “air traffic service” includes fight

operated, other than airports and airfields

information service, alerting service, air

belonging to, or subject to the control

traffic advisory service, air traffic control

of, any armed force of the Union;

service, area control service, approach

(b) all civil enclaves;

control service and airport control

service;

THE AIRPORTS AUTHORITY OF INDIA ACT, 1994

Chap. VI

(e)

“air transport service” means any service,

member referred to in clause (b) of sub-

for any kind of remuneration, whatsoever,

section (3) of section 3;

for the transport by air of persons, mail

(m) “National Airports Authority” means the

or any other thing, animate or inanimate,

National Airports Authority constituted

whether such service relates to a single

under section 3 of the National Airports

flight or series of flights;

Authority Act, 1985;

(f)

“appointed day” means such date as the

(n) “prescribed” means prescribed by rules

Central Government may, by notification

made under this Act;

in the official Gazette, appoint for the

purposes of section 3;

(o) “regulations” means regulations made

under this Act.

(g)

“Authority” means the Airports Authority

of India constituted under section 3;

CHAPTER II

(h)

“Chairperson” means the chairperson of

THE AIRPORTS AUTHORITY OF

the Authority appointed under clause (a)

INDIA

of sub-section (3) of section 3;

3. Constitution and incorporation of the

(i)

“civil enclave” means the area, if any,

Authority-(1) With effect from the appointed

allotted at an airport belonging to any

day, the Central Government shall, by

armed force of the union, for use by

notification in the official Gazette, constitute

persons availing of any air transport

an authority to be called the Airports Authority

services from such airport or for the

of India.

handling of baggage or cargo by such

(2) The Authority shall be a body corporate

service, and includes land comprising of

by the name aforesaid having perpetual

any building and structure on such area;

succession and a common seal, with power,

(j)

“heliport” means an area, either at ground

subject to the provisions of this Act, to acquire,

level or elevated on a structure, used or

hold and dispose of property both movable and

intended to be used for the landing and

immovable, and to contract and shall by the said

take-off of helicopters and includes any

name sue and be sued.

area for parking helicopters and all

(3) The Authority shall consist of -

buildings and structures thereon or

(a) a chairperson to be appointed by the

appertaining thereto;

central government;

(k)

“International Airports Authority” means

(b) the Director General of Civil aviation,

the International Airports Authority of

or an officer not below the rand of the

India constituted under section 3 of the

Deputy Director General of Civil

International Airports Authority Act,

Aviation, to be appointed by the Central

1971;

Government, ex officio;

(l)

“member” means a member of the

Authority and includes the chairperson,

fourteen members to be appointed by

but does not include, for the purposes of

the Central Government.

sections 4, 5, 6, and 7, an ex officio

THE AIRPORTS AUTHORITY OF INDIA ACT, 1994

Chap. VI

(4) The Chairperson shall be a whole-time

attains the age of sixty years, whichever

member and other members referred to in clause

is earlier , and

(ii) every part-time member (other than the

whole-time or part-time members as the Central

ex officio member) shall hold office for

Government may think fit.

a period of three years from the date on

(5) The Chairperson and the members

which he assumes office:

referred to in clause (c) of subsection (3) shall

Provided that the Central Government

be chosen from among persons who have special

may-

knowledge and experience in air transport or

any other transport services industry,

(a) terminate the appointment of any

commercial or financial matters or

whole-time member, who is not a

administration and from among persons who

servant of the Government, after

are capable of representing organisations of

giving him notice for a period of

workers and consumers.

not less than three months or, in

lieu thereof, on payment of an

4. Disqualification for office of

amount equal to his salary and

member- A person shall be disqualified for

allowances, if any, for a period of

being appointed as a member if he-

three months;

(a) has been convicted and sentenced to

(b) terminate the appointment of any

imprisonment for an offence, which, in

part-time member who is not a

the opinion of the Central Government,

servant of the Government after

involves moral turpitude; or

giving him notice for such period as

may be prescribed; and

(b) is an undischarged insolvent; or

appointment of any member who is

by a competent court; or

a servant of the Government.

(d) has been removed or dismissed from the

(2) The other conditions of service of the

service of the Government or a body

members shall be such as may be prescribed.

corporate owned or controlled by the

Government; or

(3) Any member may resign his office by

giving notice in writing for such period as

(e) has in the opinion of the central

may be prescribed, to the Central Government

Government such financial or other

and, on such resignation being notified in the

interest in the Authority as is likely to

official Gazette by that Government, such

affect prejudicially the discharge by him

member shall be deemed to have vacated his

of his functions as a member.

office.

5. Term of office and conditions of

6. Vacation of office of member- The

service of members- (1) Subject to the

Central Government shall remove a member

provisions of section 6,-

if he -

(i) every whole-time member (other than

(a) becomes subject to any of the

the ex officio member) shall hold office

disqualifications mentioned in section

for a period of five years from the date

on which he assumes office or till he

THE AIRPORTS AUTHORITY OF INDIA ACT, 1994

Chap. VI

Provided that no member shall be removed

present and voting, and, in the event of an

on the ground that he has become subject to

equality of votes, the Chairperson, or in his

the disqualification mentioned in clause (e)

absence, the person presiding, shall have and

of that section, unless he has been given a

exercise a second or casting vote.

reasonable opportunity of being heard in the

9. Vacancies, etc., not to invalidate

matter; or

proceedings of the Authority- No act or

(b) refuses to act or becomes incapable of

proceeding of the Authority shall be invalid

acting; or

merely by reason of-

(a) any vacancy in, or any defect in the

from the Authority, absent from three

constitution of the Authority; or

consecutive meetings of the Authority;

(b) any defect in the appointment of a person

acting as a member of the Authority; or

(d) in the opinion of the Central

Government, has so abused his position

Authority not affecting the merits of the

as to render his continuance in office

case.

detrimental to the public interest:

10.Appointment of officers and other

Provided that no member shall be removed

employees of the Authority- (1) For the

under this clause unless he has been given a

purpose of enabling it efficiently to discharge

reasonable opportunity of being heard in the

its functions under this Act, the Authority

matter.

shall, subject to the provisions of section 18

7. Eligibility of member for re-

and to such rules as may be made in this

appointment - Any person ceasing to be a

behalf, appoint (whether on deputation or

member shall, unless disqualified under section

otherwise) such number of officers and other

4, be eligible for re-appointment.

employees as it may consider necessary:

8. Meetings- (1) The Authority shall

Provided that the appointment of such

meet at such times and places, and shall observe

category of officers, as may be specified after

such rules of procedure in regard to the

consultation with the Chairperson in such rules,

transaction of the business at its meetings

shall be subject to the approval of the Central

(including the quorum at such meetings) as

Government.

may be provided by regulations.

(2) Subject to the provisions of section 18,

(2) The Chairperson, or, if for any reason

every officer or other employee appointed by

he is unable to attend any meeting of the

the Authority shall be subject to such conditions

authority, any other member chosen by the

of service and shall be entitled to such

members present at the meeting shall preside

remuneration as may be determined by

at the meeting.

regulations.

(3) All questions which come up before

11. Authority to act on business

any meeting of the Authority shall be decided

principles- In the discharge of its functions

by a majority of the votes of the members

under this Act, the Authority shall act, so far as

may be, on business principles.

THE AIRPORTS AUTHORITY OF INDIA ACT, 1994

Chap. VI

CHAPTER III

(g) establish warehouses and cargo

complexes at the airports for the storage

FUNCTIONS OF THE AUTHORITY

or processing of goods;

12. Functions of the Authority-

(1)

(h) arrange for postal, money exchange,

Subject to the rules, if any, made by the Central

insurance and telephone facilities for

Government in this behalf, it shall be the

the use of passengers and other persons

function of the Authority to manage the airports,

at the airports and civil enclaves;

the civil enclaves and the aeronautical

communication stations efficiently.

(i)

make appropriate arrangements for watch

and ward at the airports and civil enclaves;

(2) It shall be the duty of the Authority to

provide air traffic service and air transport

(j)

regulate and control the plying of

service at any airport and civil enclaves.

vehicles, and the entry and exit of

passengers and visitors, in the airports

(3) Without prejudice to the generality of

and civil enclaves with due regard to the

the provisions contained in sub-sections (1)

security and protocol functions of the

and (2), the Authority may-

Government of India;

(a) plan, develop, construct and maintain

(k) develop and provide consultancy,

runways, taxiways, aprons and terminals

construction or management services,

and ancillary buildings at the airports

and undertake operations in India and

and civil enclaves;

abroad in relation to airports, air-

(b) plan, procure, install and maintain

navigation services, ground aids and

navigational aids, communication

safety services or any facilities thereat;

equipment, beacons and ground aids at

(l)

establish and manage heliports and

the airports and at such locations as may

airstrips;

be considered necessary for safe

navigation and operation of aircrafts;

(m) provide such transport facility as are, in

the opinion of the Authority, necessary

to the passengers travelling by air;

and rescue facilities in co-ordination

with other agencies;

(n) form one or more companies under the

Companies Act, 1956 or under any other

(d) establish schools or institutions or

law relating to companies to further the

centres for the training of its officers

efficient discharge of the functions

and employees in regard to any matter

imposed on it by this Act;

connected with the purposes of this Act;

(o)

take all such steps as may be necessary

(e) construct residential buildings for its

or convenient for, or may be incidental

employees;

to, the exercise of any power or the

(f) establish and maintain hotels, restaurants

discharge of any function conferred or

and restrooms at or near the airports;

imposed on it by this Act;

THE AIRPORTS AUTHORITY OF INDIA ACT, 1994

Chap. VI

(p) perform any other function considered

Authority which is transferred to and which

necessary or desirable by the Central

vests in, the Authority under sub-section (1)

Government for ensuring the safe and

shall be deemed to include all assets, rights,

efficient operation of aircraft to, from

powers, authorities and privileges and all

and across the air space of India;

property movable and immovable, real or

personal, corporeal or incoporeal, present or

(q) establish training institutes and

contingent, of whatever nature and wheresoever

workshops;

situate, including lands, buildings, machinery,

(r) any other activity at the airports and the

equipments, works, workshops, cash balances,

civil enclaves in the best commercial

capital reserves, reserve funds, investments,

interests of the Authority including cargo

tenancies, leases and book debts and all other

handling, setting up of joint ventures for

rights and interests arising out of such property

the discharge of any function assigned

as were immediately before the appointed day

to the Authority.

in the ownership, possession or power of the

International Airports Authority, or as the case

(4) In the discharge of its functions under

may be, the National Airports Authority, in

this section, the Authority shall have due regard

relation to its undertaking, whether within or

to the development of air transport service and

outside India, all books of account and

to the efficiency, economy and safety of such

documents relating thereto and shall also be

service.

deemed to include all borrowings, liabilities

(5) Nothing contained in this section shall

and obligations of whatever kind then subsisting

be construed as-

of the International Airports Authority, or as

the case may be, the National Airports Authority

(a) authorising the disregard by the Authority

in relation to its undertaking.

of any law for the time being in force; or

14. General effect of vesting of

(b) authorising any person to institute any

undertaking in the Authority -(1) All

proceeding in respect of duty or liability

contracts, agreements and working

to which the Authority or its officers or

arrangements subsisting immediately before

other employees would not otherwise

the appointed day and affecting the International

be subject.

Airports Authority, or as the case may be, the

CHAPTER IV

National Airports Authority shall, in so far as

they relate to the International Airports

PROPERTY AND CONTRACT

Authority, or as the case may be, the National

13. Undertakings of the International

Airports Authority, cease to have effect or be

Airports Authority and the National

enforceable against the International Airports

Airports Authority to vest in the Authority-

Authority, or as the case may be, the National

(1) On and from the appointed day, there shall

Airports Authority and shall be of as full force

be transferred to, and vest in, the Authority

and effect against or in favour of the Authority

constituted under section 3, the undertakings

in which the undertakings have vested by virtue

of the International Airports Authority and the

of this Act and enforceable as fully and

National Airports Authority.

effectually as if, instead of the International

Airports Authority, or as the case may be, the

(2) The undertaking of the International

Airports Authority or the National Airports

THE AIRPORTS AUTHORITY OF INDIA ACT, 1994

Chap. VI

National Airports Authority, the Authority had

International Airports Authority and the National

been named therein or had been a party thereto.

Airports Authority have vested by virtue of this

Act.

(2) Any proceeding, suit or cause of action

pending or existing immediately before the

(2) Where any payment made by the

appointed day by or against the International

International Airports Authority or the National

Airports Authority or the National Airports

Airports Authority is exempt from deduction

Authority in relation to its undertakings may, as

of the tax at source under any provision of the

from that day, be continued and enforced by or

Income-tax Act, 1961, the exemption from tax

against the Authority in which it has vested by

will continue to be available as if the provisions

virtue of this Act, as might have been enforced

of the said Act made applicable to the

by or against the International Airports Authority

International Airports Authority or the National

or the National Airports Authority if this Act

Airports Authority were operative in relation to

had not been passed, and shall cease to be

the Authority in which the undertakings of the

enforceable by or against the International

International Airports Authority and the National

Airports Authority, or as the case may be, the

Airports Authority have vested by virtue of this

National Airports Authority.

Act.

15. Licences, etc., to be deemed to have

(3) The transfer and vesting of the

been granted to the Authority- With effect

undertakings or any part thereof in terms of

from the appointed day, all licences, permits,

section 13 shall not be construed as a transfer

quotas and exemptions, granted to the

within the meaning of the Income-tax Act, 1961

International Airports Authority or the National

for the purposes of capital gains.

Airports Authority in connection with the affairs

17. Guarantee to be operative- Any

and business of the International Airports

guarantee given for or in favour of the

Authority, or as the case may be, the National

International Airports Authority or the National

Airports Authority, under any law for the time

Airports Authority with respect to any loan or

being in force, shall be deemed to have been

lease finance shall continue to be operative in

granted to the Authority in which the

relation to the Authority in which the

undertakings of the International Airports

Authority and the National Airports Authority

have vested by virtue of this Act.

16. Tax exemption or benefit to continue

18. Provisions in respect of officers and

to have effect-(1) Where any exemption from,

other employees of the International

or any assessment with respect to, any tax has

Airports Authority and the National Airports

been granted or made or any benefit by way of

Authority- (1) (a) Every officer or other

set off or carry forward, as the case may be, of

employee of the International Airports Authority

any unabsorbed depreciation or investment

serving in its employment immediately before

allowance or other allowance or loss has been

the appointed day shall, in so far as such officer

extended or is available to the International

or other employee is employed in connection

Airports Authority or the National Airports

with the undertaking which has vested in the

Authority, under the Income-tax Act, 1961,

Authority by virtue of this Act, becomes, as

such exemption, assessment or benefit shall

from the appointed day, an officer or, as the case

continue to have effect in relation to the

may be, other employee of the International

Authority in which the undertakings of the

Airports Division of the Authority.

THE AIRPORTS AUTHORITY OF INDIA ACT, 1994

Chap. VI

(b) Every officer or other employee of the

Authority and the National Airports Authority

National Airports Authority serving in its

have vested, such officer or other employee

employment immediately before the appointed

shall be deemed to have resigned from the

day shall, in so far as such officer or other

respective cadre.

employee is employed in connection with the

(4) Notwithstanding anything contained in

undertaking which has vested in the Authority

the Industrial Disputes Act, 1947 or in any

by virtue of this Act, becomes, as from the

other law for the time being in force, the transfer

appointed day, an officer or, as the case may be,

of the services of any officer or other employee

other employee of the National Airports

of the International Airports Authority or the

Division of the Authority.

National Airports Authority to the Authority

(2) Every officer or other employee of the

shall not entitle such officer or other employee

International Airports Authority or the National

to any compensation under this Act or under

Airports Authority who becomes an officer or,

any other law for the time being in force and no

as the case may be, other employee of the

such claim shall be entertained by any court,

Authority, as referred to in sub-section (1),

tribunal or other authority.

shall hold his office or service therein by the

(5) The officers and other employees who

same tenure, at the same remuneration, upon

have retired before the appointed day from the

the same terms and conditions, with the same

service of the International Airports Authority

obligations and with the same rights and

or the National Airports Authority and are

privileges as to leave, passage, insurance,

entitled to any benefits, rights or privileges

superannuation scheme, provident fund, other

shall be entitled to receive the same benefits,

funds, retirement, pension, gratuity and other

rights or privileges from the Authority in which

benefits as he would have held under the

the undertaking of the International Airports

International Airports Authority or, as the case

Authority and the National Airports Authority

may be, the National Airports Authority if its

have vested.

undertaking had not vested in the Authority and

shall continue to do so as an officer or other

(6) The trusts of the Provident Fund and

employee, as the case may be, of the Authority

Group Insurance and Superannuation Scheme

or until the expiry of a period of one year from

of the International Airports Authority or the

the appointed day if such officer or other

National Airports Authority and any other bodies

employee opts not to be the officer or other

created for the welfare of officers or employees

employee of the Authority within such period:

would continue to discharge their functions in

the Authority as was being done hitherto in the

Provided that if the Authority thinks it

International Airports Authority or the National

expedient to extend the period so fixed, it may

Airports Authority and tax exemption granted

extend the same up to maximum period of one

to provident Fund or Group Insurance and

year.

Superannuation Scheme would continue to be

(3) Where an officer or other employee of

applied to the Authority.

the International Airports Authority or the

(7) After the expiry of the period of one

National Airports Authority opts under sub-

year, or the extended period, as referred to in

section (2) not to be in the employment or

sub-section (2), all the officers and other

service of the Authority in which the

employees transferred and appointed to the

undertakings of the International Airports

THE AIRPORTS AUTHORITY OF INDIA ACT, 1994

Chap. VI

Authority, other than those opting not to be the

been previously approved by the Central

officers or employees of the Authority within

Government.

such period, shall be governed by the rules and

(2) Subject to the provisions of sub-section

regulations made by the Authority in respect of

(1), the form and manner in which any contract

the service conditions of the officers and other

shall be made under this Act shall be such as

employees of the said Authority.

may be specified by regulations.

19. Compulsory acquisition of land for

(3) No contract which is not in accordance

the Authority- Any land required by the

with the provisions of this Act and the

Authority for the discharge of its functions

regulations shall be binding on the Authority.

under this Act shall be deemed to be needed for

a public purpose and such land may be acquired

CHAPTER V

for the Authority under the provisions of the

FINANCE, ACCOUNTS AND AUDIT

Land Acquisition Act, 1894 or of any other

22. Power of Authority to charge fees,

corresponding law for the time being in force.

rent, etc.- The Authority may -

20. Contracts by the Authority- Subject

(i) With the previous approval of the Central

to the provisions of section 21, the Authority

Government charge fees or rent-

shall be competent to enter into and perform

any contract necessary for the discharge of its

(a) for the landing, housing or parking

functions under this Act.

of aircraft or for any other service

21. Mode of executing contracts on behalf

or facility offered in connection

of the Authority- (1) Every contract shall, on

with aircraft operations at any

behalf of the Authority, be made by the

airport, heliport or airstrip;

chairperson or such other member or such

Explanation - In this sub-clause

officer of the Authority as may be generally or

“aircraft” does not include an

specially empowered in this behalf by the

aircraft belonging to any armed

Authority and such contracts or class of

force of the Union and “aircraft

contracts as may be specified in the regulations

operations” does not include

shall be sealed with the common seal of the

operations of any aircraft belonging

Authority:

to the said force;

Provided that no contract exceeding such

(b) for providing air traffic services,

value or amount as the Central Government

ground safety services, aeronautical

may, from time to time, by order, fix in this

communications and navigational

behalf shall be made unless it has been

aids and meteorological services at

previously approved by the Authority:

any airports and at any aero-nautical

Provided further that no contract for the

communication station;

acquisition or sale of immovable property or

for the lease of any such property for a term

passengers and visitors at any

exceeding thirty years and no other contract

airport, civil enclave, heliport or

exceeding such value or amount as the Central

airstrip;

Government may, from time to time, by order,

(d) for the use and employment by

fix in this behalf shall be made unless it has

persons of facilities and other

THE AIRPORTS AUTHORITY OF INDIA ACT, 1994

Chap. VI

services provided by the Authority

(3) All moneys standing at the credit of the

at any airport, civil enclave, heliport

Authority which cannot immediately be applied

or airstrip;

as provided in sub-section (2), shall be -

(ii) with due regard to the instructions that

(a) deposited in the State Bank of India or

the Central Government may give to the

any such Scheduled bank or banks or

Authority, from time to time, charge

other public financial institutions subject

fees or rent from persons who are given

to such conditions as may, from time to

by the Authority any facility for carrying

time, be specified by the Central

on any trade or business at any airport,

Government; and

heliport or airstrip.

(b) invested in the securities of the Central

23. Additional capital and grant to the

Government or in such manner as may

Authority by the Central Government- The

be prescribed.

Central Government may, after due

Explanation- In this sub-section,

appropriation made by parliament by law in this

“Scheduled bank” has the same meaning

behalf,-

as in clause (e) of section 2 of the Reserve

(a) provide any capital that may be required

Bank of India Act, 1934.

by the Authority for the discharge of its

25. Allocation of surplus funds-(1) The

functions under this Act or for any

Authority may, from time to time, set apart

purpose connected therewith on such

such amounts as it thinks fit as a reserve fund or

terms and conditions as that Government

funds for the purpose of expanding existing

may determine;

facilities or services or creating new facilities

(b) pay to the Authority, on such terms and

or services at any airport, civil enclave, heliport

conditions as the Central Government

or airstrip or for the purpose of providing against

may determine, by way of loans or grants

any temporary decrease of revenue or increase

such sums of money as that Government

of expenditure from transient causes or for

may consider necessary for the efficient

purposes of replacement, or for meeting

discharge by the Authority of its

expenditure arising form loss or damage from

functions under this Act.

fire, cyclone, air-crash or other accident or for

meeting any liability arising out of any act or

24.Fund of the Authority and its

commission in the discharge of its functions

investment- (1) The Authority shall have

under this Act :

its own fund and all receipts of the Authority

shall be credited thereto and all payments of

Provided that without prejudice to the right

the Authority shall be made therefrom.

of the Authority to establish specific reserves

for one or more specific purposes, the Authority

(2) The authority shall have power, subject

shall also have the power to establish a general

to the provisions of this Act, to spend such

reserve:

sums as it thinks fit to cover all administrative

expenses of the Authority and on objects or for

Provided further that the sums set apart

purposes authorised by this Act and such sums

annually in respect of each or any of the specific

shall be treated as expenditure out of the fund

and general reserves and the aggregate at any

of the Authority.

THE AIRPORTS AUTHORITY OF INDIA ACT, 1994

Chap. VI

time of such sums shall not exceed such limits

(3) Subject to such limits as the Central

as may, from time to time, be fixed in that

Government may, from time to time, lay down,

behalf by the Central Government.

the Authority may borrow temporarily by way

of overdraft or otherwise such amounts as it

(2) After making provision for such reserve

may require for discharging its functions under

fund or funds and for bad and doubtful debts,

this Act.

depreciation in assets and all other matters

which are usually provided for by companies

28. Accounts and audit- (1) The Authority

registered and incorporated under the

shall maintain proper accounts and other relevant

Companies Act, 1956, the Authority shall pay

records and prepare an annual statement of

the balance of its annual net profits to the

accounts including the profit and loss account

Central Government.

and the balance-sheet in such form as may be

prescribed by the Central Government in

26. Submission of programme of

consultation with the Comptroller and Auditor-

activities and financial estimates- (1) The

General of India.

Authority shall, before the commencement of

each financial year, prepare a statement of the

(2) The accounts of the Authority shall be

programme of its activities during the

audited annually by the Comptroller and Auditor-

forthcoming financial year as well as financial

General of India and any expenditure incurred

estimate in respect thereof.

by him in connection with such audit shall be

payable by the Authority to the Comptroller and

(2) The statement prepared under sub-section

Auditor-General of India.

(1) shall, not less than three months before the

commencement of each financial year, be

(3) The Comptroller and Auditor-General

submitted for approval to the Central

of India and any person appointed by him in

Government.

connection with the audit of the accounts of the

Authority shall have the same rights and

(3) The statement and the financial estimates

privileges and authority in connection with such

of the Authority may, with the approval of the

audit as the comptroller and Auditor-General

Central Government, be revised by the Authority.

has in connection with the audit of Government

27. Borrowing powers of the Authority-

accounts and, in particular, shall have the right

(1) The Authority may, with the consent of the

to demand the production of books, accounts,

Central Government or in accordance with the

connected vouchers, documents and papers and

terms of any general or special authority given

inspect any of the offices of the Authority.

to it by the Central Government, borrow money

(4) The accounts of the Authority as certified

form any source by the issue of bonds,

by the Comptroller and Auditor-General of

debentures or such other instruments as it may

India or any other person appointed by him in

deem fit for discharging all or any of its

this behalf together with the audit report thereon

functions under this Act.

shall be forwarded annually to the Central

(2) The Central Government may guarantee

Government and that Government shall cause

in such manner as it thinks fit, the repayment of

the same to be laid before both Houses of

the principal and the payment of interest thereon

Parliament.

with respect to the loans borrowed by the

Authority under sub-section (1).

THE AIRPORTS AUTHORITY OF INDIA ACT, 1994

Chap. VI

CHAPTER VI

within the meaning of section 21 of the Indian

Penal Code.

MISCELLANEOUS

33.Protection of action taken in good

29. Submission of annual report- (1) The

faith-No suit, prosecution or other legal

Authority shall, as soon as may be after the end

proceeding shall lie against the Authority or

of each financial year, prepare and submit to the

any member or any officer or other employee

Central Government in such form as may be

of the Authority for anything which is in good

prescribed a report giving an account of its

faith done or intended to be done in pursuance

activities during that financial year and the report

of this Act or of any rule or regulation made

shall also give an account of the activities which

thereunder or for any damage sustained by

are likely to be undertaken by the Authority

any aircraft or vehicle in consequence of any

during the next financial year.

defect in any of the airports, civil enclaves,

(2) The Central Government shall cause

heliports,

airstrips,

aeronautical

such report to be laid before both Houses of

communication stations or other things

Parliament as soon as may be after it is

belonging to or under the control of the

submitted.

Authority.

30. Delegation- The Authority may, by

34.Custody and disposal of lost

general or special order in writing, delegate to

property-Subject to such regulations as the

the Chairperson or any other member or to any

Authority may make in this behalf, the

officer of the Authority, subject to such

Authority shall provide for securing the safe

conditions and limitations, if any, as may be

custody and restoration of any property which,

specified in the order, such of its powers and

while not in proper custody, is found on any

functions under this Act, (except the powers

premises belonging to the Authority or under

under section 42) as it may deem necessary.

its overall control or in any aircraft on any

such premises.

31. Authentication of orders and other

instruments of the Authority- All orders

35. Provisions relating to income-tax-

and decisions of the Authority shall be

For the purposes of the Income-tax Act, 1961

authenticated by the signature of the Chairperson

or any other enactment for the time being in

or any other member authorised by the Authority

force relating to income-tax or any other tax

in this behalf and all other instruments executed

on income, profits or gains, the Authority

by the Authority shall be authenticated by the

shall be deemed to be a company within the

signature of an officer of the Authority

meaning of the Income-tax Act, 1961 and shall

authorised by it in this behalf.

be liable to tax accordingly on its income,

profits and gains.

32. Officers and employees of the

Authority to be public servants-All officers

36.Power of the Authority to undertake

and employees of the Authority shall, while

certain works - The Authority may undertake

acting or purporting to act in pursuance of the

to carry out on behalf of any person any works

provisions of this Act or of any rule or regulation

or services or any class of works or services

made thereunder, be deemed to be public servants

THE AIRPORTS AUTHORITY OF INDIA ACT, 1994

Chap. VI

on such terms and conditions as may be agreed

date and to such person as may be specified in

upon between the Authority and the person

the order and the Authority shall be bound to

concerned.

comply with such direction :

Provided that before an order is made under

37.Power to issue directions- (1) The

this sub-section the Authority shall be given a

Authority or any officer specially authorised

reasonable opportunity of being heard in the

by it in this behalf may, from time to time, by

matter.

order, issue directions, consistent with the

provisions of the Aircraft Act, 1934, and the

(2) Where the management of any airport,

rules made thereunder, with respect to any of

heliport, airstrip, civil enclave or aeronautical

the matters specified in clauses (f), (h), (i),

communication station or any other agency

(j), (k), (m), (p), (qq) and (r) of sub-section

or department thereof is entrusted to any person

(2) of section 5 of that Act, to any person or

specified under sub-section (1) (hereafter

persons engaged in aircraft operations or using

referred to in this section as the authorised

any airport, heliport, airstrip or civil enclave,

person), the Authority shall cease to exercise

in any case where the Authority or the officer

and discharge all its powers and functions

is satisfied that in the interests of the security

under this Act in relation to such airport,

of India or for securing the security of the

heliport, airstrip, civil enclave or aeronautical

aircraft it is necessary to do so.

communication station or any other agency

or department thereof and such powers and

(2) Every direction issued under sub-section

functions shall be exercised and discharged

(1) shall be complied with by the person or

by the authorised person in accordance with

persons to whom such direction is issued.

the instructions, if any, which the central

(3) If any person wilfully fails to comply

Government may give to the authorised person

with any direction issued under this section,

from time to time:

he shall be punishable with imprisonment for

Provided that no such power or function

a term which may extend to six months or

as may be specified by the Central Government

with fine which may extend to five thousand

by a general or special order shall be exercised

rupees, or with both.

or discharged by the authorised person except

38.Power of the Central Government

with the previous sanction of the Central

to temporarily divest the Authority of the

Government.

management of any airport- (1) If, at any

(3) An order made under sub-section (1)

time, the Central Government is of opinion

shall, unless rescinded, be in operation for a

that in the public interest it is necessary or

period of six months from the date on which

expedient so to do, it may, by order, direct

the management of the airport, heliport, airstrip,

the Authority to entrust the administration,

civil enclave or aeronautical communication

management or similar other functions of any

station or any other agency or department

airport, heliport, airstrip, civil enclave,

thereof is entrusted to the authorised person:

aeronautical communication station, or any

other agency or department of any airport,

Provided that the Central Government may

heliport, airstrip, civil enclave or aeronautical

extend such period for a further period or

communication station with effect from such

periods not exceeding eighteen months.

THE AIRPORTS AUTHORITY OF INDIA ACT, 1994

Chap. VI

(4) During the operation of an order made

(7) Anything done or any action taken

under sub-section (1), it shall be competent

lawfully by the authorised person in relation to

for the Central Government to issue, from

any airport, heliport, airstrip, civil enclave or

time to time, such directions to the Authority

aeronautical communication station or any other

as are necessary to enable the authorised person

agency or department thereof during the period

to exercise the powers and discharge the

of operation of an order made under sub-section

functions of the Authority under this Act in

(1) shall be deemed to have been done or taken

relation to the airport, heliport, airstrip, civil

by the Authority and shall be binding on the

enclave or aeronautical communication station,

Authority.

or any other agency or department thereof the

39. Power of the Central Government to

management of which has been entrusted to

supersede the Authority-(1) If, at any time,

him and in particular to transfer any sum of

the Central Government is of opinion-

money from the fund of the Authority to the

authorised person for the management of the

(a) that on account of a grave emergency,

airport, heliport, airstrip, civil enclave or

the Authority is unable to discharge the

aeronautical communication station or any other

functions and duties imposed on it by or

agency or department thereof and every such

under the provisions of this Act; or

direction shall be complied with by the

(b) that the Authority has persistently made

Authority.

default in complying with any direction

(5) On the cesser of operation of any order

issued by the Central Government under

made under sub-section (1) in relation to any

this Act or in the discharge of the

airport, heliport, airstrip, civil enclave or

functions and duties imposed on it by or

aeronautical communication station, or any

under the provisions of this Act and as a

other agency or department thereof the

result of which default the financial

authorised person shall cease to exercise and

position of the Authority or the

perform the powers and functions of the

administration of any airport, heliport,

Authority under this Act in relation to such

airstrip, civil enclave or aeronautical

airport, heliport, airstrip, civil enclave or

communica-tion

station

has

aeronautical communication station or any

deteriorated; or

other agency or department thereof and the

Authority shall continue to exercise and

necessary in the public interest so to do,

perform such powers and functions in

accordance with the provisions of this Act.

the Central Government may, by notification

in the Official Gazette, supersede the Authority

(6) On the cesser of operation of any order

for such period, not exceeding six months, as

made under sub-section (1) in relation to any

may be specified in the notification:

airport, heliport, airstrip, civil enclave or

aeronautical communication station, or any

Provided that before issuing a notification

other agency or department thereof the

under this sub-section for the reasons men-

authorised person shall hand over to the Authority

tioned in clause (b), the Central Government

any property (including any sum of money or

shall give a reasonable opportunity to the

other asset) remaining with him in connection

Authority to show cause why it should not be

with the management of such airport, heliport,

superseded and shall consider the explana-tions

airstrip, civil enclave or aeronautical

and objections, if any, of the Authority.

communication station.

THE AIRPORTS AUTHORITY OF INDIA ACT, 1994

Chap. VI

(2) Upon the publication of a notification

earliest opportunity.

under sub-section (1) superseding the

40. Power of the Central Government to

Authority,-

issue directions- (1) Without prejudice to

(a) all the members shall, as from the date

the foregoing provisions of this Act, the

of supersession, vacate their offices as

Authority shall, in the discharge of its functions

such;

and duties under this Act, be bound by such

directions on questions of policy as the Central

(b) all the powers, functions and duties which

Government may give in writing to it from time

may, by or under the provisions of this

to time:

Act, be exercised or discharged by or on

behalf of the Authority, shall until the

Provided that the Authority shall, as far as

Authority is re-constituted under sub-

practicable, be given opportunity to express its

section (3), be exercised and discharged

views before any direction is given under this

by such person or persons as the Central

sub-section.

Government may direct;

(2) The decision of the Central Government

whether a question is one of policy or not shall

Authority shall, until the Authority is re-

be final.

constituted under sub-section (3), vest

(3) The central Government may, from time

in the Central Government.

to time, issue directions to the Authority

(3) On the expiration of period of

regarding the discharge of any functions to it

supersession specified in the notification issued

under clause (e) of sub-section (3) of section

under sub-section (1), the Central Government

12 and the Authority shall be bound to comply

may,

with such directions.

(a) extend the period of supersession for

41. Power to make rules- (1) The Central

such further term not exceeding six

Government may, by notification in the official

months, as it may consider necessary; or

Gazette, make rules for carrying out the

provisions of this Act.

(b) re-constitute the Authority by fresh

appointment and in such case the members

(2) In particular and without prejudice to the

who vacated their offices under clause

generality of the foregoing power, such rules

(a) of sub-section (2) shall not be deemed

may provide for-

disqualified for appointment:

(a) the period of notice as may be given by

Provided that the Central Government may,

the Central Government to terminate

at any time before the expiration of the period

the appoint-ment of any part-time

of supersession, whether as originally specified

member of the Authority under clause

under sub-section (1) or as extended under this

(b) of proviso to sub-section (1) of

sub-section, take action under clause (b) of this

section 5;

sub-section.

(b) the conditions of service of the members

(4) The Central Government shall cause a

of the Authority under sub-section (2)

notification issued under sub-section (1) and a

of section 5;

full report of any action taken under this section

and the circumstances leading to such action to

any member to resign his office under

be laid before both Houses of parliament at the

sub-section (3) of section 5;

THE AIRPORTS AUTHORITY OF INDIA ACT, 1994

Chap. VI

(d)

the provisions subject to which officers

(b)

the conditions of service and the

and other employees may be appointed

remuneration of officers and other

by the Authority and the category of

employees to be appointed by the

officers to be appointed after approval

Authority under sub-section (2) of

of the Central Government under the

section 10;

proviso to sub-section (1) of section

(c)

the construction of residential

10;

accommodation for the officers and

(e)

the provisions subject to which the

other employees appointed by the

Authority may manage the airports, civil

Authority under clause (e) of sub-section

enclaves

and

aeronautical

(3) of section 12;

communication stations under sub-

(d)

the storage or processing of goods in

section (1) of section 12;

any warehouse established by the

(f)

the manner in which the Authority may

Authority under clause (g) of sub-section

invest its funds under clause (b) of sub-

(3) of section 12 and the charging of

section (3) of section 24;

fees for such storage or processing;

(g)

the form in which the annual statement

(e)

the contracts or class of contracts which

of accounts shall be prepared by the

are to be sealed with the common seal of

Authority under sub-section (1) of

the Authority and the form and manner in

section 28:

which a contract may be made by the

Authority under sub-section (1) of

(h)

the form in which a report giving an

section 21;

account of its activities shall be prepared

and submitted by the Authority to the

(f)

the custody and restoration of lost

Central Government under sub-section

property and the terms and conditions

(1) of section 29; and

under which lost property may be restored

to the persons entitled thereto under

(i)

any other matter which is to be, or may

section 34;

be, prescribed.

(g)

the disposal of any lost property in cases

42. Power to make regulations- (1) The

where such property is not restored;

Authority may make regulations not inconsistent

with this Act and the rules made thereunder to

(h)

securing the safety of aircraft, vehicles

provide for all matters for which provision is

and persons using the airport or civil

necessary or expedient for the purpose of giving

enclave and preventing danger to the

effect to the provisions of this Act.

public arising from the use and operation

of aircraft in the airport or civil enclave;

(2) Without prejudice to the generality of

the foregoing power, such regulations may

(i)

preventing obstruction within the airport

provide for-

or civil enclave for its normal

functioning;

(a) the time and places of the meetings of

the Authority and the procedure to be

(j)

prohibiting the parking or waiting of any

followed for the transaction of business

vehicle of carriage within the airport or

including the quorum at such meetings

civil enclave except at places specified

under sub-section (1) of section 8;

by the Authority;

AIRCRAFT MANUAL (INDIA) VOLUME II (2003) - page 1