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AIRCRAFT MANUAL(INDIA)

VOLUME II

NATIONAL CONVENTIONS

(Revised Edition corrected upto 30 September, 2003)

NATIONAL CONVENTIONS

TABLE OF CONTENTS

CHAPTER PAGE

I The Air Corporations Act, 1953 (27 of 1953). . . . . . . 1

II The Air Corporations (Transfer of Undertakings and Repeal) Ordinance, 1994 (4 of 1994) . 29

III The Air Corporations (Transfer of Undertakings and Repeal) Act, 1994 (13 of 1994) . . 35

IV The International Airports Authority of India Act, 1971 (43 of 1971). . . . 41

V The National Airports Authority of India, 1985 (64 of 1985). . . . . 60

VI The Airports Authority of India Act, 1994 (55 of 1994) . . . . . 79

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

CHAPTER I

THE AIR CORPORATIONS ACT, 1953

(27 OF 1953)

1

CHAPTER I


TABLE OF CONTENTS

CHAPTER I

PRELIMINARYSECTIONS PAGES

1. Short title and commencement. . . . . . . . 4

2. Definitions . . . . . . . . . . 4

CHAPTER II

CONSTITUTION AND AND FUNCTIONS OF THE CORPORATIONS

3. Incorporation of the Corporations . . . . . . . 5

4. Constitution of the Corporations . . . . . . . 5

5. Conditions of Service of Directors . . . . . . . 6

6. Vacancy in Corporation not to invalidate proceedings. . . . 6

7. Functions of the Corporations. . . . . . . . 6

8. Appointment of officers and other employees of the Corporations . . 8

9. Corporations to act on Business Principles. . . . . . 8

CHAPTER III

FINANCE, ACCOUNTS AND AUDIT

10. Capital of the Corporations . . . . . . . . 8

11. Vesting of Properties in the Corporations. . . . . . 9

12. Funds of the Corporations . . . . . . . . 9

13. Powers of the Corporations in regard to expenditure . . . . 9

14. Corporations to assume obligations of Central Governmentin respect of certain matters. . . . . . . . 9

15. Accounts and Audit . . . . . . . . . 9

15A. Audit of Accounts of Companies formed by Corporations . . . 10

CHAPTER IV

ACQUISITION OF UNDERTAKINGS OF EXISTING AIR COMPANIES

16. Undertakings of existing Air Companies to vest in the Corporations . . 10

17. General effect of vesting of undertakings in the Corporations . . . 10

18. Reservation of Scheduled Air Transport Services to the Corporations . . 11

19. Licences to cease to be valid. . . . . . . . 12

20. Provisions respecting Officers and Employees of existing Air Companies . 12

2

THE AIR CORPORATIONS ACT, 1953 CHAP. I

SECTIONS PAGES

21. Duty to deliver up possession of property acquired anddocuments relating thereto . . . . . . . . 13

22. Duty of existing Air Companies to supply particulars . . . . 13

23. Right of Corporations to disclaim certain agreements. . . . 14

24. Transactions resulting in dissipation of assets . . . . . 14

25. Compensation to be given for compulsory acquisition of undertaking . . 15

26. Constitution of Special Tribunal to determine Compensation . . . 15

27. Mode of giving compensation. . . . . . . . 16

28. Winding up of existing company whose undertaking has been acquired . . 16

29. Authorisation under section 28 may contain certain directions . . . 17

CHAPTER V

AIR TRANSPORT COUNCIL

30. Constitution of Air Transport Council . . . . . . 17

31. Functions of the Air Transport Council . . . . . . 17

32. Staff of the Council . . . . . . . . . 18

33. Proceedings of the Council . . . . . . . . 18

CHAPTER VI

CONTROL OF CENTRAL GOVERNMENT

34. Power of Central Government to give directions. . . . . . 18

35. Prior approval of Central Government necessary in certain cases. . . . 19

36. Submission of Programme of Work for each year . . . . . 19

37. Submission of Annual Reports to Parliament . . . . . . 19

CHAPTER VII

MISCELLANEOUS

38. Corporations to act in mutual consultation. . . . . . . 20

39. Transfer of scheduled air transport services or assets from one Corporation to the other . 20

40. Corporations may delegate their powers. . . . . . . 20

41. Advisory and Labour Relations Committees . . . . . . 20

42. Meetings of the Corporations . . . . . . . . 20

43. Penalty for wrongful withholding of property . . . . . . 21

44. Power to make rules . . . . . . . . . 21

45. Power of Corporations to make regulations. . . . . . . 22

THE SCHEDULE . . . . . . . . . . 23

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CHAP. I THE AIR CORPORATIONS ACT, 1953

An Act to provide for the establishment ofAir Corporations, to facilitate the acquisitionby the Air Corporations of undertakingsbelonging to certain existing Air companiesand generally to make further and betterprovisions for the operations of air transportservices.

Be it enacted by Parliament as follows:-

(a) For the Statement of Object and Reasons,see Gazette of India, 21-3-1953, Pt. II, S.2Extra, page 148

CHAPTER I

PRELIMINARY

1. Short title and commencement.- (1)The Act may be called The Air CorporationsAct, 1953.

(2) It shall come into force on such date asthe Central Government may, by notificationa

in the Official Gazette, appoint.

(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.

The Act has been extended to UnionTerritories of Goa, Daman and Diu by the Goa,Daman and Diu (Laws) Regulation, 1962 (12 of1962), (w.e.f.1-2-1965), to Dadra and NagarHaveli by the Dadra and Nagar Haveli (Laws)Regulation, 1963 (6 of 1963), (w.e.f. 1-7-1965);and to Pondicherry by the Pondicherry (Laws)Regulation, 1963(7 of 1963), (w.e.f. 1-10-

1963).- Goa is now a State - See Goa, Damanand Diu Reorganisation Act (18 of 1987),S.3(30-5-1987).

2. Definitions.— In this Act, unless thecontext otherwise requires -

(i) “aircraft” means any machine which canderive support in the atmosphere fromreactions of the air and includes balloons,whether fixed or free, airships, kites,gliders and flying machines;

(ii) “air transport service” means a servicefor the transport by air of persons, mailsor any other thing, animate or inanimate,for any kind of remuneration whatsoever,whether such service consists of a singleflight or a series of flights;

(iii) “associate” in relation to either of thecorporations means any subsidiary ofthe corporation or any person with whomthe corporation has made an agreementin accordance with clause(h) of sub-section (2) of section 7;

(iv) "Corporations" means "Indian Airlines"and "Air India International" establish-ed under section 3, and “Corporation”means either of the Corporations;

(v) the expression “existing air companies”means the Air India Ltd., the Air Servicesof India Ltd., the Airways (India) Ltd.,the Bharat Airways Ltd., the DeccanAirways Ltd., the Himalayan Aviation

CHAPTER I


(27 OF 1953)

4


as per S.7(I) of the Air Corporations (Amendment)Act, 1962 (17 of 1962), S.7(2) of the Amendment Act(17 of 1962) provides as under :-

“(2) The change of name of “Air IndiaInternational” by sub-section (1)shall not affect any rights andobligations of that Corporation orrender defective any legalproceeding by or against it, and anylegal proceedings which might havebeen continued or commenced byor against that Corporation by itsformer name may be continued orcommenced by or against it, by itsnew name.”

4. Constitution of the Corporation.—a[(1) The general superintendence, directionand management of the affairs and business ofeach of the Corporations shall vest in a Boardof directors which may exercise all such powersand do all such acts and things as may beexercised or done by the Corporation underthis Act.

(1-A) The Board of directors shall consistof a Chairman to be appointed by the CentralGovernment, and not less than eight and notmore than fourteen other directors to beappointed by the Central Government and theChairman or any other director may be requiredto render whole time or part-time service as theCentral Government may direct.

Provided that —

(a) that same person may be appointed to bethe Chairman of both the Corporationsor Chairman of one and director of theother;

(b) the same persons may be appointed to bedirectors of both the Corporations.]

(2) Before appointing a person to be ab[director] of either of the Corporations, theCentral Government shall satisfy itself thatperson will have no such financial or other

Ltd., the Indian National Airways Ltd.,the Kalinga Airlines and the Air IndiaInternational Ltd. and “existing aircompany” means any of the existing aircompanies;

(vi) “prescribe” means prescribed by rulesmade under this Act;

(vii) “regulations” means regulations madeby either of the Corporations undersection 45;

(viii) “Scheduled air transport service” meansan air transport service under-takenbetween the same two or more placesand operated according to a publishedtime table or with flights so regular orfrequent that they constitute arecognisably systematic series, eachflight being open to use by members ofpublic;

(ix) “Tribunal” means the Tribunalconstituted under section 25.

CHAPTER II

CONSTITUTION AND FUNCTIONSOF THE CORPORATIONS

3. Incorporation of the Corporations—(1) With effect from such date as the CentralGovernment may, by notificationa in the OfficialGazette, appoint, there shall be established twoCorporations to be known as “Indian Airlines”and “Air India International”b.

(2) Each of the Corporations aforesaid shallbe a body corporate having perpetual successionand a common seal with power, subject to theprovisions of this Act, to acquire and holdproperty, and may by its name sue and be sued.

(a) The date appointed is 15-6-1953: see S.R.O. 1125-Gaz. of Ind. 12-6-1953,Pt. II.S.3, Ext, p.1935.

(b) Re-named as ‘Air India’ w.e.f. 8-6-1962, see S.O.1676, Gaz. of Ind., 23-5-1962, Pt. II, S.3(ii), p.2019,

5


interest as is likely to affect prejudicially theexercise or performance by him of his functionsas a b[director] of the Corporation and theCentral Government shall also, satisfy itselffrom time to time with respect to everyb[director] of the Corporation that he has nosuch interest; and any person who is, or whomthe Central Government proposes to appointand who had consented to be a b[director] of theCorporation shall, whenever required by theCentral Government so to do, furnish to it suchinformation as the Central Governmentconsiders necessary for the performance of itsduties under this sub-section.

(3) A b[director] of either of theCorporations who is in anyway directly orindirectly interested in a contract made orproposed to be made by the Corporation, or inany contract made or proposed to be made by anassociate of the Corporation which is broughtup for consideration by the Corporation, shall,as soon as possible after the relevantcircumstances have come to his knowledgedisclose the nature of his interest at a meetingof the Corporation; and the disclosure shall berecorded in the minutes of the Corporation andthe b[director] shall not take any part after thedisclosure in any deliberation or decision ofthe Corporation with respect to that contract.

(4) During the temporary absence of theChairman of either of the Corporations, theCentral Government may appoint anotherperson, whether a b[director] of the Corporationor not, to act as the Chairman.

(5) Save as otherwise provided in this section,nothing contained in this Act shall be deemed todisqualify the b[managing director] of either ofthe Corporations from being appointed to be ab[director] thereof.

(a) Original sub-section (1) substituted by the AirCorporations (Amendment) Act (49 of 1971), S.2 (1-2-1972).

(b) Word “member” in sub-sections (2), (3), (4) and (5)and the words “ General Manager” in sub-section

(5), substitued, Ibid.

5. Conditions of service of members.—(1) The Chairman and other a[directors] of eachof the Corporations shall ordinarily be entitledto hold office for the period specified in theorder of appointment, unless the appointmentis terminated earlier by the Central Government.

Provided that any a[director] may at anytime by notice in writing addressed to the CentralGovernment resign his office.

(2) Subject to the previous approval of theCentral Government, each of the Corporationsshall pay to every a[director] thereof in respectof his office as such, b[such remuneration byway of salary, allowances,] fees or otherwise asmay be determined by the Corporation and tothe Chairman in respect of his office as such,such remuneration, whether in addition to theremuneration to which he may be entitled inrespect of his office as a a[directors] orotherwise, as it may similarly determine.

(a) Word “members” in sub-section (1) and word“member” in the proviso to sub-section (1) and sub-section (2), substituted by Air Corporations(Amendment) Act (49 of 1971),S.3(1-2-1972).

(b) Substituted for words “such remuneration by way ofallowances”, ibid,S.3(ii)(b) (1-2-1972).

6. Vacancy in Corporation not toinvalidate proceedings.— No act orproceeding of either of the Corporations shallbe deemed to be invalid by reason merely of anyvacancy in, or any defect in the Constitution of,the Corporation.

7. Functions of the Corporation.- (1)Subject to the rules, if any, made by the CentralGovernment in this behalf, it shall be thefunction of each of the Corporations to providesafe, efficient, adequate, economical andproperly co-ordinated air transport services,whether internal or international or both, andthe Corporations shall so exercise their powers

6


as to secure that the air transport services aredeveloped to the best advantage and, in particular,so exercise those powers as to secure that theservices are provided at reasonable charges.

(2) Without prejudice to the generality ofthe powers conferred by sub-section (1), eachof the Corporations shall, in particular, havepower-

(a) to operate any air transport service, orany flight by aircraft for a commercialor other purpose, and to carry out allforms of aerial work;

(b) to provide for the instruction and trainingin matters connected with aircraft orflight by aircraft of persons employed,or desirous of being employed, either bythe Corporation or by any other person;

(c) with the previous approval of the CentralGovernment, to promote anyorganisation outside India for the purposeof engaging in any activity of a kindwhich the Corporation has power to carryon;

(d) to acquire, hold or dispose of anyproperty, whether movable orimmovable, or any air transportundertaking;

(e) to repair, overhaul, reconstruct,assemble or recondition aircraft, vehiclesor other machines and parts, accessoriesand instruments thereof or therefore andalso to manufacture such parts, accesso-ries and instruments, whether the aircraft,vehicles or other machines are owned bythe Corporation or by any other person;

(f) to enter into and perform all suchcontracts as are calculated to further theefficient performance of its duties andthe exercise of its powers under thisAct;

(g) to perform any functions as agent or

contractor in relation to an air transportservice operated by any other person;

(h) with the previous approval of the CentralGovernment, to enter into agreementswith any person engaged in airtransportation with a view to enablingsuch person to provide air transportservices on behalf of or in associationwith the Corporation;

(i) with the previous approval of the CentralGovernment, to determine and levy faresand freight rates and other charges for orin respect of the carriage of passengersand goods on air transport servicesoperated by it;

a[[ii] to make such grants as it thinks fit ascontribution or donation, in furtheranceof the interests of the Corporation, toany fund established for a benevolent orcharitable purpose:

Provided that nothing in this clauseshall be construed as empoweringthe Corporation to make any suchgrant to any political party or forany political purpose to anyindividual or body;]

(j) to take such steps as are calculated toextend the air transport services providedby the Corporation, whether within orwithout India, including the developmentof feeder services and the improvementof the types of aircraft used in airtransport services;

(k) to take such steps as are calculated topromote the interests of the Corporationor to improve the services theCorporation may provide, b[includingprovision of catering, hotels, restaurants,rest rooms,] goods-shed, ware-housesand transport by land or water inconnection with any air transport serviceor any other amenity or facility;

7


c[(kk) to form one or more companies underthe Companies Act, 1956 to further theefficient performance of its duties andthe exercise of its powers under thisAct:

Provided that the paid up sharecapital of every company so formedshall be held exclusively by theCorporation;]

(l) to take all such steps as may be necessaryor convenient for , or may be incidentalto , the exercise of any power, or thedischarge of any function or dutyconferred or imposed on it by this Act.

(3) Nothing contained in this section shallbe construed as —

(a) authorising the disregard by theCorporation of any law for the time beingin force, or

(b) authorising any person to institute anyproceeding in respect of a duty or liabilityto which either of Corporations or itsemployees would not otherwise besubject.

(a) Clause (ii) inserted by the Air Corporations(Amendment) Act (49 of 1971), S.4(1-2-1972).

(b) Words “including provision of catering, rest rooms”in cl.(k) substituted, ibid.

(c) Clause (kk) inserted, ibid.

8. Appointment of officers and otheremployees of the Corporation.— (1) For thepurpose of enabling it efficiently to dischargeits functions under this Act, each of theCorporations shall appoint a a[managingdirector] and, subject to such rules as may beprescribed in this behalf, may also appoint suchnumber of other officers and employees as itmay think necessary:

Provided that the appointment of the a[managing director] and such other categoriesof officers as may be specified after

consultation with the Chairman in such rulesshall be subject to the approval of the CentralGovernment.

(2) Subject to the provisions of section 20,every person employed by each of theCorporations shall be subject to such conditionsof service and shall be entitled to suchremuneration and privileges as may bedetermined by regulations made by theCorporation by which he is employed.

(3) Neither the a[managing director] norsuch other employee of either of theCorporations as may be specified in this behalfby the Central Government shall, during hisservice in the Corporation, be employed in anycapacity whatsoever or directly or indirectlyhave any interest in any air transport undertakingother than an undertaking of either of theCorporations, or in any other undertaking whichis interested in any contract with either of theCorporations.

(a) Substituted for the words ‘General Manager’ by theAir Corporation (Amendment) Act (49 of 1971), S.5(1-2-1972).

9. Corporations to act on businessprinciples.— In carrying out any of dutiesvested in it by this Act, each of the Corporationsshall act so far as may be on business principles.

CHAPTER III


10.Capital of the Corporations.— (1) Allnon - recurring expenditure incurred by theCentral Government for, or in connection with,each of the Corporations up to the date ofestablishment of that Corporation and declaredto be capital expenditure by that Government,shall be treated as capital provided by the CentralGovernment to that Corporation.

(2) The Central Government may provide anyfurther capital that may be required by either ofCorporations for the carrying on the business ofthe Corporation or for any purpose connected

8


therewith on such terms and conditions as theCentral Government may determine.

(3) Each of Corporations may, with theconsent of the Central Government, or inaccordance with the terms of any generalauthority given to it by the Central Government-

(a) borrow money for all or any of thepurposes of the Corporation, and

(b) secure the payment of money borrowedby it or any interest thereon by the issueof bonds, debentures, debenture-stockor any mortgage or charge or other secur-ity on the undertaking of the Corporationor any part of it or on any of its properties.

11.Vesting of properties in theCorporation.— All properties, assets and fundsowned or acquired by the Central Government forthe purpose of Indian Airlines or, as the case maybe, Air India International before the establishmentof those Corporations shall, on such establishment,vest in the Corporation concerned.

12.Funds of the Corporation.— (1) Eachof the Corporations shall have its own funds andall receipts of the Corporations shall be carriedthereto and all payments for the Corporationsshall be made therefrom.

(2) Each of the Corporations may keep ina[account] with any scheduled bank as definedin section 2 of the Reserve Bank of India, Act,1934 or in any other bank approved by theCentral Government in this behalf a sum ofmoney not exceeding such amount as may beprescribed, but any moneys in excess of thesaid sum shall be deposited in the Reserve Bankof India or with the agents of the Reserve Bankof India or invested in such manner as may beapproved by the Central Government.

(a) Substituted for the words “current account” by the AirCorporations (Amendment) Act (49 of 1971), Section6 (1-2-1972).

13.Powers of the Corporations in regardto expenditure.— Each of the Corporations

shall have power, subject to the provisions ofthis Act, to spend such sums as it thinks fit onobjects or for purposes authorised by this Act andsuch sum shall be treated as expenditure out of thefunds of that Corporation.

14.Corporations to assume obligations ofCentral Government in respect of certainmatters.— (1) All obligations incurred, allcontracts entered into and all matters and thingsengaged to be done by, with, or for the CentralGovernment for any of the purposes of this Actbefore the establishment of either of theCorporations shall be deemed to have beenincurred, entered into or engaged to be done by,with or for Indian Airlines or, as the case may be,Air India International according as the obligationscontracts, matters and things relate to the purposesof the former Corporation or the latter.

15.Accounts and audit.— (1) TheCorporations shall maintain proper accounts andother relevant records and prepare annualstatement of accounts including the profit andloss account and the balance sheet in such form asmay be prescribed by the Central Government inconsultation with the Comptroller and AuditorGeneral of India.

(2) The accounts of the Corporations shall beaudited annually be the Comptroller and AuditorGeneral of India and any expenditure incurred byhim in connection with such audit shall be payableby the Corporations to the Comptroller andAuditor General of India.

(3) The Comptroller and Auditor General ofIndia and any person appointed by him in connectionwith the audit of the accounts of the Corporationsshall have the same rights and privileges andauthority in connection with such audit as theComptroller and Auditor-General has inconnection with the audit of Government accountsand in particular, shall have the right to demand theproduction of books, accounts, connectedvouchers and other documents and papers and toinspect any of the officers of the corporations.

9


(4) The accounts of the Corporations ascertified by the Comptroller and Auditor Generalof India or any other person appointed by him inthis behalf together with the audit report thereonshall be forwarded annually to the CentralGovernment and the Government shall cause thesame to be laid before both Houses of Parliament.

a[15A. Audit of accounts of companiesformed by Corporations. — (1)Notwithstanding anything contained in theCompanies Act, 1956, the auditor of anycompany formed by either of the Corporationsunder clause (kk) of sub-section (2) of section7 shall be appointed or re-appointed by theCorporation concerned on the advice of theComptroller and Auditor General of India.

(2) Save as otherwise provided in sub-section (1), in addition to the provisionscontained in the Companies Act, 1956, relatingto the audit of the accounts of any company, thefollowing provisions shall apply to the audit ofthe accounts of any company referred to in sub-section (1), namely:—

(i) the Comptroller and Auditor General ofIndia shall have power to conduct asupplementary or test audit of thecompany’s accounts by such person orpersons as he may authorise in thisbehalf: and for the purposes so authorised,on such matters by such person or personsand in such form as the Comptroller andAuditor General may, by general orspecial order, direct;

(ii) the author appointed or re-appointedunder sub-section (1) shall submit a copyof his audit report to the Comptrollerand Auditor General of India who shallhave the right to comment upon, orsupplement, the audit report in suchmanner as he may think fit;

(iii) any such comments upon, or supplementto, the audit report shall be placed before

the annual general meeting of thecompany at the same time and in thesame manner as the audit report.]

(a) Inserted by the Air Corporation (Amendment) Act (49of 1971), S.7(1-2-1972).

CHAPTER IV

ACQUISITION OFUNDERTAKINGS OF EXISTING

AIR COMPANIES

16.Undertakings of existing aircompanies to vest in the Corporations.—On such date as the Central Government may,by notification a in the Official Gazette, appoint(hereinafter referred to as “the appointed date”),there shall be transferred to and vest in -

(a) Indian Airlines, the undertaking of allthe existing air companies (other thanAir India International Ltd.), and

(b) Air India International, the undertakingof the Air India International Ltd.

(a) The day appointed is 1-8-1953; see S.R.O. 1262 inGaz. Ind., 1953, Pt. II, S.3, page 931.

17.General effect of vesting ofundertakings in the Corporations.— (1) Theundertaking of each of the existing aircompanies which is transferred to and whichvests in either of the Corporations under Section16 shall, subject to the provisions of section22, be deemed to include all assets, rights,powers, authorities and privileges and allproperty, movable and immovable, includinglands, works, workshops, aircraft, cash balances,reserve funds, investment and book debts andall other rights and interests arising out of suchproperty as were immediately before theappointed date in the ownership, possession orpower of the existing air company in relation tothe undertaking, whether within or without India,and all books of account and documents relatingthereto, and subject to the provisions containedin Section 22, shall also be deemed to include

10


all borrowings, liabilities and obligations ofwhatever kind then subsisting of the existing aircompany in relation to the undertaking.

(2) Any lands works, aircraft, assets or otherproperty vesting in the Corporation under sub-section (1) shall by force of such vesting befreed and discharged from all trusts, obligations,mortgages, charges, liens and otherencumbrances affecting it, and any attachment,injunction or any other order of a Courtrestricting the use of such property in any mannershall be deemed to have been withdrawn.

(3) Subject to the other provisions containedin this Act all contracts and workingarrangements which are subsisting immediatelybefore the appointed date and affecting any ofthe existing air companies shall, in so far asthey relate to the undertaking of that company,cease to have effect or be enforceable againstthat company or any person who was surety orhad guaranteed the performance thereof, andshall be of as full force and effect against or infavour of the Corporation in which theundertaking has vested by virtue of this Act andenforceable as fully and effectually as if, insteadof the company, the Corporation had beennamed therein or had been a party thereto.

(4) Subject to the other provisions containedin this Act, any proceeding or cause of actionpending or existing immediately before theappointed date by or against any of the existingair companies in relation to its undertaking mayas from that date be continued and enforced byor against the Corporation in which it has vestedby virtue of this Act as it might have beenenforced by or against that company if this Acthad not been passed, and shall cease to beenforceable by or against that company, itssurety or guarantor.

18.Reservation of scheduled air trans-port services to the Corporations.— (1)After the appointed date, it shall not be lawfulfor any person other than the Corporations or

their associates to operate any scheduled airtransport service from to, in or across India:

Provided that nothing in this section shallrestrict the right of any person,-

(a) for the purpose of any air transportundertaking of which the principal placeof business is in any country outsideIndia, to operate an air transport servicein accordance with the terms of anyagreement for the time being in forcebetween the Government of India andthe Government of that country; or

(b) to carry passengers for the sole purposeof instructing them in flying or on dutiesof air-crews; or

(c) to carry passengers or goods for thesole purpose of providing an airambulance service or a rescue or reliefservice during any natural calamity; or

(d) to carry passengers or goods for thesole purpose of providing joy ridesconsisting of flights operated from andto the same aerodrome or place withoutany intermediate landing or for thepurpose of aerial survey, fire fighting,crop-dusting, locust control or any otheraerial work of a similar nature; a[or

(e) to operate, with the previous permissionof the Central Government for suchperiod and subject to such terms andconditions as that Government maydetermine, any scheduled air transportservice as aforesaid which is not providedby either of the Corporations or theirassociates.]

(2) Any person who operates a scheduled airtransport service in contravention of theprovisions of this section shall be liable inrespect of each offence to a fine which mayextend to one thousand rupees, or toimprisonment which may extend to threemonths, or to both.

11


Explanation.— The operation of each flightshall constitute a separate offence for thepurposes of this section.

(a) Inserted by the Air Corporations (Amendment) Act,1962 (17 of 1962), S.2 (30-3-1962).

19.Licences to cease to be valid.— Witheffect from the appointed date, all licencesgranted under the Indian Aircraft Act, 1934 (22of 1934) or under the rules made thereunderfor the operation of scheduled air transportservices shall cease to be valid.

20.Provisions respecting officers andemployees of existing air companies.— (1)Every officer or other employee of an existingair company (except a director, managing agent,manager or any other person entitled to managethe whole or a substantial part of the businessand affairs of the company under a specialagreement, employed by that company prior tothe first day of July, 1952, and still in itsemployment immediately before the appointeddate shall, in so far as such officer or otheremployee is employed in connection with theundertaking which has vested in either of theCorporations by virtue of this Act, become asfrom the appointed date an officer or otheremployee, as the case may be, of the Corporationin which the undertaking has vested and shallhold his office or service therein by the sametenures, at the same remuneration and upon thesame terms and conditions and with the samerights and privileges as to pension and gratuityand other matters as he would have held thesame under the existing air company if itsundertaking had not vested in the Corporationand shall continue to do so unless and until hisemployment in the Corporation is terminatedor until his remuneration, terms or conditionsare duly altered by the Corporation:

Provided that nothing contained in thissection shall apply to any officer or otheremployee who has, by notice in writing given tothe Corporation concerned prior to such date as

may be fixeda by the Central Government bynotification in the Official Gazette, intimatedhis intention of not becoming an officer orother employee of the Corporation.

(2) Notwithstanding anything contained insub-section (1), the Central Government maydirect either of the Corporations in which theundertaking of any existing air company hasvested to take into its employment any officeror other employee who was employed by theexisting air company prior to the first day ofJuly, 1952, and who has been discharged fromservice in the company on or after the said datefor reasons which, in the opinion of the CentralGovernment appear to be inadequate for thepurpose, and where the Central Governmentissues any such direction, the provisions ofsub-section (1) shall apply to such officer orother employee as they apply to any officer orother employee referred to therein.

(3) As from the appointed date the trusteesof the provident funds and pension funds orpension schemes of each of existing aircompanies shall transfer to the Corporationconcerned the balances lying to the credit ofeach of the employees whose services havebeen transferred to that Corporation by virtueof this Act and also all other balances of thefunds or schemes as shall remain after satisfyingall demands and liabilities, and thereupon thetrustees shall be discharged of the trusts byvirtue of this Act.

(4) Notwithstanding anything contained inthis Act or in the Indian Companies Act, 1913or in any other law for the time being in force orin any agreement entered into by an existing aircompany or in the articles of association of anysuch company, no director, managing agent,manager or any other person entitled to managethe whole or a substantial part of the businessand affairs of the company shall be entitled toany compensation against any existing aircompany or against either of the Corporations

12


for the loss of office or for the prematuretermination of any contract of managemententered into by him with any existing air companyand where any existing air company has, afterthe first day of July, 1952 , and before thecommencement of this Act, paid to any suchperson as is referred to in this sub-section anysum by way of compensation to which the personreceiving such compensation would not havebeen entitled if this sub-section were in forceat the time of such payment, the existing aircompany shall be entitled to claim refund ofany sum so paid.

(a) 10th of July 1953 was fixed as the date prior towhich the notice referred to in the Proviso mightbe given: see S.R.O. 1170 in Gaz. Ind., 1953,Pt. II-S.3,p.882.

21. Duty to deliver up possession ofproperty acquired and documents relatingthereto.— (1) Where any property has vestedin either of the Corporations under section 16,every person in whose possession or custodyor under whose control the property may be,shall deliver up the property to the Corporationconcerned forthwith.

(2) Any person who on the appointed datehas in his possession or under his control anybooks, documents or papers relating to anyundertaking which has vested in either of theCorporations under this Act and which belongto an existing air company or would have sobelonged if its undertaking had not so vestedshall be liable to account for the said books,documents and papers to the Corporation inwhich the undertaking has vested and shall deliverthem up to the Corporation or to such person asthe Corporation may direct:

Provided that the Corporation shall producefor inspection by such companies or theirauthorized representatives the books of accountand documents as relate to the affairs of thecompany for any period prior to the appointeddate.

(3) Without prejudice to the other provisionscontained in the section, it shall be lawful forthe Corporation and the Central Government totake all necessary steps for securing possessionof all properties which have vested in theCorporation under section 16.

22.Duty of existing air companies tosupply particulars — (1) Where theundertaking of an existing air company vests ineither of the Corporations under this Act, theexisting air company shall within thirty daysfrom the appointed date of within such furthertime as the Corporation concerned may allowin any case, supply to the Corporation particularsof book debts and investments belonging to andall liabilities and obligations of the companysubsisting immediately before any appointeddate, and also of all agreements entered into bythe existing air company and in force on theappointed date, including agreements, whetherexpress or implied, relating to leave, pension,gratuity and other terms of service of any officeror other employees of the existing air company,under which by virtue of this Act theCorporations have or will or may have liabilitiesexcept such agreements as the Corporationmay exclude either generally or in any particularcase from the operation of this sub-section.

(2) If any existing air company fails to supplyto the Corporation concerned particulars ofsuch book debts, liabilities and agreementswithin the time allowed to it for the purposeunder sub-section (1), nothing contained in thisAct shall have effect so as to transfer any suchbook debts, liabilities and agreements to, or tovest the same in, the Corporation.

(3) Either Corporation may be notice inwriting within a period of a[six months] aftersubmission of the particulars referred to insub-section (1) intimate to the existing aircompany submitting the particulars that such ofthe book debts and investments as are specified

13


in the notice are not included in the propertiesvesting in the Corporation whereupon thecompensation provided by section 25 of thisAct and the Schedule thereto shall be reducedby the amount of such excluded book debts andinvestments but the right of such existing aircompany to recover and retain such excludedbook debts shall remain unaffected by this Act.

[a] Substituted for the words “ninety days” by the AirCorporations (Amendment) Act, 1954 (10 of 1954), S.2 (w.r.e.f. 30-1-1954)

23.Right of Corporations to disclaimcertain agreements— (1) Where it appears toeither of the Corporations that the making ofany such agreements as is referred to in section22 under which the Corporation has or will haveor may have liabilities was not reasonablynecessary for the purposes of the activities ofthe existing air company or has not been enteredinto in good faith, the Corporation may, withina[one year] from the appointed date, apply to theTribunal for relief from such agreement, andthe Tribunal, if satisfied after making suchinquiry into the matter as it thinks fit that theagreement was not reasonably necessary forthe purposes of the activities of the existing aircompany or has not been entered into in goodfaith, may make an order cancelling or varyingthe agreement on such terms as it may think fitto impose and the agreement shall thereuponhave effect accordingly.

(2) All the parties to the agreement which issought to be cancelled or varied under thissection shall be made parties to the proceeding.

[a] Substituted for the words” six months” by the AirCorporations (Amendment) Act, 1954 (10 of 1954) S.4 (w.r.e.f. 30-1-1954).

24.Transactions resulting in dissipationof assets— (1) This section shall apply whereany existing air company has, after the first dayof July, 1952 and before the appointed date,—

(a) made any payment to any person without

consideration or for an inadequateconsideration;

(b) sold or disposed of any of its propertiesor right without consideration or for aninadequate consideration;

(c) acquired any property or right for anyexcessive consideration;

(d) entered into or varied any agreement soas to require an excessive considerationto be paid or given by the company;

(e) entered into any other transaction ofsuch an onerous nature as to cause a lossto or impose a liability on the companyexceeding any benefit accruing to thecompany; or

(f) sold or otherwise transferred any aircraft,equipment, machinery or other propertyof book value exceeding rupees tenthousand;

and the payment, sale, disposal, acquisitionagreement or variation there of, or othertransaction or transfer was not reasonablynecessary for the purposes of the company orwas made with an unreasonable lack of prudenceon the part of the company regard being had ineither case to the circumstances at the time.

(2) Either of the Corporations may, in thecase of any such existing air company as isreferred to in sub-section (1) the undertakingof which was vested in the Corporation underthis Act, at any time within a[one year] from theappointed date, apply for relief to the Tribunalin respect of any transaction to which in theopinion of the Corporation this section applies,and all parties to the transaction shall, unlessthe Tribunal otherwise directs, be made partiesto the application.

(3) Where the Tribunal is satisfied that atransaction in respect of which an application is

14


made is a transaction to which this sectionapplies, then, unless the Tribunal is also satisfiedthat the transaction was a proper transactionmade in the ordinary course of business regardbeing had to the circumstances at the time andwas not in any way connected with any provisionmade by this Act or with any anticipation of themaking of any such provision, the Tribunal shallmake much order against any of the parties tothe application as the Tribunal thinks just havingregard to the extent to which those partieswhere respectively responsible for thetransaction of benefited from it and all thecircumstances of the case.

(4) Where an application is made to theTribunal under this section in respect of anytransaction and the application is determined infavour of the Corporation the Tribunal shallhave exclusive jurisdiction to determine anyclaims outstanding in respect of the transaction.

[a] Substituted for the words “six months” by the AirCorporations (Amendment) Act, 1954 (10 of 1954.) S.4 (w.r.e.f. 30-1-1954).

25.Compensation to be given compulsoryacquisition of undertaking— (1) Where theundertaking of any of the existing air companieshas vested in either of the Corporations underthis Act, compensation shall be given by theCorporation to that company in the mannerspecified in section 27 and the amount of suchcompensation shall be determined in accordancewith the principles specified in the Schedule tothis Act.

(2) Not with standing that separate valuationsare calculated under the principles specified inthe Schedule in respect of the several mattersreferred to therein, the amount of compensationto be given shall be deemed to be a singlecompensation to be given for the undertaking asa whole.

(3) The amount of the compensation to begiven in accordance with the aforesaid principles

shall be determined by the Corporation and ifthe amount so determined is approved by theCentral Government, it shall be offered to theexisting air company in full satisfaction of thecompensation payable under this Act, and if theamount so offered is not acceptable to theexisting air company, it may within such time asmay be prescribed for the purpose have thematter referred to a Tribunal constituted forthis purpose by the Central Government fordecision.

26.Constitution of special Tribunal todetermine compensation.— (1) The Tribunalto be constituted under section 25 shall consistof three members appointed by the Centralgovernment, one of whom shall be a person whois or has been a Judge of a High Court or hasbeen a Judge of the Supreme Court.

(2) The Tribunal may for the purpose ofdeciding any matter under this Act choose oneor more persons possessing special knowledgeof any matter relating to the case under inquiryto assist it in determining any compensationwhich is to be given under this Act.

(3) The Tribunal shall have the powers of acivil court while trying a suit under the Code ofCivil Procedure, 1908 in respect of thefollowing matters:

(a) summoning and enforcing the attendanceof any person and examining him onoath;

(b) requiring the discovery and productionof documents;

(c) receiving evidence on affidavits;

(d) issuing commissions for the examinationof witnesses or documents.

(4) The Tribunal shall by a majority of itsnumber regulate its own procedure and decideany matter within its competence and may reviewits decision in the event of there being a mistake

15


on the face of the record or correct anyarithmetical or clerical error therein but subjectthere to the decision of the Tribunal on anymatter within its jurisdiction shall be final andshall not be called in question in any court.

27.Mode of giving compensation— (1)When the amount of compensation to be givenunder this Act to an existing air company hasbeen determined under section 25, theCorporation shall give to the company one ormore bonds of the face value of the amount ofcompensation so determined less such portionthere of as is payable in cash under this section.

(2) Out of the compensation to be given toeach of the existing air companies under thisAct, there shall be paid in cash—

(a) ten per cent. of the amount ofcompensation payable to each of suchcompanies (Which percentage shall beuniformly applicable to all existing aircompanies); or

(b) the amount borrowed by any suchcompany from any bank and outstandingon the 31st day of December, 1952 oron the appointed date, whichever amountis less; or

(c) an amount equal to the cash of any suchcompany, including cash in deposit witha bank, which has vested in theCorporation under this Act;

whichever of the amount specified in clauses(a), (b) and (c) is the greatest.

(3) The bonds aforesaid shall be issued bythe Corporation with the previous approval ofthe Central Government and shall be negotiableand shall be redeemed at their face value by theCorporation concerned on the demand of theholder within one hundred and eighty days afterthe expiry of five years from the date of theirissue and the redemption of the bonds andpayment of all interest there on shall beguaranteed by the Central Government.

(4) If within the expiry of the said period ofone hundred and eighty days, the holder of anybond fails to require payment of its face valuefrom the Corporation concerned, the bond shallcease to the redeemable at the option of theholder:

Provided that in any case the Corporationmay by notice require the holder of the bond toaccept its face value in cash at any time whetherbefore of after the expiry of the period of fiveyears aforementioned.

(5) The holder of the bond shall be entitledto receive from the Corporation interest on thebond at three-and-a-half per cent per annum atsuch intervals as may be prescribed, with effectfrom the appointed date and until the bond isduly redeemed.

(6) Bonds issued under this section shall,for the purpose of redemption and of computinginterest, be deemed to have been issued on theappointed date.

[7] Any bond issued under the provisions ofthis section shall be deemed to be a security inwhich a trustee may invest trust monies withinthe meaning of section 20 of the Indian TrustsAct, 1882.

28.Winding up of existing companywhose undertaking has been acquired— (1)The Central Government may, on the applicationof any existing air company or on the applicationof a majority in number representing three-fourths in value of its members holding ordinaryshares, by order in writing, authorise the existingair company the undertaking of which has vestedin either of the Corporations to be wound upvoluntarily in accordance with the provisionsof the Indian Companies Act, 1913 relating tovoluntary winding up:

Provided that—

(a) the winding up of the company shallcommence on the day on which the Central

16


Government authorises the winding upwithout the passing by the company ofany special or other resolution forwinding up; and

(b) the directors of the existing companyshall not be under an obligation to makeany such statutory declaration as isrequired by section 207 of the IndianCompanies Act, 1913 and

(c) the winding up of the company shall becontinued by the directors of the existingcompany in office at the time the CentralGovernment authorises its winding upand they shall be deemed to be jointliquidators for the purpose of the saidwinding up with power to act by a majorityof their number.

(2) For the purposes of winding up the affairsof any existing air company or for any otherpurpose necessary for enabling it to give effectto the provisions of this Act, the CentralGovernment may, notwithstanding anythingcontained in this Act, permit the existing aircompany to occupy, keep in its custody, orutilise, as the case may be, for such period as itmay allow any office, books, accounts and otherdocuments and the services of any officers orother employees, which have been transferredto either of the Corporations under this Act, onsuch terms and conditions as may be agreedbetween the Corporation in which the undertakinghas vested and the existing air company, orfailing agreement, as may be determined by theCentral Government.

29.Authorisation under section 28 maycontain certain directions— Anyauthorisation granted under section 28 mayinclude a direction requiring an existing aircompany the voluntary winding up of which hasbeen authorised under that section to distributeits net assets among the various classes ofmembers of the company in such proportion asthe Central Government may, having regard to

the amount subscribed by each class of suchmembers or having regard to the circumstancesrelating to the issue of the shares to the variousclasses of members, specify in the direction,and any such direction shall have effect not withstanding anything contained in the IndianCompanies Act, 1913 or in the articles ofassociation or resolution of the company or inany agreement, and every such company shallbe bound to comply with any such direction.

CHAPTER V

AIR TRANSPORT COUNCIL

30.Constitution of Air TransportCouncil— a[(1) The Central Government may,from time to time, by notification in the OfficialGazette constitute] an Air Transport Councilconsisting of a Chairman and such other numberof members not exceeding eleven as the Centralgovernment may appoint there to:

Provided that amongst the members to be soappointed there shall at least be one person withexperience in financial metters and one personwho is an employee of either of the Corporationswith experience in labour matters.

b[(2) If at any time the Central Governmentis of opinion that the continued existence of anAir Transport Council is not necessary, it may,by notification in the Official Gazette, declarethat the Air Transport Council shall be dissolvedwith effect from such date as may be specifiedin the notification, and thereupon the AirTransport Council shall be deemed to bedissolved, accordingly.]

[a] Section renumbered as sub-section (1) and in the sub-section so renumbered the words “As soon as may beafter the commencement of this Act, the CentralGovernment may cause to be constituted” substitutedby the Air Corporations (Amendment) Act, 1962 (17 of1962), S. 3 (30-3-1962).

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

31.Functions of the Air TransportCouncil. — (1) It shall be the duty of the AirTransport Council to consider—

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(a) at the request of either of theCorporations any matter of the kindreferred to in section 38; and

(a) any matter of importance which may bereferred to it by the Director-General of CivilAviation or the Director-General of Posts andTelegraphs relating to matters of commoninterest, between either of the Corporationsand the Director-General of Posts andTelegraphs, including rates for the carriage ofpostal articles by air, and to makerecommendations there on to the CentralGovernment.

2. At the request of the CentralGovernment, the Air Transport Council shallinvestigate any matter relating to the fares,freight rates or other charges levied by eitherCorporation in respect of any service or facilityprovided by the Corporation and of the adequacyor efficiency of such service or facility andshall make recommendations there on to theCentral Government.

(3) The Council shall, if so required by theCentral Government, tender advice to thatGovernment in regard to financial and economicanalysis, accounting, costing and statisticaltechniques and financial reporting relating toair transport and, in particular, advise in regardto the matter specified in the proviso to sub-section (2) of section 34.

(4) The Central Government, after takingany recommendation made by the Air TransportCouncil under this section into consideration,may issue such directions in the matter as itthinks fit and such directions shall be bindingon the Corporation concerned.

32.Staff of the Council— The council shallhave a Secretary and such other employees asthe Central Government may appoint, and theexpenditure on the staff and other charges ofthe Council shall be borne by the CentralGovernment.

33.Proceedings of the Council— (1) TheCouncil shall regulate its own procedure.

(2) No proceedings of the Council shall bedeemed to be invalid by reason merely of anyvacancy in, or any defect in the constitution of,the Council.

CHAPTER VI

CONTROL OF CENTRALGOVERNMENT

34.Power of Central Government to givedirections.— (1) The Central Government maygive to either of the Corporations directions asto the exercise and performance by theCorporation of its functions, and theCorporation shall be bound to give effect to anysuch directions.

(2) The Central Government may, if it is ofopinion that it is expedient in the national interestso to do, after consultation with the Corporationconcerned, direct either of the Corporations-

(a) to undertake any air transport service orother activity which the Corporation haspower to undertake;

(b) to discontinue or make any change in anyscheduled air transport service or otheractivity which it is operating or carryingon;

(c) not to undertake any activity which itproposes to do:

Provided that, if, at the direction of theCentral Government, the Corporationestablishes, alters or continues to maintain anair transport service or other activity andsatisfies the Central Government that duringthe relevant financial year the Corporation hassuffered an over-all loss in respect of theoperation of all its air transport services and ofall its other activities and also that the serviceor activity so established, altered or continuedto be maintained in compliance with the

18


directions of the Central Government asaforesaid has been operated at a loss in anyfinancial year, then the Central Governmentshall reimburse the Corporation to the extentof the loss relatable to the operation of thatparticular service or activity.

35.Prior approval of CentralGovernment necessary in certain cases.—Neither Corporation shall, without the previousapproval of the Central Government-

(a) undertake any capital expenditure forthe purchase or acquisition of anyimmovable property or aircraft or anyother thing at a cost exceeding a[ suchamount as the Central Government may,from time to time, by order, fix in thisbehalf.]

(b) enter into a lease of any immovableproperty for a period exceeding b[ tenyears] or

(c) in any manner dispose of any property,right or privilege having an original orbook value exceeding a[ such amount asthe Central Government may, from timeto time, by order, fix in this behalf].

[a] Substituted for the words “rupees forty lakhs” in cl.(a)and the words “rupees ten lakhs” in cl. (c) by the AirCorporations (Amendment) Act (24 of 1982), S.2)(i)and (ii) (21-5-1982).

[b] Substituted for the words “five years” by the AirCorporations (Amendment) Act (49 of 1971), S.8(1-2-1972).

36.Submission of programme of workfor each year.- (1) Each of the corporationsshall prepare and submit to the CentralGovernment, not less than a[two months] beforethe commencement of the financial year of theCorporation a statement showing the programmeof operation and development of air transportservices to be operated by the Corporation andits associates during the forthcoming financialyear and its other activities as well as its financial

estimate in respect thereof, including anyproposed investment of capital and increase inthe strength of its total staff.

(2) If, during any financial year, either of theCorporations engages or proposes to engage inany air transport service or ancillary activity inaddition to those specified in the prgrammepreviously submitted under sub-section (1) anda substantial alteration of the financial estimatesis likely to be involved thereby, the Corporationshall submit to the Central Government forapproval a supplementary programme of suchservice activity and a supplementary estimateof the expenditure and revenue to be incurredand received by the Corporation in respectthereof during the remainder of that period:

Provided that, to meet any unexpected trafficdemand or other special situation either of theCorporation may undertake any additionalservice or other ancillary activity not specifiedin the programme submitted under sub-section(1) or sub-section (2) and subsequently submita report on the matter to the Central Governmentin the prescribed manner.

(a) Substituted for the words ‘three months’ by the AirCorporations (Amendment) Act, 1962(17 of 1962),S.4 (30-3-1962).

37.Submission of Annual Report toParliament.— (1) Each of the Corporationsshall, as soon as may be after the end financialyear, prepare and submit to the CentralGovernment, in such form as may be prescribeda report giving an account of its activities duringthe previous financial year, and the report shallalso give an account of the activities, if any,which are likely to be undertaken by theCorporation during the next financial year.

(2) The Central Government shall causeevery report to be laid before both Houses ofParliament as soon as may be after it issubmitted.

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CHAPTER VII

MISCELLANEOUS

38.Corporations to act in mutualconsultation.— It shall be the duty of each ofthe Corporations to enter into consultationswith the other in matters of common interest tothe two Corporations including, in particular,the operation of scheduled air transport services,the routes on which such services should beoperated by each of the Corporations, thefrequency of such services, the passenger faresand freight rates to be charged, the measures ofeconomy to be adopted, the provision of anyservices in regard to over-haul and maintenanceof aircraft or any other matter falling within thescope of the functions of either of theCorporations, and, generally, in regard toensuring the fullest co-operation and co-ordination in respect of all such matters.

39.Transfer of scheduled air transportservices or assets from one Corporation tothe other— The Central Government may, forthe purpose of improving the air transportservices provided by either of the Corporationsor for effecting better co-ordination in respectof such services, direct that with effect fromsuch date as may be specified in the directionand subject to such conditions as may be similarlyspecified,—

(a) any scheduled air transport serviceoperated by one Corporation shall nolonger be operated by that Corporationbut shall be operated by the otherCorporation, and

(b) any property belonging to oneCorporation shall be transferred to theother Corporation.

40.Corporation may delegate theirpowers— (1) Each of the Corporations mayappoint a Committee or Committees consistingof some or any of its a[directors] with or withoutthe addition of any officer or employee of the

Corporation and delegate any of the functionsand powers of the Corporation to suchCommittee or Committees and may limit theexercise of such delegated authority to anyspecified area.

(2) Either of the Corporations may, inrelation to any particular matter or class ofmatters or to any particular area, by general orspecial order, direct that any of its officers orother employees may also exercise all or any ofits powers under this Act (except the powersgiven to it by this section) to the extent to whichthe Corporation deems it necessary for theefficient running of its day to day administration.

[a] Substituted for the word “member” by the AirCorporations (Amendment) Act (49 of 1971), S. 9 (1-2-1972).

41.Advisory and Labour RelationsCommittees— a[* * *] Each of the Corporationsshall constitute in the prescribed manner aLabour Relations Committee consisting ofrepresentatives of the Corporation and of itsemployees, so however, that the number ofrepresentatives of the employees on theCommittee shall not be less than the number ofrepresentatives of the Corporation, and it shallbe the duty of Labour Relations Committee toadvise the Corporation on matters which relateto the welfare of the employees or which arelikely to promote and secure amity and goodrelations between the two.

[a] Sub-section "(1)" and the brackets and figure "(2)"omitted by the Air Corporations (Amendment) Act (49of 1971), S. 10(1-2-1972)

42. Meetings of the Corporation.— (1)Meetings of the Corporation shall be held atsuch times and places and, subject to sub-sections (2) and (3), the proceedings of theCorporation shall be conducted in such manneras may be provided by the regulations.

(2) The Chairman or in his absence anyperson chosen by the a[directors] present fromamongst themselves shall preside at the meeting.

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(3) At a meeting of the Corporation allquestions shall be decided by a majority votesof the a[directors] present, and for this purpose,each a[director] shall have one vote and in thecase of equality of votes the Chairman or; in hisabsence, the person presiding at the meetingshall have a second or casting vote.

[a] Substituted for the word “members” in Cls. (2) and(3) and “members” in Cl. (3) by the Air Corporations(Amendment) Act 49 of 1971, S. ll (1-2-1972).

43.Penalty for wrongful withholding ofproperty— If a director, managing agent,manager or other officer or employee of anexisting air company who wilfully withholds orfails to deliver to the Corporation as requiredby sub-section (2) of section 21 any books,documents or papers which may be in hispossession or who wrongfully obtainspossession of any property of any such companywhich has vested in either of the Corporationsunder this Act or having any such property in hispossession wrongfully withholds it from theCorporation or wilfully applies it to purposesother than those expressed in, or authorised by,this Act shall on the complaint of theCorporation concerned, be punishable with finewhich may extend to one thousand rupees andmay be ordered by the Court trying the offenceto deliver up or refund within a time to be fixedby the Court any such property improperlyobtained or wrongfully withheld or wilfullymisapplied or in default to suffer imprisonmentwhich may extend to one year.

44.Power to make rules— The CentralGovernment may, by notification in the officialGazette, make rules to give effect to theprovisions of this Act.

(2) In particular, and without prejudice tothe generality of the foregoing power, suchrules may provide for all or any of the followingmatters, namely:—

(a) the terms and conditions of service ofthe a[managing directors] of the two

Corporations; and such other categoriesof officers as may be specified fromtime to time under sub-section (1) ofsection 8;

(b) the form in which the budget of the twoCorporations shall be prepared andsubmitted to the Central Government;and the form and the manner in which theaccounts of the two Corporations shallbe maintained and in which any returnsor statistics shall be furnished orsubmitted;

(c) the reports which should be submittedby the Corporations and the intervalswithin which they should be so submitted;

(d) the maintenance of books of accounts;

(e) the establishment and maintenance of afund by each of the Corporations formeeting any liability arising out of anyact or omission in respect of which theCorporation may incur any liability toany third party;

(f) the provision of b[* *] reserve and otherfunds;

(g) the prohibition of persons who aredirectly or indirectly interested in anysubsisting contract with either of theCorporations from becoming or beingemployees of the Corporation;

(h) the powers which may be exercised byeither of the Corporations to facilitatethe acquisition of any undertaking;

(i) the issue of bonds by either of theCorporations to meet any compensationpayable by it under this Act;

(j) the training of the employees of eitherof the Corporations or other personsand fees which may in its discretion becharged therefor;

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(k) the term of office and other conditionsof service of members of the AirTransport Council constituted undersection 30;

(l) the prohibition of any interference withany air transport services or with anyproperty of the Corporation or of anyinterference with or obstruction of anyofficer or employee of the Corporationin the performance of his duty;

(m) the punishment which shall not exceedimprisonment for three months or fineof rupees one thousand but which mayconsist of both such imprisonment andfine, in respect of any contravention ofthe provisions of any rules made underthis section.

c[(3) Every rule made under this sectionshall be laid, as soon as may be after it is made,before each House of Parliament while it is insession for a total period of thirty days whichmay be comprised in one session or in d[two ormore successive sessions, and if, before theexpiry of the session immediately followingthe session or the successive sessions] bothHouses agree in making any modification in therule or both Houses agree that the rule shouldnot made, the rule shall thereafter have effectonly in such modified form or be of no effect,as the case may be, so however that any suchmodification or annulment shall be withoutprejudice to the validity of anything previouslydone under that rule.]

[a] Substituted for the words “General Managers” by theAir Corporations (Amendment) Act (49 of 1971), S.12(1-2-1972).

(b) Word “depreciation” omitted, Ibid.

[c] Substituted for the original by the Air Corporations(Amendment) Act, 1962 (17 of 1962), S. 5 (30-3-1962).

[d] Substituted for the words “two successive sessions,and if before the expiry of the session in which it is solaid or the session immediately following” by the AirCorporation (Amendment) Act (24 of 1982), S.3 (21-5-1982)

45.Power of Corporations to makeregulations— (1) a[Subject to the provisionsof sub-section (3), each of the Corporationsmay] by notification in the Official Gazette,make regulations not inconsistent with this Actor the rules made thereunder for theadministration of the affairs of the Corporationand for carrying out its functions.

(2) In particular and without prejudice to thegenerality of the foregoing power, any suchregulationsb may provide for all or any of thefollowing matters, namely:—

(a) the time and place of the meetings of theCorporation and the procedure to befollowed for the transaction of businessat such meetings;

(b) the terms and conditions of service ofofficers and other employees of theCorporation other than the c[managingdirector] and officers of any othercategories referred to in section 44;

(c) the issue of passes by the Corporation toits officers and other employees eitherfree of cost or at concessional rates fortravel on its air services and theconditions relating thereto;

(d) the authentication of orders and decisionsof the Corporation and the instrumentsexecuted by, it;

d[(e) the grant of refund in respect of anyunused tickets and the issue of passesfree of cost or at concessional rates;]

(f) the period after the expiry of whichunclaimed goods may be disposed ofand the manner of their disposal;

(g) the conditions governing the carriage ofpersons or goods on its services.

e[(3) No regulation under clause (b) of sub-section (2) shall be made except with the previousapproval of the Central Government.]

22


f[(4) Every regulation made under thissection shall be laid, as soon as may be after itis made, before each House of Parliament,while it is in session, for a total period of thirtydays which may be comprised in one session orin two or more successive sessions, and if,before the expiry of the session immediatelyfollowing the session or the successive sessionsaforesaid, both Houses agree in making anymodification in the regulation or both Housesagree that the regulation should not be made,the regulation shall thereafter have effect onlyin such modified form or be of no effect, as thecase may be; so, however, that any suchmodification or annulment shall be withoutprejudice to the validity of anything previouslydone under that regulation.

(a) Substituted by the Air Corporations (Amendment) Act49 of 1971, S.13(1-2-1972).

(b) For some such Regulations, see S. R. O. 2462 to 2464in Gaz. Ind., Extra., 29-7-1954, Pt. II, Section 3, pages1169 to 1171; for International Carriage of Cargo(other than Baggage and Mail) Regulations, 1973 andInternational Carriages (Passenger and Baggage)Regulations, 1973, see Gaz. of India, 1973, Pt. II,Section 4, pp. 1674-1675; (these Regulations supersedeIndian Airlines (Conditions of Carriage) Regulations,1967).

(c) Substituted for the words “ General Manager” by theAir Corporations (Amendment) Act (49 of 1971) Section13(1-2-1972).

(d) Substituted for the original clause (e) by the AirCorporations (Amendment) Act 1962 (17 of 1962).S.6(30-3-1962).

(e) Inserted by the Air Corporations (Amendment) Act(49 of 1971), S.13(1-2-1972).

(f) Inserted by the Air Corporations (Amendment) Act(24 of 1982), S.4(21-5-1982).

THE SCHEDULE

(See section 25)

PRINCIPLES FOR DETERMININGCOMPENSATION UNDER THIS ACT

Paragraph I. - The compensation whichshall be given by Indian Airlines or Air IndiaInternational, as the case may be, to any existingair company in respect of the vesting, in

accordance with the provisions of this Act, ofthe undertaking of such company in thatCorporation shall be the sum of the amountcomputed in accordance with the provisions ofparagraph II, less the sum of the amountscomputed in accordance with the provisions ofparagraph III.

Paragraph II. — The aggregate writtendown value of all airframes of aircraft in respectof which there are certificates of airworthinessin force or, which can be rendered fit forcertificates of airworthiness if the Corporationconcerned were to incur expenditure withinthe normal rates for rendering the airframesairworthy, plus-

A sum of Rs. 12,000 in respect of eachairframe of a Dakota aircraft and a sum Rs.24,000 in respect of each airframe of a Vikingaircraft in any case where the existing aircompany had obtained a certificate ofairworthiness in respect of it within ninety daysimmediately proceeding the appointed date orif a certificate of airworthiness had not actuallybeen obtained within that period but the existingair company had incurred expenditure withinthat period for the purpose of rendering thatairframe airworthy, the value, of the spare partsused for the purpose subject to a maximum ofRs. 12,000 in case of each airframe of a Dakotaaircraft and Rs.24,000 in the case of eachairframe of a Viking aircraft.

NOTE.- In this Schedule, the expression “airframe” includes also the equipmentof the aircraft, whether fixed or re-movable;

(b) the aggregate written down value of allsuch power plants, aeroengines, air screws,spare aeroengines and spare air screws (all ofwhich are in this Schedule collectively referredto as power plants) as are suitable for use in theairframes mentioned in sub-clause (a) and asare of an approved standard or can be renderedfit to be of an approved standard if theCorporation concerned were to incur

23


expenditure within the normal rates for suchpurposes, plus the following, namely:-

(i) a sum of Rs. 6,000 in respect of eachengine of a Dakota aircraft and a sum of Rs.12,000 in respect of each engine of a Vikingaircraft in any case where the existing aircompany had made it an approved engine withina period of ninety days immediately proceedingthe appointed date or if the engine had not beenmade completely fit to be an approved enginewithin that period but the existing air companyhad incurred expenditure within the said periodfor the purpose of making that engine an approvedengine, then, the value of the spare parts usedfor that purpose subject to a maximum of Rs.6,000 in the case of each engine of a Dakotaaircraft and Rs. 12,000 in the case of eachengine of a Viking aircraft; and

(ii) a sum of Rs. 2,000 in respect of the airscrews and accessories of the power plant of aDakota aircraft and a sum of Rs. 4,000 in respectof the air screws and accessories of the powerplant of a Viking aircraft in any case where theair screws and accessories had been renderedcompletely fit for the approved standard withina period of ninety days immediately precedingthe appointed date or if the same had not beenrendered completely fit for that standard withinthat period but the existing air company hadincurred expenditure within that period for thepurpose of rendering the same fit for theapproved standard, then the value of the spareparts used for that purpose subject to a maximumof Rs. 2,000 in the case of air screws andaccessories of a Dacota aircraft and Rs. 4,000in the case of air screws and accessories of aViking aircraft.

NOTE.- In this Schedule, the expression” ap-proved standard” means such condi-tion of efficiency of the power plantas satisfies the requirements laid downin Section E of Schedule III to theIndian Aircraft Rules, 1937;

(c) the cost or purchase of all serviceablegeneral stores and all such other serviceablestores and spares parts (all of which are in thisSchedule collectively referred to as stores andspare parts) belonging to the existing aircompany as are suitable for use in respect ofthe aircraft or power plants referred to in sub-clauses (a) and (b), reduced in each case by 20per cent, of such case of purchase:

Provided that the reduction shall be 10 percent, in the case of stores and spare partspertaining to Constellation and Skymasteraircraft.

NOTE- In this Schedule-

(a) stores shall be deemed to be serviceableif they are such as to satisfy the requirementslaid down in Section E of Schedule III to theIndian Aircraft Rules, 1937;

(b) without prejudice to the clauseimmediately proceeding stores (other thangeneral stores) and spare parts shall also bedeemed to be serviceable if by incurringexpenditure of an amount not exceeding halfthe costs of purchase of such stores and spareparts, they can be rendered suitable for use inrespect of the aircraft or power plants;

(d) the aggregate actual cost to the existingair company of all lands other than lease-holds;

(e) the total amount of the premiums paid bythe company in respect of all lease-holdsreduced in the case of each such premium by anamount which bears to such premium the sameproportion as the expired term on the appointeddate of the lease in respect of which suchpremium shall have been paid bears to the totalterm of the lease;

(f) the scrap value of all such aircraft, powerplants, propellers and the accessories, spareparts and stores, not falling within any of thepreceding sub-clauses and all properties as havebecome obsolete on the appointed date, thescrap value for the purposes of this Act being

24


one per cent of the book value of the relevantitem of property;

(g) the price paid by the existing air companyfor any trustee security held by it;

(h) the value of any shares held by anyexisting air company in any other existing aircompany the value being calculated on thebasis of the valuation of the air transportundertaking of that other company in accordancewith the provisions of this Schedule;

(i) the market value on the appointed date orthe purchase price, whichever is less, of anyother investments held by any existing aircompany in any concern other than anotherexisting air company which subject to theprovisions of Section 22, have vested in theCorporation;

(j) the amount of cash held by any existingair company on the appointed date whether indeposit with a bank or otherwise;

(k) the amount of debts other than bad debtsdue to any existing air company, to the extent towhich they are reasonable considered to berecoverable, less the amount of the debts, ifany, excluded from the transfer to theCorporation concerned under the provisions ofSection 22;

(l) the aggregate cost of all licence feespaid by the company under clause (c) of sub-rule (1) of Rule 154 of the Indian Aircraft,1937, in respect of the licences granted to it forthe operation of any scheduled air transportservices and held by it on the appointed date andwhich but for the provisions of section 19would continue to remain valid plus a sum ofRs. 100 for each such licence; provided that thefees paid for each such licence shall be reducedby an amount which bears to such fees the sameproportion as the period of the licence whichshall have expired on the appointed date bearsto the total period of the licence;

(m) the aggregate written down value of alltangible assets other than those falling withinthe preceding clauses;

(n) an aggregate amount not exceeding tenthousand rupees as may be agreed upon betweenthe Corporation and the existing air companyconcerned or, failing agreement, which may beassessed by the Tribunal, in respect of all suchassets, intangible or otherwise, as do not fallwithin any of the preceding sub-clauses and inrespect of the loss of any future profits whichthe existing air company might have earned butfor the passing of this Act:

Provided that in assessing any amount underthis clause regard shall be had to the followingcircumstances, namely:-

(i) the profits, if any, earned by it annuallyduring the six years immediatelyproceeding the appointed date on whichincome-tax has been paid,

(ii) the subsidies, if any, given to thatcompany by the Central Governmentduring such period, and

(iii) the probability or otherwise of thecompany earning future profits if it wereallowed to continue its scheduled airtransport services for the remainingperiod of the licence held by it afterhaving due regard to the fact that thelicence held by it did not confer anymonopoly upon it in respect of the routesconcerned and the fact that no subsidywould have been payable by the CentralGovernment after the 31st day ofDecember, 1952.

Explanation A.— For the purpose of thisSchedule, the written down value in respect ofeach class of assets means the actual cost to theexisting air company of such assets respectively,less the total depreciation calculated at therates and in manner following, namely:-

25


(i) in respect of each airframe, depreciationshall be calculated at 15 percent per annum forconstellation and Skymaster aircraft and 18percent per annum for other aircraft from thedate on which the aircraft concerned was firstused in revenue operations by the company tillthe 31st day of December, 1952, the ratesbeing applied as follows :-

for the first year, on the actual cost ofacquisition;

for the second year, on an amountobtained by reducing from the actualcost of acquisition the amount ofdepreciation calculated as aforesaid forthe first year;

for the third year, on an amount obtainedby reducing from the actual cost ofacquisition the aggregate amount ofdepreciation calculated as aforesaid forthe preceding two years ;

and so on;

(ii) in respect of power plants, thedepreciation shall be calculated at 20per cent. per annum for Constellationand Skymaster aircraft and at 24 percent. per annum for other aircraft fromthe date on which the power plantconcerned was first used in revenueoperations by the company till the 31stday of December, 1952, the rates beingapplied as follows:-

for the first year, on the actual cost ofacquisition;

for the second year, on an amountobtained by reducing from the actualcost of acquisition the amount ofdepreciation calculated as aforesaid forthe first year;

for the third year on an amount obtainedby reducing from the actual cost of

acquisition the aggregate amount ofdepreciation calculated as aforesaid forthe preceding two years;

and so on;

(iii) in respect of all tangible assets fallingwithin clause (m) of paragraph II,depreciation shall be calculated at thenormal annual rates for which provisionis made in the Indian Income-tax Act,1922, and in the manner provided therein,but excluding initial or other specialdepreciation, from the date such assetswere acquired or created by the existingair company until the 31st day ofDecember, 1952:

Provided that in respect of any such assetfor which no provision has been made in theIndian Income-tax Act, 1922, the rate ofdepreciation shall be 10 per cent, per annum:

Provided further that in respect of any suchasset situate on the leasehold land other thanland rented from Government, the depreciationshall be either -

(a) as provided in the proceeding provisionsof this clause, or

(b) equivalent to an amount which bears thesame ratio to the total cost of acquisitionor creation of the asset (situate onleasehold land) as the expired portion ofthe lease on the appointed date bears tothe total period of the lease currentlyrunning,

whichever is greater.

Explanation B.— For the purpose of thisSchedule, the actual cost shall include, in thecase of airframes, in addition to the cost ofpurchase or acquisition-

(i) the actual expenditure, if any, incurredby the existing air company for

26


reconversion or reconstruction of theairframe in order to render it fit for civilair transport before it was first used inrevenue operations by the company, plus,

(ii) the actual expenditure incurred in makingthe airframes airworthy before its firstuse in revenue operations.

Explanation C.— In the case of powerplants, the actual cost shall include, in additionto the cost of purchase or acquisition, the costincurred by the company for conversion orreconditioning, repairing or overhauling the

power plant, in order to render its fit for thepurposes of a certificate under paragraph 4 ofsection E of Schedule III to the Indian AircraftRules, 1937, before the date of its first use inrevenue operations.

Paragraph III.— Subject to the provisionsof sections 22 and 23, all such liabilities ashave been declared by the existing air companyunder the provisions of section 22:

Provided that if any liability so declared hasbeen understated, the Corporation may recoverthe additional amount from the company.

27


[Intentionally left blank]

28

CHAPTER II

THE AIR CORPORATIONS (TRANSFER OFUNDERTAKINGS AND REPEAL) ORDINANCE, 1994

(4 OF 1994)

29

CHAPTER II

THE AIR CORPORATIONS (TRANSFER OFUNDERTAKINGS AND REPEAL) ORDINANCE, 1994.

TABLE OF CONTENTS

SECTION PAGE


2. Definitions . . . . . . . . . . 31

3. Undertakings of corporations to vest in companies. . . . . 31

4. General effect of vesting undertakings in the companies. . . . 31

5. Licences etc. deemed to have been granted to companies. . . . 32

6. Tax exemption or benefit to continue to have effect. . . . . 32

7. Guarantee to be operative . . . . . . . . 32

8. Provisions in respect of officers and other employees of corporations . . 32

9. Power of Central Government to give directions . . . . 33

10. Power to remove difficulties. . . . . . . . 33

11. Repeal of Act 27 of 1953 and corporations to cease to exist . . . 34

30

THE AIR CORPORATIONS (TRANSFER OF UNDERTAKINGS AND REPEAL) ORDINANCE, 1994CHAP. II

CHAPTER II

THE AIR CORPORATIONS (TRANSFER OFUNDERTAKINGS 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 andvesting of the undertakings of Indian Airlinesand Air India respectively to and in the companiesformed and registered as Indian Airlines Limitedand Air India Limited and for matters connectedtherewith or incidental thereto and also to repealthe Air Corporations Act, 1953.

Whereas the Air Corporations (Transfer ofUndertakings and Repeal) Bill, 1992 has beenintroduced in Parliament but has not yet beenpassed;

And whereas Parliament is not in sessionand the President is satisfied that circumstancesexist which render it necessary for him to takeimmediate action to give effect to the provisionsof the Bill;

Now, therefore, in exercise of the powersconferred by clause (1) of article 123 of theConstitution the President is pleased topromulgate the following Ordinance :—

1. Short title and commencement — (1)This Ordinance may be called the AirCorporations (Transfer of Undertakings andRepeal) Ordinance, 1994.

(2) It shall come into force at once.

2. Definitions — In this Ordinance, unlessthe context otherwise requires,—

(a) "appointed day" means such date as theCentral Government may, by notificationin the Official Gazette, appoint under

section 3;

(b) "company" means "Indian AirlinesLimited" or 'Air India Limited" formedand registered under the Companies Act,1956;

(c) "corporations" means "Indian Airlines"and "Air India" established under section3 of the Air Corporations Act, 1953(hereinafter referred to as the principalAct) ; and "corporation" means either ofthe corporations;

3. Undertakings of corporations to vestin companies— On such date as the CentralGovernment may, by notification in the OfficialGazette, appoint, there shall be transferred to,and vest in, —

(a) Indian Airlines Limited, the undertakingof Indian Airlines; and

(b) Air India Limited, the undertaking of AirIndia.

4. General effect of vesting undertakingsin the companies — (1) The undertaking of acorporation which is transferred to, and whichvests in, a company under section 3 shall bedeemed to include all assets, rights, powers,authorities and privileges and all properties,movable and immovable, real or personal,corporeal or incorporeal, in possessionreservation, present or contingent, of whatevernature and wheresoever situate, including lands,

31


works, workshops, aircrafts, cash balances,capital, reserves, reserve funds, investments,tenancies, leases and book debts and all otherrights and interests arising out of such propertyas were immediately before the appointed dayin the ownership, possession or power of thatcorporation in relation to its undertaking,whether within or outside India, all books ofaccounts and documents relating thereto andshall also be deemed to include all borrowings,liabilities and obligations of whatever kind thensubsisting of that corporation in relation to itsundertaking.

(2) All contracts and working arrangementssubsisting immediately before the appointedday and affecting a corporation shall in so far asthey relate to the undertaking of that corporationcease to have effect or to be enforceable againstthat corporation and shall be of as full force andeffect against or in favour of the company inwhich the undertaking has vested by virtue ofthis Ordinance and enforceable as fully andeffectually as if, instead of the corporation, thecompany had been named therein or had been aparty thereto.

(3) Any proceeding or cause of actionpending or existing immediately before theappointed day by or against a corporation inrelation to its undertaking may, as from thatday, be continued and enforced by or against thecompany in which it has vested by virtue of thisOrdinance, as it might have been enforced by oragainst that corporation if this Ordinance hadnot been passed and shall cease to be enforceableby or against that corporation.

5. Licences etc. deemed to have beengranted to companies — With effect from theappointed day, all licences, permits, quotas andexemptions; granted to a corporation inconnection with the affairs and business of thatcorporation under any law for the time being in

force shall be deemed to have been granted tothe company in which the undertaking of thatcorporation has vested.

6. Tax exemption or benefit to continueto have effect — (1) Where any exemptionfrom, or any assessment with respect to, or anytax has been granted or made or any benefit byway of set off or carry forward, as the case maybe, of any unabsorbed depreciation or investmentallowance or other allowance or loss has beenextended or is available to a corporation underthe Income-tax Act, 1961, such exemption,assessment or benefit shall continue to haveeffect in relation to the company in which theundertaking of that corporation has vested.

(2) Where any payment made by acorporation is exempt from deduction of thetax at source under any provision of the Income-tax Act, 1961, the exemption from tax willcontinue to be available as if the provisions ofthe Act made applicable to the corporationwere operative in relation to the company inwhich the undertaking of that corporation hasbeen vested.

(3) The transfer and vesting of theundertaking or any part thereof in terms ofsection 3 shall not be construed as a transferwithin the meaning of the Income-tax Act, 1961for the purposes of capital gains.

7. Guarantee to be operative — Anyguarantee given for or in favour of a corporationwith respect to any loan or lease finance shallcontinue to be operative in relation to thecompany in which the undertaking of thatcorporation has vested by virtue of thisOrdinance.

8. Provisions in respect of officers andother employees of corporations — (1) Everyofficer or other employee of a corporation(except a Director of the Board, Chairman,Managing Director or any other person entitled

32


to manage the whole or a substantial part of thebusiness and affairs of the corporation) servingin its employment immediately before theappointed day shall, in so far as such officer orother employe is employed in connection withthe undertaking which has vested in a companyby virtue of this Ordinance become, as from theappointed day an officer or other employee, asthe case may be, of the company in which theundertaking has vested and shall hold his officeor service therein by the same tenure, at thesame remuneration, upon the same terms andconditions, with the same obligations and withthe same rights and privileges as to leave, passage,insurance, superannuation scheme, providentfund, other funds, retirement, pension, gratuityand other benefits as he would have held underthat corporation if its undertaking had not vestedin the company and shall continue to do so as anofficer or other employee, as the case may be,of the company or until the expiry of a period ofsix months from the appointed day if suchofficer or other employee opts not to be theofficer or other employee of the company withinsuch period.

(2) Where an officer or other employee ofa corporation opts under sub-section (1) not tobe in the employment or service of the companyin which the undertaking of that corporation hasvested, such officer or other employee shall bedeemed to have resigned.

(3) Notwithstanding anything contained inthe Industrial Disputes Act, 1947 or in anyother law for the time being in force, the transferof the services of any officer or other employeeof a corporation to a company shall not entitlesuch officer or other employee to anycompensation under the said Act or under anyother law for the time being in force and nosuch claim shall be entertained by any court,tribunal or other authority.

(4) The officers and other employees whohave retired before the appointed day from the

service of a corporation and are entitled to anybenefits, rights or privileges shall be entitled toreceive the same benefits, rights or privilegesfrom the company in which the undertaking ofthat corporation has vested.

(5) The trusts of the Provident Fund or PilotsGroup Insurance and Superannuation Schemeof the corporation and any other bodies createdfor the welfare of officers or employees wouldcontinue to discharge their functions in thecompany as was being done hitherto in thecorporation. Tax exemption granted to providentFund or Pilots Group Insurance andSuperannuation Scheme would continue to beapplied to the company.

(6) Notwithstanding anything contained inthis Ordinance or in the Companies Act, 1956or in any other law for the time being in force orin the regulations of a corporation, no Directorof the Board, Chairman, Managing Directoror any other person entitled to manage thewhole or a substantial part of the business andaffairs of that corporation shall be entitled toany compensation against that corporation oragainst the company, as the case may be, for theloss of office or for the premature terminationof any contract of management entered into byhim with that corporation.

9. Power of Central Government to givedirections— The Central Government may giveto a company directions as to the exercise andperformance by that company of its functionsand that company shall be bound to give effectto any such directions.

10. Power to remove difficulties — (1) Ifany difficulty arises in giving effect to theprovisions of this Ordinance, the CentralGovernment may by order published in theOfficial Gazette, not inconsistent with theprovisions of this Ordinance, remove thedifficulty :

Provided that no such order shall be made

33


after the expiry of a period of two years fromthe coming into force of this Ordinance.

(2) Every order made under sub-section (1)shall be laid before each House of Parliament.

11. Repeal of Act 27 of 1953 and

corporations to cease to exist — (1) On theappointed day, the Air Corporations Act 1953shall stand repealed.

(2) The corporations shall, with the repealof the Air Corporations Act, 1953, cease toexist.

34


CHAPTER III

THE AIR CORPORATIONS (TRANSFER OFUNDERTAKINGS AND REPEAL) ACT, 1994.

(13 OF 1994)

35

CHAPTER III


TABLE OF CONTENTS

SECTION PAGE


2. Definitions . . . . . . . . . . 37

3. Undertakings of corporations to vest in companies. . . . . 37

4. General effect of vesting undertakings in the companies. . . . 37

5. Licences etc. to be deemed to have been granted to companies . . . 38

6. Tax exemption or benefit to continue to have effect. . . . . 38

7. Guarantee to be operative . . . . . . . . 38

8. Provisions in respect of officers and other employees of corporations . . 38

9. Power of Central Government to give directions. . . . . 39


11. Repeal of Act 27 of 1953 and cesser of corporations. . . . 40

12. Repeal and Saving. . . . . . . . . . 40

36

THE AIR CORPORATIONS (TRANSFER OF UNDERTAKINGS AND REPEAL) ACT, 1994 CHAP. III

An Act to provide for the transfer and vestingof the undertakings of Indian Airlines and AirIndia respectively to and in the companiesformed and registered as Indian Airlines Limitedand Air India Limited and for matters connectedtherewith or incidental thereto and also to repealthe Air Corporations Act, 1953.

Be it enacted by Parliament in the Forty-fifth Year of the Republic of India as follows:—

1. Short title and commencement — (1)This Act may be called the Air Corporations(Transfer of Undertakings and Repeal) Act,1994.

(2) It shall be deemed to have come intoforce on the 29th day of January, 1994.

2. Definitions — In this Act, unless thecontext otherwise requires,—

(a) “appointed day” means such date as theCentral Government may, by notificationin the Official Gazette, appoint undersection 3;

(b) “company” means “Indian AirlinesLimited” or “Air India Limited” formedand registered under the Companies Act,1956;

(c) “corporations” means “Indian Airlines”and “Air India” established under section3 of the Air Corporations Act, 1953 and

“corporation” means either of thecorporations.

3. Undertakings of corporations to vestin companies— On such date as the CentralGovernment may, by notification in the OfficialGazette, appoint, there shall be transferred to,and vest in, —

(a) Indian Airlines Limited, the undertakingof Indian Airlines; and

(b) Air India Limited, the undertaking of AirIndia.

4. General effect of vesting ofundertakings in the companies — (1) Theundertaking of a corporation which is transferredto, and which vests in a company under section3 shall be deemed to include all assets, rights,powers, authorities and privileges and allproperties, moveable and immovable, real orpersonal, corporeal or incorporeal, inpossession or reservation, present orcontingent, of whatever nature and wheresoeversituate, including lands, works, workshops,aircraft, cash balances, capital reserves, reservefunds, investments, tenancies, leases and bookdebts and all other rights and interests arisingout of such property as were immediately beforethe appointed day in the ownership, possessionor power of that corporation in relation to itsundertaking, whether within or outside India,all books of account and documents relating

CHAPTER III


(13 OF 1994)

(21 MARCH 1994)

37


thereto and shall also be deemed to include allborrowings liabilities and obligations ofwhatever kind then subsisting of that corporationin relation to its undertaking.

(2) All contracts and working arrangementssubsisting immediately before the appointedday and affecting a corporation shall, in so faras they relate to the undertaking, of thatcorporation, cease to have effect or to beenforceable against that corporation and shallbe of as full force and effect against or in favourof the company in which the undertaking hasvested by virtue of this act and enforceable asfully and effectually as if, instead of thecorporation, the company had been namedtherein or had been a party thereto.

(3) Any proceeding or cause of actionpending or existing immediately before theappointed day by or against a corporation inrelation to its undertaking may, as from thatday, be continued and enforced by or against thecompany in which it has vested by virtue of thisAct, as it might have been enforced by or againstthat corporation if this Act had not been passed,and shall cease to be enforceable by or againstthat corporation.

5. Licences, etc., to be deemed to havebeen granted to companies — With effectfrom the appointed day, all licences, permits,quotas and exemptions granted to a corporationin connection with the affairs and business ofthat corporation under any law for the timebeing in force, shall be deemed to have beengranted to the company in which the undertakingof that corporation has vested.

6. Tax exemption or benefit to continueto have effect — (1) Where any exemptionfrom, or any assessment with respect to, any taxhas been granted or made or any benefit by wayof set off or carry forward, as the case may be,of any unabsorbed depreciation or investmentallowance or other allowance or loss has been

extended or is available to a corporation underthe Income-tax Act, 1961, such exemption,assessment or benefit shall continue to haveeffect in relation to the company in which theundertaking of that corporation has vested.

(2) Where any payment made by acorporation is exempt from deduction of thetax at source under any provision of the Income-tax Act 1961, the exemption from tax willcontinue to be available as if the provisions ofthe Act made applicable to the corporationwere operative in relation to the company inwhich the undertaking of that corporation hasbeen vested.

(3) The transfer and vesting of theundertaking or any part thereof in terms ofsection 3 shall not be construed as a transferwithin the meaning of the Income-tax Act, 1961for the purposes of capital gains.

7. Guarantee to be operative — Anyguarantee given for or in favour of a corporationwith respect to any loan or lease finance shallcontinue to be operative in relation to thecompany in which the undertaking of thatcorporation has vested by virtue of this Act.

8. Provisions in respect of officers andother employees of corporations — (1) Everyofficer or other employee of a corporation(except a Director of the Board, Chairman,Managing Director or any other person entitledto manage the whole or a substantial part of thebusiness and affairs of the corporation) servingin its employment immediately before theappointed day shall, in so far as such officer orother employee is employed in connection withthe undertaking which has vested in a companyby virtue of this Act, become, as from theappointed day an officer or other employee, asthe case may be, of the company in which theundertaking has vested and shall hold his officeor service therein by the same tenure, at thesame remuneration upon the same terms and

38


conditions, with the same obligations and withthe same rights and privileges as to leave, passage,insurance, superannuation scheme, providentfund, other funds, retirement, pension, gratuityand other benefits as he would have held underthat corporation if its undertaking had not vestedin the company and shall continue to do so as anofficer or other employee, as the case may be,of the company or until the expiry of a period ofsix months from the appointed day if suchofficer or other employee opts not to be theofficer or other employee of the company withinsuch period.

(2) Where an officer or other employee ofa corporation opts under sub-section (1) not tobe in the employment or service of the companyin which the undertaking of that corporation hasvested, such officer or other employee shall bedeemed to have resigned.

(3) Notwithstanding anything contained inthe Industrial Disputes Act, 1947 or in anyother law for the time being in force, the transferof the services of any officer of other employeeof a corporation to a company shall not entitlesuch officer or other employee to anycompensation under the said Act or under anyother law for the time being in force and nosuch claim shall be entertained by any court,tribunal or other authority.

(4) The officers and other employees whohave retired before the appointed day from theservice of a corporation and are entitled to anybenefits, rights or privileges shall be entitled toreceive the same benefits, rights or privilegesfrom the company in which the undertaking ofthat corporation has vested.

(5) The trusts of the Provident Fund or PilotsGroup Insurance and Superannuation Schemeof the corporation and any other bodies created

for the welfare of officers or employees wouldcontinue to discharge their functions in thecompany as was being done hitherto in thecorporation. Tax exemption granted to providentFund or Pilots Group Insurance andSuperannuation Scheme would continue to beapplied to the company.

(6) Notwithstanding anything contained inthis Ordinance or in the Companies Act, 1956or in any other law for the time being in force orin the regulations of a corporation, no Directorof the Board, Chairman, Managing Director orany other person entitled to manage the wholeor a substantial part of the business and affairsof that corporation shall be entitled to anycompensation against that corporation or againstthe company, as the case may be, for the loss ofoffice or for the premature termination of anycontract of management entered into by himwith that corporation.

9. Power of Central Government to givedirections— The Central Government may giveto a company directions as to the exercise andperformance by that company of its functions,and that company shall be bound to give effectto any such directions.

10. Power to remove difficulties — (1) Ifany difficulty arises in giving effect to theprovisions of this Act, the Central Governmentmay by order published in the Official Gazette,not inconsistent with the provisions of this Act,remove the difficulty

Provided that no such order shall be madeafter the expiry of a period of two years fromthe coming into force of this Act.

(2) Every order made under sub-section (1)shall be laid before each House of Parliament.

39


11. Repeal of Act 27 of 1953 and cesser ofcorporations— (1) On the appointed day, theAir Corporations Act, 1953 shall stand repealed.

(2) The corporation shall, with the repeal ofthe Air Corporations Act, 1953, cease to exist.

12. Repeal and Saving — (1) The AirCorporations (transfer of Undertakings and

Repeal) Ordinance, 1994 is hereby repealed.

(2) Notwithstanding such repeal of the AirCorporations (Transfer of Undertakings andRepeal) Ordinance, 1994, anything done or anyaction taken under the said ordinance shall bedeemed to have been done or taken under thecorresponding provisions of this Act.

40


CHAPTER IV

THE INTERNATIONAL AIRPORTS AUTHORITY ACT, 1971

(43 OF 1971)

41

CHAPTER IV

THE INTERNATIONAL AIRPORTS AUTHORITY ACT, 1971

TABLE OF CONTENTS

SECTIONS PAGES

CHAPTER I

Preliminary

1. Short title, commencement and application. . . . . .. . 44

2. Definitions . . . . . . . . . . 44

CHAPTER II

The International Airports Authority of India

3. Constitution and incorporation of the Authority . . . . . . 45

4. Disqualification for office of member . . . . . . . 45

5. Term of office and conditions of service of members . . . . . 45

6. Vacation of office of member . . . . . . . . 46

7. Eligibility of member for re-appointment . . . . . . . 46

8. Meetings . . . . . . . . . . 46

9. Vacancy in the Authority not to invalidate proceedings . . . . . 46

10. Appointment of officers and other employees of the Authority . . . . 46

11. Authority to act on business principles . . . . . . . 47

CHAPTER III

Property and Contracts

12. Transfer of assets and liabilities of Central Government to the Authority . . . 47

13. Compulsory acquisition of land for the Authority . . . . . . 49

14. Contracts by the Authority . . . . . . . . . 49

15. Mode of executing contracts on behalf of the Authority. . . . . 49

CHAPTER IV

Functions of the Authority

16. Functions of the Authority . . . . . . . . . 49

42

THE INTERNATIONAL AIRPORTS AUTHORITY ACT, 1971 CHAP. IV

SECTIONS PAGESCHAPTER V

Finance, Accounts and Audit

17. Power of the Authority to charge fees, rent, etc.. . . . . . 50

18. Additional capital and frants to the Authority by the Central Government . . . 51

19. Fund of the Authority . . . . . . . . . 51

20. Allocation of surplus funds . . . . . . . . . 51

21. Submission of programme of activities and financial estimates. . . . 52

22. Investment of funds . . . . . . . . . 52

23. Borrowing powers of the Authority . . . . . . . 52

24. Accounts and audit . . . . . . . . . . 52

CHAPTER VI

Miscellaneous

25. Submission of annual reports of Parliament. . . . . . . 53

26. Delegation . . . . . . . . . . 53

27. Authentication of orders and other instruments of the Authority. . . . 53

28. Officers and employees of the Authoruity to be public servants. . . . 53

29. Protection of action taken under the Act. . . . . . . 53

30. Custody and disposal of lost property . . . . . . . 53

31. Provisions relating to income-tax . . . . . . . . 54

32. Power of the Authority to undertake certain works. . . . . . 54

33. Power of Central Government to temporarily divest the Authorityof the management of any airport. . . . . . . . 54

34. Power of Central Government to supersede the Authority. . . . . 55

35. Power of Central Government to issue directions. . . . . . 56

36. Power of Central Government to make rules . . . . . . 56

37. Power of the Authority to make regulations. . . . . . . 57

38. Supplemental provisions respecting regulations. . . . . . 58

39. Penalty for breach of certain regulations. . . . . . . 58

40. Power to remove difficulties . . . . . . . . 58

41. Amendment of Act 22 of 1934 . . . . . . . . 58

43


An Act to provide for the constitution of anauthority for the management of certainaerodromes whereat international air transportservices are operated or are intended to beoperated and for matters connected therewith.

Be it enacted by Parliament in the Twenty-second Year of the Republic of India as follows:—

CHAPTER I

PRELIMINARY

1. Short title, commencement andapplication —(1) This Act may be called theInternational Airports Authority Act, 1971.

(2) It shall come into force on such date asthe Central Government may, by notification inthe Official Gazette, appoint.

(3) It applies, in the first instance, to theaerodromes of Bombay (Santa Cruz), Calcutta(Dum Dum), Delhi (Palam) and Madras(Meenambakkam) and the Central Governmentmay, by notification in the official Gazette,apply the provision of this Act to any otheraerodrome whereat international air transportservices are operated or are intended to beoperated and with effect from such date as maybe specified in the notification.

2. Definitions — In this Act, unless thecontext otherwise requires,—

(a) “airport” means an aerodrome as defined

in clause (2) of section 2 of the AircraftAct, 1934 and to which this Act appliesor is made applicable;

(b) “airstrip” means an area used or intendedto be used for the landing and take-off ofaircrafts with short take-off and landingcharacteristics and includes all buildingsand structures thereon or appertainingthereto;

(c) “Authority” means the InternationalAirports Authority of India constitutedunder section 3;

(d) “Chairman” means the Chairman of theAuthority;

(e) “heliport “ means an area, either at groundlevel or elevated on a structure, used orintended to be used for the landing andtakeoff of helicopters and includes anarea for parking helicopters and allbuildings and structures thereon orappertaining thereto;

(f) “member” means a member of theAuthority and includes the Chairman butfor the purposes of sections 4, 5, 6 and7 does not include the ex-officiomember referred to in clause (b) of sub-section (3) of section 3;

(g) “prescribed” means prescribed by rulesmade under this Act; and

CHAPTER IV

THE INTERNATIONAL AIRPORTS AUTHORITY ACT 1971

(43 OF 1971)

(December 8, 1971)

44


(h) “regulations” means regulations madeunder this Act.

CHAPTER II

THE INTERNATIONAL AIRPORTSAUTHORITY OF INDIA

3. Constitution and incorporation of theAuthority — (1) With effect from thecommencement of this Act, the CentralGovernment shall constitute an authority to becalled the International Airports Authority ofIndia.

(2) The Authority shall be a body corporateby the name aforesaid having perpetualsuccession and a common seal, with power,subject to the provisions of this Act, to acquire,hold and dispose of property both movable andimmovable , and to contract and shall by the saidname sue and be sued.

(3) The Authority shall consist of —

(a) a Chairman to be appointed by the CentralGovernment.

(b) the Director-General of Civil Aviationex-officio; and

(c) not less than six and not more thanthirteen members to be appointed by theCentral Government.

(4) The Chairman shall be a whole-timemember and the other members referred to inclause (c) of sub-section (3) may be appointedas whole-time or part-time members as theCentral Government may think fit.

(5) The names of persons appointed asmembers shall be notified by the CentralGovernment in the Official Gazette.

(6) During the temporary absence of theChairman, the Central Government may appointanother member to act as the Chairman.

4. Disqualification for office ofmember— A person shall be disqualified forbeing appointed as a member if he —

(a) has been convicted and sentenced toimprisonment for an offence, which, inthe opinion of the Central Government,involves moral turpitude; or

(b) is an undischarged insolvent; or

(c) is of unsound mind and stands so declaredby a competent Court; or

(d) has been removed or dismissed from theservice of the Government or aCorporation owned or controlled by theGovernment; or

(e) has, in the opinion of the CentralGovernment such financial or otherinterest in the Authority as is likely toaffect prejudicially the discharge by himof his functions as a member.

5. Terms of office and conditions ofservice of members — (1) Subject to theprovisions of section 6, every member shallhold office for a period of three years from thedate on which he assumes office :

Provided that the Central Government may—

(a) terminate the appointment of anywhole—time member, who is not aservant of the Government, after givinghim notice for a period of not less thanthree months or in lieu thereof onpayment of an amount equal to his salaryand allowances, if any, for a period ofthree months :

(b) terminate the appointment of any part-time member who is not a servant of theGovernment after giving him notice forsuch period as may be prescribed ; and

(c) terminate at any time the appointment ofany member who is a servant of theGovernment.

45


(2) The other conditions of service of themembers shall be such as may be prescribed.

(3) Any member may resign his office bygiving notice in writing for such period as maybe prescribed to the Central Government and,on such resignation being notified in the OfficialGazette by that Government, such member shallbe deemed to have vacated his office.

(4) A casual vacancy caused by theresignation of a member under sub-section (3)or otherwise may be filled by fresh appointmentand the person so appointed shall hold officefor the remaining period for which the memberin whose place he is appointed would have heldoffice.

6. Vacation of office of member — TheCentral Government shall remove a member ifhe —

(a) becomes subject to any of the dis-qualifications mentioned in section 4:

Provided that no member shall beremoved on the ground that he hasbecome subject to the disqualificationmentioned in clause (e) of thatsection, unless he has been given areasonable opportunity of being heardin the matter; or

(b) refuses to act or becomes incapable ofacting; or

(c) is, without obtaining leave of absencefrom the Authority, absent fromthree consecutive meetings of theAuthority; or

(d) in the opinion of the Central Governmenthas so abused his position as to renderhis continuance in office detrimentralto the public interest :

Provided that no member shall be removedunder this clause unless he has been given a

reasonable opportunity of being heard in thematter.

7. Eligibility of member forreappointment — Any person ceasing to be amember shall, unless disqualified under section4, be eligible for re-appointment as such.

8. Meetings — (1) The Authority shallmeet at such times and places and shall observesuch rules of procedure in regard to thetransaction of business at its meetings (includingthe quorum at meetings) as may be provided byregulations.

(2) The Chairman, or, if for any reason he isunable to attend any meeting , any other memberchosen by the members present at the meetings,shall preside at the meeting.

(3) All questions which come up before anymeeting of the Authority shall be decided by amajority of the votes of the members presentand voting and in the event of an equality ofvotes, the Chairman, or in his absence, theperson presiding, shall have and exercise asecond or casting vote.

9. Vacancy in the Authority not toinvalidate proceedings — No act orproceeding of the Authority shall be deemed tobe invalid by reason merely of any vacancy in,or any defect in the constitution of, theAuthority.

10. Appointment of officers and otheremployees of the Authority — (1) For thepurpose of enabling it efficiently to dischargeit functions under this Act, the Authority shall,subject to the provisions of section 12 and tosuch rules as may be prescribed in this behalf,appoint (whether on deputation or otherwise)such number of officers and other employeesas it may consider necessary :

Provided that the appointment of suchcategory of officer as may be specified after

46


consultation with the Chairman in such rules,shall be subject to the approval of the CentralGovernment.

(2) Subject to the provisions of section 12,every officer or other employee appointed bythe Authority shall be subject to such conditionsof service and shall be entitled to suchremunerations as may be determined byregulations.

11. Authority to act on businessprinciples — In the discharge of its functionsunder this Act, the Authority shall act, so far asmay be, on business principles.

CHAPTER III

PROPERTY AND CONTRACT

12. Transfer of assets and liabilities ofCentral Government to the Authority — (1)Save as otherwise provided in sub-section (2),as from such date as the Central Governmentmay appoint by notification in the OfficialGazette in relation to any airport, —

(a) all properties and other assets vested inthe Central Government for the purposeof the airport and administered by theDirector- General of Civil Aviationimmediately before such day shall vestin the Authority;

(b) all debts, obligations and liabilitiesincurred, all contracts entered into andall matters and things engaged to be doneby, with, or for the Central Governmentimmediately before such day for or inconnection with the purposes of theairport shall be deemed to have beenincurred, entered into and engaged to bedone by, with, or for the Authority;

(c) all non-recurring expenditure incurredby the Central Government for or inconnection with the purposes of theairport up to such day and declared to becapital expenditure by the Central

Government shall, subject to such termsand conditions as may be determined bythe Central Government, be treated asthe capital provided by the CentralGovernment to the Authority;

(d) all sums of money due to the CentralGovernment in relation to the airportimmediately before such day shall bedeemed to be due to the Authority;

(e) all suits and other legal proceedingsinstituted or which could have beeninstituted by or against the CentralGovernment immediately before suchday for any matter in relation to theairport may be continued or institutedby or against the Authority;

(f) every employee holding any office underthe Central Government immediatelybefore such day solely or mainly for orin connection with such affairs of theairport as are relevant to the functions ofthe Authority under this Act shall betreated as on deputation with theAuthority but shall hold his office in theAuthority by the same tenure and uponthe same terms and conditions of serviceas respects, remuneration, leave,provident fund, retirement or otherterminal benefits as he would have heldsuch office, if the Authority had notbeen constituted and shall continue todo so until the Central Government,either on its own motion or at the requestof the Authority, recalls such employeeto its service or until the Authority, withthe concurrence of the CentralGovernment, duly absorbs suchemployee in its regular service, whicheveris earlier :

Provided that during the period ofdeputation of any such employee withthe Authority, the Authority shall pay tothe Central Government, in respect of

47


every such employee, such contributiontowards his leave salary, pension andgratuity as the Central Government may,by order, determine:

Provided further that any such employee,who, has in respect of the proposal ofthe Authority to absorb him in its regularservice, intimated within such time asmay be specified in this behalf by theAuthority his intention of not becominga regular employee of the Authority,shall not be absorbed by the Authority inits regular service.

(2) As from the date determined by theCentral Government under the proviso to sub-section (2) of section 16, —

(a) the equipment and appliances relating toair navigation services and the buildingsused exclusively for such servicesimmediately before such day shall vestin Authority;

(b) all debts, obligations and liabilitiesincurred, all contracts entered into andall matters and things engaged to bedone by, with, or for the CentralGovernment immediately before suchday for or in connection with airnavigation services shall be deemed tohave been incurred, entered into andengaged to be done by, with, or for theAuthority ;

(c) all sums of money due to the CentralGovernment for or in connection withair navigation services immediatelybefore such day shall be deemed to bedue to the Authority;

(d) all suits and other legal proceedingsinstituted or which could have beeninstituted by or against the CentralGovernment immediately before suchday for any matter in connection with airnavigation services may be continued or

instituted by or against the Authority;

(e) every employee holding any office underthe Central Government immediatelybefore such day solely or mainly for orin connection with air navigationservices shall be treated as on deputationwith the Authority but shall hold hisoffice in the Authority by the same tenureand upon the same terms and conditionsof service as respects remuneration,leave, provident fund, retirement or otherterminal benefits as he would have heldsuch office if the Authority had not beenconstituted and shall continue to do sountil the Central Government, either onits own motion or at the request of theAuthority, recalls such employee to itsservice or until the Authority, with theconcurrence of the Central Government,duly obsorbs such employee in its regularservice, whichever is earlier :

Provided that during the period ofdeputation of any such employee withthe Authority, the Authority shall pay tothe Central Government in respect ofevery such employee, such contributiontowards his leave salary, pension andgratuity as the Central Government may,by order determine:

Provided further that any such employee,who has, in respect of the proposal ofthe Authority to absorb him in its regularservice intimated within such time asmay be specified in this behalf by theAuthority his intention of not becominga regular employee of the Authority,shall not be absorbed by the Authority inits regular service.

(3) If any dispute or doubt arises as to whichof the properties, right or liabilities of theCentral Government have been transferred tothe Authority or as to which of the employeesserving under the Central Government are to be

48


treated as on deputation with the Authority,under this section such dispute or doubt shallbe decided by the Central Government inconsultation with the Authority and the decisionof the Central Government thereon shall befinal.

(4) Notwithstanding anything contained inthe Industrial Disputes Act, 1947, (14 of 1947)or in any other law for the time being in force,the absorption of any employee by the Authorityin its regular service under this section shallnot entitle such employee to any compensationunder that Act or other law and no such claimshall be entertained by any court tribunal orother authority.

(5) In this section and in section 16, theexpression “air navigation services”, in relationto any airport, means air traffic services(including aeronautical and flight informationservices), aeronautical communication andnavigational aids and meteorological servicesat such airport.

13. Compulsory acquisition of land forthe Authority — Any land required by theAuthority for discharging its functions underthis Act shall be deemed to be needed for publicpurpose and such land may be acquired for theAuthority under the provisions of the LandAcquisition Act, 1894 (1 of 1894) or of anyother corresponding law for the time being inforce.

14. Contracts by the Authority — Subjectto the provisions of section 15, the Authorityshall be competent to enter into and performany contract necessary for the discharge of itsfunctions under this Act.

15. Mode of executing contracts on behalfof the Authority — (1) Every contract shall,on behalf of the Authority, be made by theChairman or such other member or such officer

of the Authority as may be generally or speciallyempowered in this behalf by the Authority andsuch contracts or class of contracts as may bespecified in the regulations shall be sealed withthe common seal of the Authority:

Provided that no contract exceeding suchvalue or amount as the Central Governmentmay, from time to time, by order, fix in thisbehalf shall be made unless it has beenpreviously approved by the Authority :

Provided further that no contract for theacquisition or sale of immovable property orfor the lease of any such property for a termexceeding thirty years and no other contractexceeding thirty years and no other contractexceeding such value or amount as the CentralGovernment may, from time to time, by order,fix in this behalf shall be made unless it hasbeen previously approved by the CentralGovernment.

(2) Subject to the provisions of sub-section(1), the form and manner in which any contractshall be made under this Act shall be such asmay be prescribed by regulations.

(3) No contract which is not in accordancewith the provisions of this Act and theregulations shall be binding on the Authority.

CHAPTER IV

FUNCTIONS OF THEAUTHORITY

16. Functions of the Authority — (1)Subject to the rules, if any, made by the CentralGovernment in this behalf, it shall be thefunction of the Authority to manage the airportsefficiently.

(2) It shall be the duty of the Authority toprovide at the airports such services and facilitiesas are necessary or desirable for the efficientoperation of air transport services there at :

49


Provided that the function of providing airnavigation services at the airports shall continueto be discharged by the Central Governmentuntil such date as that Government may, byorder, determine.

(3) Without prejudice to the generality ofthe provisions contained in sub-section (1) and(2), the Authority may —

(a) plan, develop, construct and maintainrunways, taxiways, aprons and terminaland ancillary buildings at the airports;

(b) construct residential buildings andcreate townships for its employees;

(c) establish and maintain hotels, restaurantsand rest—rooms at or near the airports;

(d) establish warehouses at the airports forthe storage or processing of goods;

(e) arrange for postal, money exchange,insurance and telephone facilities forthe use of passengers and other personsat the airports;

(f) make appropriate arrangements for watchand ward at the airports;

(g) regulate and control the plying ofvehicles, and the entry and exit ofpassengers and visitors, in the airportswith due regard to the protocol functionsof the Government of India;

(h) develop and provide consultancy servicesin India and abroad in relation to planningand development of airports or anyfacilities thereat;

(i) establish and manage heliports andairstrips;

(j) provide such transport facilities as are,in the opinion of the Authority, necessary

to the passengers travelling air;

(k) from one or more companies under theCompanies Act, 1956 (1 of 1956) orunder any other law relating to companiesto further the efficient discharge of thefunctions imposed on it by this Act; and

(l) take all such steps as may be necessaryor convenient for, or may be incidentalto the exercise of any power or thedischarge of any function conferred orimposed on it by this Act.

(4) In the discharge of its functions underthis section, the Authority shall have due regardto the development of air transport service andto the efficiency, economy and safety of suchservice.


(a) imposing an obligation on the Authorityto discharge any function or duty underthis section with respect to any airportin relation to which a notification hasnot been issued under sub-section (1) ofsection 12;

(b) authorising the disregard by the Authorityof any law for the time being in force; or

(c) authorising any person to institute anyproceeding in respect of a duty or liabilityto which the Authority or its officers orother employees would not otherwisebe subject.

CHAPTER V


17. Power of the Authority to chargefees, rent, etc. — The Authority may, —

50


(i) with the previous approval of the CentralGovernment, charge fees or rent, —

(a) for the landing, housing or parkingof aircraft or for any other serviceor facility offered in connectionwith aircraft operations, at anyairport, heliport or air-strip.

Explanation. — In this sub-clause“aircraft” does not include anaircraft belonging to the IndianDefence Services and “aircraftoperations” do not includeoperations of any aircraft belongingto the said Services;

(b) for the amenities given to thepassengers and visitors at anyairport, heliport or airstrip;

(c) for the use and enjoyment by personsof facilitates and other servicesprovided by the Authority at anyairport, heliport or airstrip;

(ii) with due regard to the instructions thatthe Central Government may give to theAuthority, from time to time, chargefees or rent from persons who are givenby the Authority any facility for carryingon any trade or business at any airport.

18. Additional capital and grants to theAuthority by the Central Government —The Central Government may, after dueappropriation made by Parliament by law in thisbehalf, —

(a) provided any capital, over and above thecapital provided under clause (c) of sub-section (1) of section 12, that may berequired by the Authority for thedischarge of its functions under this Actor for any purpose connected therewithon such terms and conditions as thatGovernment may determine;

(b) pay to the Authority, on such terms andconditions as the Central Governmentmay determine, by way of loans or grantssuch sums of money as the Governmentmay consider necessary for the efficientdischarge by the Authority of itsfunctions under this Act.

19. Fund of the Authority — (1) TheAuthority shall have its own fund and all receiptsof the Authority shall be credited thereto andall payments of the Authority shall be madetherefrom.

(2) The Authority shall have power, subjectto the provisions of this Act, to spend suchsums as it thinks fit to cover all administrativeexpenses of the Authority and on objects or forpurposes authorised by this Act and such sumsshall be treated as expenditure out of the fundof the Authority.

(3) All money standing at the credit of theAuthority which cannot immediately be appliedas provided in subs-section (2) shall bedeposited in the State Bank of India or in suchscheduled bank or banks and subject to suchconditions as may from time to time bespecified by the Central Government.

Explanation. — In this sub-section“scheduled bank” has the same meaning as inclause (e) of section 2 of the Reserve Bank ofIndia Act, 1934 (2 of 1934).

20. Allocation of surplus funds — (1) TheAuthority may, from time to time, set apartsuch amounts as it thinks fit as a reserve fund orfunds for the purpose of expanding existingfacilities or services or creating new facilitiesor services at any airport or for the purpose ofproviding against any temporary decrease ofrevenue or increase of expenditure fromtransient causes or for purposes of replacementor for meeting expenditure arising from loss ordamage from fire, cyclone, air-crash or other

51


accident or for meeting any liability arising outof any act or omission in the discharge of itsfunctions under this Act :

Provided that without prejudice to the rightof the Authority to establish specific reservesfor one or more specific purposes, the Authorityshall also have the power to establish a generalreserve :

Provided further that the sums set apartannually in respect of each or any of the specificand general reserves and the aggregate at anytime of such sums shall not exceed such limitsas may, from time to time, be fixed in thatbehalf by the Central Government.

(2) After making provision for such reservefund or funds and for bad and doubtful debts,depreciation in assets and all other matterswhich are usually provided for by companiesregistered and incorporated under theCompanies Act, 1956,(1 of 1956) the Authorityshall pay the balance of its annual net profits tothe Central Government.

21. Submission of programme ofactivities and financial estimates — (1) TheAuthority shall, before the commencement ofeach financial year, prepare a statement of theprogramme of its activities during theforthcoming financial year as well as financialestimate in respects thereof.

(2) The statement prepared under sub-section(1) shall, not less than three months before thecommencement of each financial year, besubmitted for approval to the CentralGovernment.

(3) The statement and the financial estimatesof the Authority may, with the approval of theCentral Government, be revised by the Authority.

22. Investment of funds — The Authoritymay invest its funds (including any reserve

fund) in the securities of the Central Governmentor in such other manner as may be prescribed.

23. Borrowing powers of the Authority—(1) The Authority may, with the consent of theCentral Government or in accordance with theterms of any general or special authority givento it by the Central Government, borrow moneyfrom any source by the issue of bonds,debentures or such other instruments as its maydeem fit for discharging all or any of itsfunctions under this Act.

(2) The Central Government may guaranteein such manner as it thinks fit the repayment ofthe principal and the payment of interest thereonwith respect to the loans borrowed by theAuthority under sub-section (1).

(3) Subject to such limits as the CentralGovernment may, from time to time, lay down,the Authority may borrow temporarily by wayof overdraft or otherwise such amounts as itmay require for discharging its functions underthis Act.

24. Accounts and audit — (1) The Authorityshall maintain proper accounts and other relevantrecords and prepare an annual statement ofaccounts including the profit and loss accountand the balance-sheet in such form as may beprescribed by the Central Government inconsultation with the Comptroller and Auditor-General of India.

(2) The accounts of the Authority shall beaudited annually be the Comptroller and Auditor-General of India and any expenditure incurredby him in connection with such audit shall bepayable by the authority to the Comptroller andAuditor- General of India.

(3) The Comptroller and Auditor— Generalof India and any person appointed by him inconnection with the audit of the accounts of the

52


Authority shall have the same rights andprivileges and authority in connection withsuch audit as the Comptroller and Auditor-General has in connection with the audit ofGovernment accounts and in particular, shallhave the right to demand the production ofbooks, accounts, connected vouchers,documents and papers and inspect any of theoffices of the Authority.

(4) The accounts of the Authority as certifiedby the Comptroller and Auditor- General ofIndia or any other person appointed by him inthis behalf together with the audit reportthereon shall be forwarded annually to theCentral Government and that Government shallcause the same to be laid before both Houses ofParliament.

CHAPTER VI

MISCELLANEOUS

25. Submission of annual reports toParliament— (1) The Authority shall, as soonas may be after the end of each financial year,prepare and submit to the Central Governmentin such form as may be prescribed a reportgiving an account of its activities during thatfinancial year and the report shall also give anaccount of the activities which are likely to beunder taken by the Authority during the nextfinancial year.

(2) The Central Government shall causesuch report to be laid before both Houses ofParliament as soon as may be after it issubmitted.

26. Delegation — The Authority may, bygeneral or special order in writing, delegate tothe Chairman or any other member or to anyofficer of the Authority, subject to suchconditions and limitations, if any, as may be

specified in the order, such of its powers andfunctions under this Act (expect the powersunder section 37) as its may deem necessary.

27. Authentication of orders and otherinstruments of the Authority — All ordersand decisions of the Authority shall beauthenticated by the signature of the Chairmanor any other member authorised by the Authorityin this behalf and all other instruments executedby the Authority shall be authenticated by thesignature of an officer of the Authorityauthorised by the Authority in this behalf.

28. Officers and employees of theAuthority to be public servants — All officersand employees of the authority shall, whenacting or purporting to act in pursuance of theprovisions of this Act or of any rule or regulationmade thereunder, be deemed to be public servantswithin the meaning of section 21, of the IndianPenal Code (45 of 1860).

29. Protection of action taken under theAct — No suit, prosecution or other legalproceeding shall lie against the Authority orany member or any officer or other employeeof the Authority for anything which is in goodfaith done or intended to be done in pursuanceof this Act or of any rule or regulation madethereunder or for any damage sustained by anyaircraft or vehicle in consequence of any defectin any of the airports or other things belongingto or under the control of the Authority.

30. Custody and disposal of lostproperty— Subject to such regulations as theAuthority may make in this behalf, the Authorityshall provide for securing the safe custody andrestoration of any property which, while not inproper custody, is found on any premisesbelonging to the Authority or under its overallcontrol or in any aircraft on any such premises.

53


31. Provisions relating to income-tax —For the purposes of the Income-tax Act, 1961(43 of 1961) or any other enactment for thetime being in force relating to income-tax orany other tax on income, profits or gains, theAuthority shall be deemed to be a companywithin the meaning of the Income-tax Act,1961 (43 of 1961) and shall be liable to taxaccordingly on its income, profits and gains.

32. Power of the Authority to undertakecertain works — The Authority may undertaketo carry out on behalf of any person any worksor services or any class of works or services onsuch terms and conditions as may be agreedupon between the Authority and the personconcerned.

33. Power of Central Government totemporarily divest the Authority of themanagement of any airport— (1) If at anytime the Central Government is of opinion thatin the public interest it is necessary or expedientso to do, it may, by order, direct the Authorityto entrust the management of any airport witheffect from such date and to such persons asmay be specified in the order and the Authorityshall be bound to comply with such direction :

Provided that before an order is made underthis sub-section the Authority shall be given areasonable opportunity of being heard in thematter.

(2) Where the management of any airport isentrusted to any person specified under sub-section (1) (hereafter in this section referredto as the authorised person), the Authority shallcease to exercise and discharge all its powersand functions under this Act in relation to suchairport and such powers and functions shall beexercised and discharged by the authorisedperson in accordance with the instructions, ifany, which the Central Government may give tothe authorised person from time to time:

Provided that no such power or function asmay be specified by the Central Government bygeneral or special order shall be exercised ordischarged by the authorised person exceptwith the previous sanction of the CentralGovernment.

(3) An order made under sub-section (1)shall, unless rescinded, be in operation for aperiod of six months from the date on which themanagement of the airport is entrusted to theauthorised person :

Provided that the Central Government mayextend such period for a further period notexceeding eighteen months.

(4) During the operation of an order madeunder sub-section (1), it shall be competent forthe Central Government to issue, from time totime, such directions to the Authority as arenecessary to enable the authorised person toexercise the powers and discharge the functionsof the Authority under this Act in relation to theairport, the management of which has beenentrusted to him and in particular to transferany sum of money from the fund of the Authorityto the authorised person for the management ofthe airport of the airport and every such directionshall be complied with by the Authority.

(5) On the cessor of operation of any ordermade under sub-section (1) in relation to anyairport, the authorised person shall cease toexercise and perform the powers and functionsof the Authority under this Act in relation tosuch airport and the Authority shall continue toexercise and perform such powers and functionsin accordance with the previsions of this Act.

(6) On the cesser of operation of anyorder made under sub-section (1) in relation toany airport, the authorised person shallhand over to the Authority any property(including any sum of money or other asset)

54


remaining with him in connection with themanagement of such airport.

(7) Anything done or any action takenlawfully by the authorised person in relation toany airport during the period of operation of anorder made under sub-section (1) shall bedeemed to have been done or taken by theAuthority and shall be binding on the Authority.

34. Power of Central Government tosupersede the Authority — (1) If at any time,the Central Government is of opinion —

(a) that on account of a grave emergency,the Authority is unable to discharge thefunctions and duties imposed on it by orunder the provisions of this Act; or

(b) that the Authority has persistently madedefault in complying with any directionissued by the central Government underthis Act or in the discharge of thefunctions and duties imposed on it by orunder the provisions of this Act and as aresult of which default the financialposition of the Authority or theadministration of any airport hasdeteriorated; or

(c) that circumstances exit which render itnecessary in the public interest so to do,the Central Government may, bynotification in the Official Gazette,supersede the Authority for such period,not exceeding six months, as may bespecified in the notification :

Provided that before issuing anotification under this sub-section forthe reasons mentioned in clause (b), theCentral Government shall give areasonable opportunity to the Authorityto show cause why it should not besuperseded and shall consider theexplanations and objections, if any, ofthe Authority.

(2) Upon the publication of a notificationunder sub-section (1) superseding, vacate theirofficers as such;

(a) all the members shall, as from the date ofsupersession, vacate their offices as such;

(b) all the powers, functions and dutieswhich may, by or under the provisions ofthis Act, be exercised or discharged byor on behalf of the Authority, shall, untilthe Authority is re-constituted undersub-section (3), be exercised anddischarged by such person or persons asthe central Government may direct;

(c) all property owned or controlled by theAuthority shall, until the Authority isreconstituted under sub-section (3), vestin the Central Government.

(3) On the expiration of the period ofsupersession specified in the notification issuedunder sub-section (1), the Central Governmentmay —

(a) extend the period of supersession forsuch further term, not exceeding sixmonths, as it may consider necessary; or

(b) re-constitute the Authority by freshappointment and in such case any personswho vacated their offices under clause(a) of sub-section (2) shall not bedeemed disqualified for appointment :

Provided that the Central Government may,at any time before the expiration of the periodof supersession, whether as originally specifiedunder sub-section (1) or as extended under thissub-section, take action under clause (b) ofthis sub-section.

(4) The Central Government shall cause anotification issued under sub-section (1) and afull report of any action taken under this sectionand the circumstances leading to such action tobe laid before both Houses of Parliament at theearliest opportunity.

55


35. Power of Central Government toissue directions — (1) Without prejudice tothe foregoing provisions of this Act, theAuthority shall, in the discharge of its functionsand duties under this Act, be bound by suchdirections on questions of policy as the CentralGovernment may give in writing to it from timeto time :

Provided that the Authority shall, as far aspracticable, be given opportunity to express itsviews before any direction is given under thissub-section.

(2) The decision of the Central Governmentwhether a question is one of policy or not shallbe final.

36. Power of Central Government tomake rules— (1) The Central Governmentmay, by notification in the Official Gazette,make rules for carrying out the purposes of thisAct.

(2) In particular and without prejudice to thegenerality of the foregoing power, such rulesmay provide for—

(a) the conditions of service of the Chairmanand other members under section 5including the salaries payable to theChairman and to the members who arerequired to render whole-time serviceand the fees and allowances payable tothe members who are required to renderpart-time service;

(b) the period of notice required to terminatethe appointment of any member, who isrequired to render part-time service andwho in not a servant of the Government,under section 5, and the period of noticethat may be given to the CentralGovernment by a member before heresigns his office, under that section;

(c) the conditions and limitations subject towhich the Authority may appoint officers

and other employees under sub-section(1) of section 10;

(d) the terms and conditions subject towhich the non-recurring expenditureincurred by the Central Government foror in connection with the purposes ofany airport shall be treated as the capitalprovided by the Central Government tothe Authority under clause (c) of sub-section (1) of section 12;

(e) the manner in which the Authority mayinvest its funds under section 22;

(f) the form in which the Authority shallprepare the annual statement of accountsincluding the profit and loss account andthe balance-sheet under section 24; and

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

(2A) The power to make rules conferredbyclauses (a) and (c) of sub-section (2) shallinclude the power to give retrospective effect,from a date not earlier than the date ofcommencement of this Act, to such rules or anyof them but no retrospective effect shall begiven to any rule so as to prejudicially affect theinterest of any person to whom such rule maybe applicable.

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

(3) Every rule made under this sectionsshall be laid as soon as may be after it is madebefore each House of Parliament while it is insession for a total period of thirty days whichmay be comprised in one session or in two ormore successive sessions, and if before theexpiry of the session immidiately following inwhich it is so laid or the session immediatelyfollowing the session or the sucessive sessionsaforesaid both Houses agree in making anymodification in the rule, or both Houses agreethat the rule should not be made, the rule shallthereafter have effect only in such modified

56


form or be of no effect, as the case may be; sohowever, that any such modification orannulment shall be without prejudice to thevalidity of anything previously done under thatrule.

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

37. Power of the Authority to makeregulations — (1) The Authority may makeregulations not inconsistent with this Act andthe rules made there-under to provide for allmatters for which provision is necessary orexpedient for the purpose of giving effect tothe provisions of this Act.

(2) Without prejudice to the generality ofthe foregoing power, such regulations mayprovide for —

(a) the times and places of the meeting ofthe Authority and the procedure to befollowed for the transaction of businessat such meetings under sub-section (1)of section 8;

(b) the conditions of service and theremuneration of officers and otheremployees appointed by the authority;

(c) the contracts or class of contracts whichare to be sealed with the common sealand of the Authority and the form andmanner in which a contract may be madeby the Authority;

(d) the storage or processing of goods inany warehouse established by theauthority under clause (d) of sub-section(3) of section (16) and the charging offees for such storage or processing;

(e) the custody and restoration of lostproperty and the terms and conditionsunder which lost property may be restoredto the person entitled thereto, undersection 30;

(f) the disposal of any lost property in caseswhere such property is not restored undersection 30;

(g) securing the safety of aircraft, vehiclesand persons using the airport andpreventing danger to the public arisingfrom the use and operations of aircraftin the airport;

(h) preventing obstruction within the airportfor its normal functioning;

(i) prohibiting the parking or waiting of anyvehicle or carriage within the airportexcept at places specified by theAuthority;

(j) prohibiting or restricting access to anypart of the airport;

(k) preserving order within the airport andpreventing damage to property therein ;

(l) regulating or restricting advertisingwithin the airport;

(m) requiring any person, if so directed by anofficer appointed by the Authority inthis behalf, to leave the airport or anyparticular part of the airport; and

(n) generally for the efficient and propermanagement of the airport.

(3)The power to make regulations conferredby clause (b) of sub-section (2) shall includethe power to give retrospective effect, from adate not earlier than the date of commencementof this Act, to such regulations or any of thembut no retrospective effect shall be given to anyregulation so as to prejudicially affect theinterest of any person to whom such regulationmay be applicable.


57


(4) The Central Government shall cause everyregulation made under this section to be laid, assoon as may be after it is made, before eachHouse of Parliament, while it is in session, fora total period of thirty days which may becomprised in one session or in two or moresuccessive sessions aforesaid, both Housesagree in making any modification in theregulation, or both Houses agree that theregulation should not be made, the regulationshall thereafter have effect only in such modifiedform or be of no effect, as the case may be; sohowever, that any such modification orannulment shall be without prejudice to thevalidity of anything previously done under thatregulation.


38. Supplemental provisions respectingregulations — (1) Any regulation which maybe made by the Authority under this Act may bemade by the Central Government by notificationin the official Gazette within one year of theconstitution of the Authority and any regulationso made may be altered or rescinded by theAuthority by means of a regulation made by itunder this Act.

(2) No regulation made by the Authorityunder this Act shall have effect until it has beenapproved by the Central Government andpublished in Official Gazette.

39. Penalty for breach of certainregulations — Any regulation made under anyof the clauses (g) to (m) inclusive of sub-section (2) of section 37 may provide that acontravention thereof shall be punishable withfine which may extend to five hundred rupeesand in the case of a continuing contraventionwith an additional fine which may extend to

twenty rupees for every day during which suchcontravention continues after conviction forthe first such contravention.

40. Power to remove difficulties — (1) Ifany difficulty arises in giving effect to theprovisions of this Act, the Central Governmentmay, by general or special order published inthe Official Gazette, make such provisions notinconsistent with the provisions of this Act asappear to it to be necessary or expedient for theremoval of the difficulty :

Provided that no such order shall be madeafter the expiration of one year from thecommencement of this Act.

(2) Every order made under sub-section (1)shall be laid, as soon as may be after it is made,before each House of Parliament while it is insession for a total period of thirty days whichmay be comprised in one session or in twosuccessive sessions and if before the expiry ofthe session in which it is so laid or the sessionimmediately following both Houses agree inmaking any modification in the order or bothHouses agree that the order should not be made,the order shall thereafter have effect only insuch modified form or be of no effect, as thecase may be; so, however, that any suchmodification or annulment shall be withoutprejudice to the validity of anything previouslydone under that order.

41. Amendment of Act 22 of 1934 — Insub-section (2) of section 5 of the Aircraft Act,1934, for clause (b), the following clause shallbe substituted, namely :—

“(b) the licensing inspection andregulation of aerodromes, the conditionsunder which aerodromes may bemaintained, the prohibition or regulation

58


of the use of unlicensed aerodromes andthe fees which may be charged at thoseaerodromes to which the InternationalAirports Authority Act, 1971 does notapply or is not made applicable :

Provided that until the date determinedby the Central Government under theproviso to sub section (2) of section 16of the International Airports Authority

Act, 1971 any rule made under thisclause may provide for the charging offees for providing air traffic services(including aeronautical and flightinformation services), aeronauticalcommunication and navigational aids andmeteorological services at anyaerodrome to which the said Act appliesor is made applicable; “.

59


CHAPTER V

THE NATIONAL AIRPORTS AUTHORITY ACT, 1985

(64 OF 1985)

60

CHAPTER V


TABLE OF CONTENTS

SECTIONS PAGES

CHAPTER I

Preliminary

1. Short title, commencement and application . . . . . 63

2. Definitions . . . . . . . . . . 63

CHAPTER II

The National Airports Authority

3. Constitution and incorporation of the Authority . . . . . 64

4. Disqualification for office of member . . . . . . 64

5. Term of office and conditions of service of members . . . . 64

6. Vacation of office of member . . . . . . . 65

7. Eligibility of member for re-appointment . . . . . . 65

8. Meetings . . . . . . . . . . 65

9. Vacancies, etc., not to invalidate proceedings of the Authority . . . 66

10. Appointment of officers and other employees of the Authority . . . 66

11. Authority to act on business principles . . . . . . 66

CHAPTER III

Functions of the Authority

12. Functions of the Authority . . . . . . . . 66

CHAPTER IV

Property and Contracts

13. Transfer of assets and liabilities of Central Government to the Authority . 67

14. Compulsory acquisition of land for the Authority . . . . 69

15. Contracts by the Authority . . . . . . . . 69

16. Mode of executing contracts on behalf of the Authority. . . . 69

61

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.. . . . . 69

18. Additional capital and frants to the Authority by the Central Government . 70

19. Fund of the Authority . . . . . . . . 70

20. Allocation of surplus funds . . . . . . . . 71

21. Submission of programme of activities and financial estimates . . . 71

22. Investment of funds . . . . . . . . . 71

23. Borrowing powers of the Authority . . . . . . . 71

24. Accounts and audit . . . . . . . . . 71

CHAPTER VI

Miscellaneous

25. Submission of annual report. . . . . . . . 72

26. Delegation . . . . . . . . . . 72

27. Authentication of orders and other instruments of the Authority . . . 72

28. Officers and employees of the Authoruity to be public servants . . . 72

29. Protection of action taken in good faith . . . . . . 72

30. Custody and disposal of lost property . . . . . . 73

31. Provisions relating to income-tax . . . . . . . 73

32. Power of the Authority to undertake certain works. . . . . 73

33. Power to issue directions . . . . . . . . 73

34. Power of Central Government to temporarily divest the Authority of themanagement of any aerodrome . . . . . . . 73

35. Power of Central Government to supersede the Authority. . . . 74

36. Power of Central Government to issue directions. . . . . 75

37. Power to make rules . . . . . . . . . 75

38. Power to make regulation . . . . . . . . 76

39. Supplementary provisions respecting regulations. . . . . 77

40. Rules and Regulations to be laid before Parliament. . . . . 77


42. Amendment of Act 22 of 1934. . . . . . . . 78

62

THE NATIONAL AIRPORTS AUTHORITY OF INDIA ACT, 1985 Chap. V

A bill to provide for the establishment of anAuthority for the management of aerodromesand civil enclaves whereat domestic air transportservices are operated or are intended to beoperated and of all communication stations andfor matters connected therewith:

Be it enacted by Parliament in the Thirty-sixth year of the Republic of India as follows:-

CHAPTER I

PRELIMINARY

1. Short title, commencement andapplication— (1) This Act may be called theNational Airports Authority Act, 1985.

(2) It shall come into force on such date asthe Central Government may, by notification inthe official Gazette, appoint.

(3) it applies to -

(a) all aerodromes whereat domestic airtransport services are operated or areintended to be operated, other than -

(i) aerodromes to which theInternational Airports Authority Act,1971 applies; and

(ii ) aerodromes and airfields belongingto, or subject to the control of, anyarmed force of the Union;

(b) all civil enclaves; and

(c) all aeronautical communication stations.

2. Definitions— In this Act, unless thecontext otherwise requires, -

(a) “air traffic service” includes flightinformation service, alerting service, airtraffic advisory service, air traffic controlservice, area control service, approachcontrol service and aerodrome controlservice;

(b) “air transport service” means any service, for any kind of remuneration,whatsoever, for the transport by air ofpersons, mail or any other thing, animateor inanimate, whether such servicerelates to a single flight or series offlights ;

(c) “Authority” means the National AirportsAuthority constituted under section 3;

(d) “civil enclave” means the area, if any,allotted at an aerodrome belonging toany armed force of the Union, for use bypersons availing of any air transportservices from such aerodrome or for thehandling of baggage or cargo by suchservice, and includes land comprising ofany building and structure on such area;

(e) “heliport” means an area, either at groundlevel or elevated on a structure, used orintended to be used for the landing andtake off of helicopters and includes any

CHAPTER V


(64 OF 1985)

(December 7, 1985)

63

THE NATIONAL AIRPORTS AUTHORITY ACT, 1985 CHAP. V

area for parking helicopters and allbuildings and structures thereon orappertaining thereto;

(f) “member” means a member of theAuthority and includes the Chairman,but does not include, for the purposes ofsections 4, 5, 6 and 7, an ex-officiomember referred to in clause (b) of sub-section (3) of section 3;

(g) “prescribed” means prescribed by rulesmade under this Act;

(h) “regulations “ means regulations madeunder this Act; and

(i) words and expressions used herein andnot defined but defined in the AircraftAct, 1934, shall have the meanings,respectively, assigned to them in thatAct.

CHAPTER II

THE NATIONAL AIRPORTSAUTHORITY

3. Constitution and incorporation of theAuthority — (1) With effect from thecommencement of this Act, the CentralGovernment shall constitute an authority to becalled the National Airports Authority.

(2) The Authority shall be a body corporateby the name aforesaid having perpetualsuccession and a common seal, with power,subject to the provisions of this Act, to acquire,hold and dispose of property both movable andimmovable, and to contract and shall by the saidname sue and be sued.

(3) The Authority shall consist of -

(a) a Chairman to be appointed by the CentralGovernment;

(b) the Director-General of Civil Aviation,ex-offcio; and

(c) not less than eight and not more thanfourteen members to be appointed bythe Central Government.

(4) The Chairman shall be a whole- timemember and other members referred to in clause(c) of sub-section (3) may be appointed aswhole time or part-time members as the CentralGovernment may think fit.

(5) The Chairman and the members referredto in clause (c) of sub-section (3) shall bechosen from among persons who have specialknowledge and experience in air transport orother transport services, industry commercialor financial matters or administration and fromamong persons who are capable or representingorganizations of workers and consumers.

4. Disqualification for office of member—A person shall be disqualified for beingappointed as a member if he—


(b) is an undischarges insolvent; or

(c) is of unsound mind and stands so declaredby a competent court; or

(d) has been removed or dismised from theservice of the Government or a bodycorporate owned or controlled by theGovernment; or

(e) has in the opinion of the CentralGovernment such financial or otherinterest in the Authority as is likely toaffect prejudicially the discharge by himof his functions as a member.

5. Term of office and conditions of serviceof members — (1) Subject to the provisions ofsection 6, every member (other than the ex

64


officio member) shall hold office for a periodof three years from the date on which he assumesoffice:

Provided that the Central Government may-

(a) terminate the appointment of any whole-time member, who is not a servant of theGovernment, after giving him notice fora period of not less than three months orin lieu thereof, on payment of an amountequal to his salary and allowances, ifany, for a period of three months;

(b) terminate the appointment of any part-time member who is not a servant of theGovernment after giving him notice forsuch period as may be prescribed; and

(c) terminate at any time the appointment ofany member who is a servant of theGovernment.


(3) Any member may resign his office bygiving notice in writing for such period as maybe prescribed, to the Central Government and,on such resignation being notified in the OfficialGazette by that Government, such member shallbe deemed to have vacated his office.

(4) A casual vacancy caused by theresignation of a member under sub-section (3)or otherwise may be filled by fresh appointmentand the person so appointed shall hold officefor the remaining period for which the memberin whose place he is appointed would have heldoffice.

6. Vacation of office of member—TheCentral Government shall remove a member ifhe -

(a) becomes subject to any of the dis-qualifications mentioned in section 4:

Provided that no member shall beremoved on the ground that he has

become subject to the disqualificationmentioned in clause (e) of that section,unless he has been given a reasonableopportunity of being heard in the matter; or


(c) is, without obtaining leave of absencefrom the Authority, absent from threeconsecutive meetings of the Authority ;or

(d) in the opinion of the CentralGovernment, has so abused his positionas to render his continuance in officedetrimental to the public interest:

Provided that no member shall be removedunder this clause unless he has been given areasonable opportunity of being heard in thematter.

7. Eligibility of member forreappointment — Any person ceasing to be amember shall, unless disqualified under section4, be eligible for reappointment as such.

8. Meetings — (1) The Authority shallmeet at such times and places, and shall observesuch rules of procedure in regard to thetransaction of the business at its meetings(including the quorum at such meetings) as maybe provided by regulations.

(2) The Chairman, or, if for any reason he isunable to attend any meeting of the authorityany other member chosen by the memberspresent at the meeting shall preside at themeeting.

(3) All questions which come up before anymeeting of the Authority shall be decided by amajority of the votes of the members presentand voting, and, in the event of an equality ofvotes, the Chairman, or in his absence, theperson presiding, shall have and exercise asecond or casting vote.

65


9. Vacancies, etc., not to invalidateproceedings of the Authority — No act orproceeding of the Authority shall be invalidmerely by reason of -

(a) any vacancy in, or any defect in theconstitution of, the Authority; or

(b) any defect in the appointment of a personacting as a member of the Authority; or

(c) any irregularity in the procedure of theAuthority not affecting the merits of thecase.

10. Appointment of officers and otheremployees of the Authority — For the purposeof enabling it efficiently to discharge itsfunctions under this Act, the Authority shall,subject to the provisions of section 13 and tosuch rules as may be made in this behalf, appoint(whether on deputation or otherwise) suchnumber of officers and other employees as itsmay consider necessary:

Provided that the appointment of suchcategory of officers, as may be specified afterconsultation with the Chairman in such rules,shall be subject to the approval of the CentralGovernment.

(2) Subject to the provisions of section 13,every officer or other employee appointed bythe Authority shall be subject to such conditionsof service and shall be entitled to suchremuneration as may be determined byregulations.

11. Authority to act on businessprinciples — In the discharge of its functionsunder this Act, the Authority shall act, so far asmay be, on business principles.

CHAPTER III

FUNCTIONS OF THE AUTHORITY

12. Functions of the Authority — (1)Subject to the rules, if any, made by the Central

Government in this behalf, it shall be thefunction of the Authority to manage theaerodromes, the civil enclaves and theaeronautical communication stationsefficiently.

(2) It shall be the duty of the Authority toprovide air traffic service and air transportservice at any aerodrome and civil enclaves.

(3) Without prejudice to the generality ofthe provisions contained in sub-sections (1)and (2), the Authority may —

(a) plan, develop, construct and maintainrunways, taxiways, aprons and terminalsand ancillary buildings at the aerodromesand civil enclaves;

(b) plant, procure, install and maintainnavigational aids, communicationequipment, beacons and ground aids atthe aerodromes and at such locations asmay be considered necessary for safenavigation and operation of aircraft;

(c) provide air safety services and searchand rescue facilities in co-ordinationwith other agencies;

(d) establish schools or institutions orcentres for the training of its officersand employees in regard to any matterconnected with the purposes of this Act;

(e) construct residential buildings for itsemployees;

(f) establish and maintain hotels, restaurantsand restrooms at or near the aerodromes;

(g) establish warehouses and cargocomplexes at the aerodromes for thestorage or processing of goods;

(h) arrange for postal, money exchange,insurance and telephone facilities forthe use of passengers and other personsat the aerodromes and civil enclaves;

66


(i) make appropriate arrangements of watchand ward at the aerodromes and civilenclaves;

(j) regulate and control the plying ofvehicles, and the entry and exit ofpassengers and visitors, in theaerodromes and civil enclaves with dueregard to the security and protocolfunctions of the Government of India;

(k) develop and provide consultancy servicesin India and abroad in relation to planningand development of airports,airnavigation services, ground aids andsafety services or any facilities thereat;

(l) establish and manage heliports;

(m) provide such transport facility as are, inthe opinion of the Authority, necessaryto the passengers travelling by air;

(n) for an one or more companies under theCompanies Act, 1956 or under any otherlaw relating to companies to further theefficient discharge of the functionsimposed on it by this Act;

(o) take all such steps as may be necessaryor convenient for, or may be incidentalto, the exercise of any power or thedischarge of any function conferred orimposed on it by this Act; and

(p) perform any other function considerednecessary or desirable by the CentralGovernment for ensuring the safe andefficient operation of aircraft to, fromand across the air space of India.

(4) Notwithstanding anything contained inthe International Airports Authority Act, 1971or sub-section (3) of section 1 or any otherprovision of this Act, the Authority shall, if the

Central Government so directs by notificationin the Official Gazette, discharge the functionof providing air navigation services referred toin the proviso to sub-section (2) of section 16of the International Airports Authority Act,1971 at the airports to which that Act applies.



(a) imposing an obligation on the Authorityto discharge any function or duty [otherthan the function mentioned in sub-section (4) and the duties arisingtherefrom] with respect to any aerodrometo which this Act does not apply;

(b) authorising the disregard by the Authorityof any law for the time being in force; or

(c) authorising any person to institute anyproceeding in respect of duty or liabilityto which the Authority or its officers orother employees would not otherwisebe subject.

CHAPTER IV


13. Transfer of assets and liabilities ofthe Central Government to the Authority—(1) As from such date as the Central Governmentmay appoint by notification in the OfficialGazette -

(a) all properties and other assets includingthe equipment and navigational andground aids relating to air traffic servicesand vested in the Central Government

67


for the purposes of any aerodrome, civilenclave and aero-nautical communicationstation and administered by the Director-General of Civil Aviation immediatelybefore such date shall vest in theAuthority;

(b) all properties and other assets vested inthe Central Government for the purposesof Civil Aviation Training Centre,Allahabad and the Fire Service TrainingSchool, Calcutta and administered bythe Director-General of Civil Aviationimmediately before such date shall vestin the Authority;

(c) all residential buildings owned by theDirector-General of Civil Aviationimmediately before such date shall vestin the Authority;

(d) all debts, obligations and liabilitiesincurred, all contracts entered into, andall matters and things engaged to be doneby, with, or for the Central governmentimmediately before such date for or inconnection with the purposes of anyaerodrome, civil enclave, aeronauticalcommunication station, the CivilAviation Training Centre and the FireServices Training School shall be deemedto have been incurred, entered into andengaged to be done by, with or for theAuthority;

(e) all non-recurring expenditure incurredby the Central Government for or inconnection with the purposes of anyaerodrome, civil enclave, aeronauticalcommunication station, Civil AviationTraining Centre, Fire Services TrainingSchool up to such date and declared tobe capital expenditure by the CentralGovernment shall subject to such termsand conditions as may be prescribed bythe Central Government, be treated ascapital provided by the CentralGovernment to the Authority.

(f) all sums of money due to the CentralGovernment in relation to anyaerodrome, civil enclave, aeronauticalcommunication station, Civil AviationTraining Centre and Fire Service TrainingSchool immediately before such dateshall be deemed to be due to the Authority;

(g) all suits and other legal proceedingsinstituted or which could have beeninstituted by or against the CentralGovernment immediately before suchdate for any matter in relation to anyaerodrome, civil enclave, aeronauticalcommunication station, Civil AviationTraining Centre and Fire ServicesTraining School may be continued orinstituted by or against the Authority.

(2) If any dispute or doubt arises as to whichof the properties, rights or liabilities of theCentral Government have been transferred tothe Authority or as to which of the employeesserving under the Director- General of CivilAviation are to be treated as on deputation withthe Authority under this section, such disputeor doubt shall be decided by the CentralGovernment in consultation with the Authorityand the decision of the Central Governmentthereon shall be final.

(3) Every employee holding any office underthe Director-General of Civil Aviationimmediately before the commencement of thisAct solely or mainly for or in connection withsuch affairs of the directorate-General of CivilAviation as are relevant to the functions of theAuthority under this Act as may be determinedby the Central Government shall be treated ason deputation with the Authority but shall holdhis office in the Authority by the same tenureand upon the same terms and conditions ofservice as respects remuneration, leave,provident fund, retirement or other terminalbenefits as he would have held such office if theAuthority had not been constituted and shallcontinue to do so until the Authority duly absorbssuch employee in its regulate service:

68


Provided that during the period of deputationof any such employee with the Authority, theAuthority shall pay the Central Government inrespect of every such employee, suchcontribution toward his leave, salary, pensionand gratuity as the Central Government may, byorder, determine:

Provided further that any such employee,who has, in respect of the proposal of theAuthority to absorb him in his regular service,intimated within such time as may be specifiedin this behalf by the Authority his intention ofnot becoming a regular employee of theAuthority, shall not be absorbed by the Authority.

(4) Notwithstanding anything contained inthe Industrial Disputes Act, 1947 or in anyother law for the time being in force, theabsorption of any employee by the Authority inits regular service under this section shall notentitle such employee to any compensationunder that Act or other law and no such claimshall be entertained by any court, tribunal orother authority.

14. Compulsory acquisition of land forthe Authority — Any land required by theAuthority for discharging its functions underthis Act shall be deemed to be needed for apublic purpose and such land may be acquiredfor the Authority under the provisions of theLand Acquisition Act, 1894 or of any othercorresponding law for the time being in force.

15. Contracts by the Authority — Subjectto the provisions of section 16, the Authorityshall be competent to enter into and performany contract necessary for the discharge of itsfunctions under this Act.

16. Mode of executing contracts on behalfof the Authority — (1) Every contract shall,on behalf of the Authority, be made by theChairman or such other member or such officerof the Authority as may be generally or speciallyempowered in this behalf by the Authority andsuch contracts or class of contracts as may bespecified in the regulations shall be sealed withthe common seal of the Authority :

Provided that no contract exceeding suchvalue or amount as the Central Governmentmay, from time to time, by order, fix in thisbehalf shall be made unless it has beenpreviously approved by the Authority :

Provided further that no contract for theacquisition or sale of immovable property orfor the lease of any such property for a termexceeding thirty years and no other contractexceeding such value or amount as the CentralGovernment may, from time to time, by order,fix in this behalf shall be made unless it hasbeen previously approved by the CentralGovernment.

(2) Subject to the provisions of sub-section(1), the form and manner in which any contractshall be made under this Act shall be such asmay be specified by regulations.


CHAPTER V


17. Power of the Authority to chargefees, rent, etc.— (1) The Authority may, -

(i) with the previous approval of the CentralGovernment, charge fees or rent, -

69


(a) for the landing, housing or parkingof aircraft or for any other serviceor facility offered in connectionwith aircraft operations at anyaerodrome or heliport.

Explanation. - In this sub-clause“aircraft” does not include anaircraft belonging to any armedforce of the Union and “aircraftoperations” do not includeoperations of any aircraft belongingto the said force;

(b) for providing air traffic services,ground safety services, aeronauticalcommunications and navigationalaids and meteorological services atany aerodrome and at anyaeronautical communicationstations;

(c) for the amenities given to thepassengers and visitors at anyaerodrome, civil enclave or heliport;

(d) for the use and enjoyment by personsof facilities and other servicesprovided by the Authority at anyaerodrome, civil enclave or heliport;

(ii) with due regard to the instructions thatthe Central Government may give to theAuthority, from time to time, chargefees or rent from persons who are givenby the Authority any facility for carryingon any trade or business at any aerodromeor heliport.

(2) The Authority may also charge, with theprevious approval of the Central Government,fees for providing air navigation servicesreferred to in sub-section (4) of section 12 atthe airports to which the International AirportsAuthority Act, 1971 applies.

18. Additional capital and grant to theAuthority by the Central Government —

The Central Government may, after dueappropriation made by Parliament by law in thisbehalf, -

(a) provide any capital, over and above thecapital provided under clause (e) of sub-section (1) of section 13 that may berequired by the Authority for thedischarge of its functions under this Actor for any purpose connected therewithon such terms and conditions as thatGovernment may determine;

(b) pay to the Authority, on such terms andconditions as the Central Governmentmay determine, by way of loans or grantssuch sums of money as that Governmentmay consider necessary for the efficientdischarge by the Authority of itsfunctions under this Act.

19. Fund of the Authority — (1) TheAuthority shall have its own fund and all receiptsof the Authority shall be credited thereto andall payments of the Authority shall be madetherefrom.

(2) The Authority shall have power, subjectto the provisions of this Act, to spend suchsums as its thinks fit to cover all administrativeexpenses of the Authority and on objects or forpurposes authorised by this Act and such sumsshall be treated as expenditure out of the fundof the Authority.

(3) All moneys standing at the credit of theAuthority which cannot immediately be appliedas provided in sub-section (2), shall be depositedin the State Bank of India or in such scheduledbank or banks and subject to such conditions asmay, from time to time, be specified by theCentral Government.

Explanation. - In this sub-section,“scheduled bank” has the same meaning as inclause (e) of section 2 of the Reserve Bank ofIndia Act, 1934. (2 of 1934)

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20. Allocation of surplus funds — (1) TheAuthority may, from time to time, set apartsuch amounts as its thinks fit as a reserve fundor funds for the purpose of expanding existingfacilities or services or creating new facilitiesor services at any aerodrome or for the purposeof providing against any temporary decrease ofrevenue or increase of expenditure fromtransient causes or for purposes of replacementor for meeting expenditure arising from loss ordamage from fire, cyclone, air-crash or otheraccident or for meeting any liability arising outof any act or omission in the discharge of itsfunctions under this Act :

Provided that without prejudice to the rightof the Authority to establish specific reservesfor one or more specific purposes, the Authorityshall also have the power to establish a generalreserve :

Provided further that the sums set apartannually in respect of each or any of the specificand general reserves and the aggregate at anytime of such sums shall not exceed such limitsas may, from time to time be fixed in that behalfby the Central Government.

(2) After making provision for such reservefund or funds and for bad and doubtful debts,depreciation in assets and all other matterswhich are usually provided for by companiesregistered and incorporated under theCompanies Act, 1956, the Authority shall paythe balance of its annual net profits to theCentral Government. (1 of 1956)

21. Submission of programme ofactivities and financial estimates — (1) TheAuthority shall, before the commencement ofeach financial year, prepare a statement of theprogramme of its activities during theforthcoming financial year as well as a financialestimate in respect thereof.

(2) The statement prepared under sub-section (1) shall, not less than three monthsbefore the commencement of each financialyear, be submitted for approval to the CentralGovernment.

(3) The statement and the financial estimatesof the Authority may with the approval of theCentral Government, be revised by theAuthority.

22. Investment of funds — The Authoritymay invest its funds (including any reservefund) in the securities of the Central Governmentor in such other manner as may be prescribed.

23. Borrowing powers of the Authority—(1) The Authority may, with the consent of theCentral Government or in accordance with theterms of any general or special authority givento it by the Central Government, borrow moneyform any source by the issue of bonds,debentures or such other instruments as it maydeem fit for discharging all or any of itsfunctions under this Act.

(2) The Central Government may guaranteein such manner as its thinks fit, the repaymentof the principal and the payment of interestthereon with respect to the loans borrowed bythe Authority under sub-section (1).

(3) Subject to such limits as the CentralGovernment may, from time to time, lay down,the Authority may borrow temporarily by wayof overdraft or otherwise such amount as itsmay require for discharging its functions underthis Act.

24. Accounts and audit — (1) The Authorityshall maintain proper accounts and other relevantrecords and prepare an annual statement ofaccounts including the profit and loss accountand the balance-sheet in such form as may beprescribed by the Central Government inconsultation with the Comptroller and Auditor-General of India.

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(3) The Comptroller and Auditor- Generalof India and any person appointed by him inconnection with the audit of the accounts of theAuthority shall have the same rights andprivileges and authority in connection withsuch audit as the Comptroller and Auditor-General has in connection with the audit ofGovernment accounts and, in particular, shallhave the right to demand the production ofbooks, accounts, connected vouchers,documents and papers and inspect any of theoffices of the Authority.

(4) The accounts of the Authority as certifiedby the Comptroller and Auditor- General ofIndia or any other person appointed by him inthis behalf together with the audit report thereonshall be forwarded annually to the CentralGovernment and that Government shall causethe same to be laid before both Houses ofParliament.

CHAPTER VI

MISCELLANEOUS

25. Submission of annual report — (1)The Authority shall, as soon as may be after theend of each financial year, prepare and submitto the Central Government in such form as maybe prescribed a report giving an account of itsactivities during that financial year and thereport shall also give an account of the activitieswhich are likely to be undertaken by the Auditingthe next financial year.


26. Delegation — The authority may, bygeneral or special order in writing, delegate to

the Chairman or any other member or to anyofficer of the Authority, subject to suchconditions and limitations, if any, as may bespecified in the order, such conditions andlimitations, if any, as may be specified in theorder, such of its powers and functions underthis Act (except the powers under section 38)as it may deem necessary.

27. Authentication of orders and otherinstruments of the Authority — All ordersand decisions of the Authority shall beauthenticated by the signature of the Chairmanor any other member authorised by the Authorityin this behalf and all other instruments executedby the Authority shall be authenticated by thesignature of an officer of the Authorityauthorised by it in this behalf.

28. Officers and employees of theAuthority to be public servants — All officersand employees of the Authority shall, whenacting or purporting to act in pursuance of theprovisions of this Act or of any rule or regulationmade thereunder, be deemed to be public servantswithin the meaning of section 21 of the IndianPenal code.

29. Protection of action taken in goodfaith — No suit, prosecution or other legalproceeding shall lie against the Authority orany member or any officer or other employeeof the Authority for anything which is in goodfaith done or intended to be done in pursuanceof this Act or of any rule or regulation madethereunder or for any damage sustained by anyaircraft or vehicle in consequence of any defectin any of the aerodromes, civil enclaves,aeronautical communication stations or otherthings belonging to or under the control of theAuthority.

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(1) shall be complied with by the person orpersons to whom such direction is issued.

(3) If any person wilfully fails to complywith any direction issued under this section, heshall be punishable with imprisonment for aterm which may extend to six months or withfine which may extend to five thousand rupees,or with both.

34. Power of the Central Government totemporarily divest the Authority of themanagement of any aerodrome — (1) If atany time the Central Government is of opinionthat in the public interest it is necessary orexpedient so to do, it may, by order, direct theAuthority to entrust the management of anyaerodrome, civil enclave or aeronauticalcommunication station with effect from suchdate and to such person as may be specified inthe order and the Authority shall be bound tocomply with such direction :


(2) Where the management of anyaerodrome, civil enclave or aeronauticalcommunication station is entrusted to any personspecified under sub-section (1) (hereafter inthis section referred to as the authorisedperson), the Authority shall cease to exerciseand discharge all its powers and functions underthis Act in relation to such aerodrome, civilenclave or aeronautical communication stationand such powers and functions shall be exercisedand discharged by the authorised person inaccordance with the instructions, if any, whichthe Central Government may give to theauthorised person from time to time.

30. Custody and disposal of lostproperty— Subject to such regulations as theAuthority may make in this behalf, the Authorityshall provide for seccuring the safe custody andrestoration of any property which, while not inproper custody, is found on any premisesbelonging to the Authority or under its overallcontrol or in any aircraft on any such premises.

31. Provisions relating to income-tax —For the purpose of the Income- tax Act, 1961 orany other enactment for the time being in forcerelating to income-tax or any other tax oninccome, profits or gains, the Authority shallbe deemed to be a company within the meaningof the Income-tax, 1961 and shall be liable totax accordingly on its income, profits and gains.

32. Power of the Authority to undertakecertain works — The Authority may undertaketo carry out on behalf of any person any worksor services or any class of works or services onsuch terms and conditions as may be agreed uonbetween the Authority and the person concerned.

33. Power to issue directions — (1) TheAuthority or any offcer specially authorised byit in this behalf may, from time to time, byorder, issue directions, consistent withprovisions of the Aircraft Act, 1934, and therules made thereunder, with respect to any ofthe matters specified in clauses (f), (h), (i), (j),(k), (m), (p), (q), and (r) of sub-secction (2) ofsectionn 5 of that Act, to any person or personsengaged in aircraft operations or using anyaerodrome or civil enclave, in any case wherethe Authority or the officer is satisfied that inthe interests of the security of India or forsecuring the security of the aircraft it isneccessary to do so.

(2) Every direction issued under sub-section

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Provided that no such power or function asmay be specified by the Central Government bya general or special order shall be exercised ordischarged by the authorised person exceptwith the previous sanction of the CentralGovernment.

(3) An order made under sub-section (1)shall unless rescinded, be in operation for aperiod of six months from the date on which themanagement of the aerodrome, civil enclave oraeronautical communication station is entrustedto the authorised person :

Provided that the Central Government mayextend such period for a further period or periodnot exceeding eighteen months.

(4) During the operation of an order madeunder sub-section (1), it shall be competent forthe Central Government to issue, from time totime, such directions to the Authority as arenecessary to enable the authorised person toexercise the powers and discharge the functionsof the Authority under this Act in relation to theaerodrome civil enclave or aeronauticalcommunication station, the management ofwhich has been emrusted to his and in particularto transfer any sum of money from the fund ofthe Authority to the authorised person for themanagement of the aerodrome, civil enclave oraeronautical communication station and everysuch direction shall be complied with by theAuthority.

(5) On the cesser of operation of any ordermade under sub-section (1) in relation to anyaerodrome, civil enclave or aeronauticalcommunication station, the authorised personshall cease to exercise and perform the powersand functions of the Authorised under this Actin relation to such aerodrome, civil enclave oraeronautical communication station and theAuthority shall continue to exercise and performsuch powers and functions in accordance withthe provisions of this Act.

(6) On the cesser of opertion of any ordermade under sub-section (1) in relation to anyaerodrome, civil enclave, aeronauticalcommunication station, the authorised personshall hand over to the Authority any property(including any sum of money or other asset)remaining with him in connection with themanagement of such aerodrome, civil enclave,aeronautical communication station.

(7) Anything done or any action takenlawfully by the authorised person in relation toany aerodrome, civil enclave, aeronauticalcommunication station during the period ofoperation of an order made under sub-section(1) shall be deemed to have been done or takenby the Authority and shall be binding on theAuthority.

35. Power of the Central Government tosupersede the Authority — (1) If, at any time,the Central Government is of opinion—

(a) that on account of a grave emergency,the Authority is unable to discharge thefunctions and duties imposed on it by orunder the provisions of this act ; or

(b) that the Authority has persistently madedefault in complying with any directionissued by the Central Government underthis Act or in the discharge of thefunctions and duties imposed on it by orunder the provisions of this Act and as aresult of which default the financialposition of the Authority or theadministration of any aerodrome, civilenclave, aeronautical commu-nicationstation has deteriorated; or

(c) that circumstances exist which render itnecessary in the public interest so to do,the Central Government may, bynotification in the Official Gazette,supersede the Authority for such period,not exceeding six months, as may bespcified in the notification :

74


Provided that before issuing a notificationunder this sub-section for the reasons mentionedin clause (b) the Central Government shall givea reasonable opportunity to the Authority toshow cause why it should not be superseded andshall consider the explanations and objections,if any of the Authority.

(2) Upon the publication of a notificationunder sub-section (1) superseding the Authority-

(a) all the members shall, as from the dateof supersession vacate their offices assuch;

(b) all the powers, functions and duties whichmay, by or under the provisions of thisAct, be exercised or discharged by or onbehalf of the Authority, shall until theAuthority is re-constituted under sub-section (3), be exercised and dischargedby such person or persons as the CentralGovernment may direct;

(c) all property owned or controlled by theAuthority shall, until the Authority is re-constituted under sub-section (3), vestin the Central Government.

(3) On the expiration of the period ofsupersession specified in the notification issuedunder sub-section (1), the Central Governmentmay -

(a) extend the period of supersession forsuch further term, not exceeding sixmonths, as it may consider necessary; or

(b) re-constitute the Authority by freshappointment and in such case any personswho vacated their offices under clause(a) of sub-section (2) shall not be deemeddisqualified for appointment:

Provided that the Central Government may,at any time before the expiration of the periodof supersession, whether as originally specified

under sub-section (1) or as extended under thissub-section, take action under clause (b) of thissub-section.

(4) The Central Government shall cause anotification issued under sub-section (1) and afull report of any action taken under this sectionand the circumstances leading to such action tobe laid before both Houses of Parliament at theearliest opportunity.

36. Power of the Central Governmentto issue directions — (1) Without prejudiceto the foregoing provisions of this Act, theAuthority shall, in the discharge of its functionsand duties under this Act, be bound by suchdirections on questions of policy as the CentralGovernment may give in writing to it from timeto time :



(3) The Central Government may, from timeto time, issue directions to the Authorityregarding the discharge of any functions to itunder clause (e) of sub-section (3) of section12 and the Authority shall be bound to complywith such directions.

37. Power to make rules — (1) The CentralGovernment may, by notification in the OfficialGazette, make rules for carrying out the purposesof this Act.


(a) the conditions of service of the Chairmanand other members under section 5including the salaries payable to the

75


Chairman and to the members who arerequired to render whole- time serviceand the fees and allowances payable tothe members who are required to renderpart-time service;

(b) the period of notice required to terminatethe appointment of any member, who isrequired to render part-time service andwho is not a servant of the Government,under section 5 and the period of noticethat may be given to the CentralGovernment by a member before heresigns his office, under that section;

(c) the conditions and limitations subject towhich the Authority may appoint officersand other employees under sub-section(1) of section 10;

(d) the terms and conditions subject to whichthe non-recurring expenditure incurredby the Central Government for or inconnection with the purposes of anyaerodrome, civil enclave, aeronauticalcommunication station, the CivilAviation Training Centre and the Fireservice Training School shall be treatedas the capital provided by the CentralGovernment to the Authority underclause (e) of sub-section (1) of section13;

(e) the manner in which the Authority mayinvest its funds under section 22;

(f) the form in which the Authority shallprepare the annual statement of accountsincluding the profit and loss account andthe balance-sheet under section 24; and

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

38. Power to make regulations — (1) TheAuthority may make regulations not inconsistentwith this Act and the rules made thereunder to

provide for all matters for which provision isnecessary or expedient for the purpose of givingeffect to the provisions of this Act.

(2) Without prejudice to the generality ofthe foregoing power, such regulations mayprovide for -

(a) the time and places of the meetings ofthe Authority and the procedure to befollowed for the transaction of businessat such meetings under sub-section (1)of section 8;

(b) the conditions of service and theremuneration of officers and otheremployees appointed by the Authority;

(c) the allotment of residentialaccommodation to the officers and otheremployees appointed by the Authority;

(d) the contracts or class of contracts whichare to be sealed with the common seal ofthe Authority and the form and manner inwhich a contract may be made by theAuthority;

(e) the storage or processing of goods inany warehouse established by theAuthority under clause (g) of sub-section(3) of section 12 and the charging offees for such storage or processing;

(f) the custody and restoration of lostproperty and the terms and conditionsunder which lost property may be restoredto the persons entitles thereto;

(g) the disposal of any lost property in caseswhere such property is not restored;

(h) securing the safety of aircraft, vehiclesand persons using the aerodrome or civilenclave and preventing danger to thepublic arising from the use and operationof aircraft in the aerodrome or civilenclave;

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(i) preventing obstruction within theaerodrome or civil enclave for its normalfunctioning;

(j) prohibiting the parking or waiting of anyvehicle of carriage within the aerodromeor civil enclave expcept at placesspecified by the Authority;

(k) prohibiting or restriccting access to anypart of the aerodrome or civil enclave;

(l) preserving order within the aerodromeor civil enclave and preventing damageto property therein;

(m) regulating or restricting advertisingwithin the aerodrome or civil enclave;

(n) requiring any person, if so directed by anofficer appointed by the Authority inthis behalf, to leave the aerodrome orcivil enclave or any particcular part ofthe aerodrome or civil enclave; and

(o) generally for the efficient and propermanagement of the aerodrome or civilenclave.

(3) Any regulation made under any of theclauses (h) to (o) (inclusive) of sub-section (2)may provide that a contravention thereof shallbe punishable with fine which may extend tofive hundred rupees and in the case of acontinuing contravention with an additional finewhich may extend to twenty rupees for everyday during which such contravention continuesafter conviction for the first such contravention.

(4) No regulation made by the Authorityunder this section shall have effect until it hasbeen approved by the Central Government andpublished in the Official Gazette.

39. Supplementary provisions respectingregulations— Any regulation which may be

made by the Authority under this Act may bemade by the Central Government by notificationin the Official Gazette within one year of theconstitution of the Authority and any regulationso made may be altered or rescinded by theAuthority by means of a regulation made by itunder this Act.

40. Rules and regulations to be laid beforeParliament— Every rule and every regulationmade under this shall be laid, as soon as may beafter it is made, before each House ofParliament, while it is in session, for a totalperiod of thirty days which may be comprisedin one session or in two or more successivesessions, and if, before the expiry of the sesssionimmediately following the session or thesuccessive sessions aforesaid, both Housesagree in making any modification in the rule orregulation, as the case may be, should not bemade, the rule or regulattion shall thereafterhave effect only in such modified form or be ofno efect, as the case may be; so, however, thatany such modification or annulment shall bewithout prejudice to the validity of anythingpreviously done under that rule or regulation.

41. Power to remove diffculties — If anydifficulty arises in giving effect to the provisionsof this Act, The Central Government may, bygeneral or special order published in the OfficialGazette make such provisions not inconsistentwith the provisions of this Act as appear to it tobe necessary or expedient for the removal ofthe difficulty:


(2) Every order made under sub-section (1)shall be laid, as soon as may be after it is made,before each Houe of Parliament, while it is insession, for a total period of thirty days which

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may be comprised in one session or in two ormore succcessive sessions, and if, before theexpiry of the session immediately followingthe session or the successive sessions aforesaid,both Houses agree in making any modificationin the order or both Houses agree that the ordershould not be made, the order shall thereafterhave effect only in such modified form or be ofno effect, as the case be; so, however, that any

such modification or annulment shall be withoutprejudice to the validity of anything previouslydone under that order.

42. Amendment of Act 22 of 1934 — Insub-section (2) of section 5 of the Aircraft Act,1934, in clause (b), after the words and figures"the International Airports Authority Act, 1971",the words and figures "or the National AirportsAuthority Act, 1985" shall be inserted. 43 of1971

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CHAPTER VI

THE AIRPORTS AUTHORITY OF INDIA ACT, 1994

(55 OF 1994)

79

CHAPTER VI


TABLE OF CONTENTS

SECTIONS PAGES

CHAPTER I

PRELIMINARY

1. Short title, commencement and application. . . . . . . 82

2. Definitions . . . . . . . . . . . 82

CHAPTER II

THE AIRPORTS AUTHORITY OF INDIA

3. Constitution and incorporation of the Authority . . . . . . 83

4. Disqualification for office of member. . . . . . . . 84

5. Term of office and conditions of service of members. . . . . . 84

6. Vacation of office of member. . . . . . . . . 84

7. Eligibility of member for re-appointment . . . . . . . 85

8. Meetings . . . . . . . . . . . 85

9. Vacancies, etc., not to invalidate proceedings of the Authority . . . . 85

10. Appointment of officers and other employees of the Authority . . . . 85

11. Authority to act on business principles . . . . . . . 85

CHAPTER III


12. Functions of the Authority . . . . . . . . . 86

CHAPTER IV


13. Undertakings of the International Airports Authority and theNational Airports Authority to vest in the Authority . . . . . . 87

14. General effect of vesting of undertaking in the Authority . . . . . 87

15. Licences, etc., to be deemed to have been granted to the Authority. . . . 88

16. Tax exemption or benefit to continue to have effect. . . . . . 88

17. Guarantee to be operative . . . . . . . . . 88

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THE AIRPORTS AUTHORITY OF INDIA ACT, 1994 Chap. VI

18. Provisions in respect of officers and other employees of theInternational Airports Authority and the National Airports Authority. . . . 88

19. Compulsory acquisition of land for the Authority . . . . . . 90

20. Contracts by the Authority . . . . . . . . . 90

21. Mode of executing contracts on behalf of the Authority . . . . . 90

CHAPTER V


22. Power of the Authority to charge fees, rent, etc. . . . . . . 90

23. Additional capital and grant to the Authority by the Central Government . . . 91

24. Fund of the Authority and its investment . . . . . . . 91

25. Allocation of surplus funds . . . . . . . . . 91

26. Submission of programme of activities and financial estimates . . . . 92

27. Borrowing powers of the Authority . . . . . . . . 92

28. Accounts and audit . . . . . . . . . . 92

CHAPTER VI

MISCELLANEOUS

29. Submission of annual report. . . . . . . . . 93

30. Delegation . . . . . . . . . . . 93

31. Authentication of orders and other instruments of the Authority . . . . 93

32. Officers and employees of the Authority to be public servants . . . . 93

33. Protection of action taken in good faith . . . . . . . 93

34. Custody and disposal of lost property. . . . . . . . 93

35. Provisions relating to income-tax . . . . . . . . 93

36. Power of the Authority to undertake certain works. . . . . . 93

37. Power to issue directions . . . . . . . . . 94

38. Power of the Central Government to temporarily divest theAuthority of the management of any airport. . . . . . . 94

39. Power of the Central Government to supersede the Authority. . . . . 95

40. Power of the Central Government to issue directions. . . . . . 96

41. Power to make rules. . . . . . . . . . 96

42. Power to make regulations . . . . . . . . . 97

43. Rules and regulations to be laid before parliament. . . . . . 98

44. Power to remove difficulties. . . . . . . . . 98

45. Amendment of Act 22 of 1934. . . . . . . . . 99

46. Repeal and Saving . . . . . . . . . . 99

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An Act to provide for the constitution ofthe Airports Authority of India and for thetransfer and vesting of the undertakings of theInternational Airports Authority of India andthe National Airports Authority to and in theAirports Authority of India so constituted forthe better administration and cohesivemanagement of airports and civil enclaveswhereat air transport services are operated orare intended to be operated and of allaeronautical communication stations and formatters connected therewith or incidentalthereto.

Be it enacted by parliament in the Forty-fifth Year of the Republic of India as follows:-

CHAPTER I

PRELIMINARY

1. Short title, commencement andapplication—(1) This Act may be called theAirports Authority of India Act, 1994.

(2) It shall come into force on such dateas the Central Government may, by notificationin the official Gazette, appoint.

(3) It applies to—

(a) all airports whereat air transport servicesare operated or are intended to beoperated, other than airports and airfieldsbelonging to, or subject to the controlof, any armed force of the Union;

(b) all civil enclaves;

(c) all aeronautical communication stations;and

(d) all training stations, establishments andworkshops relating to air transportservices.

2. Definitions— In this Act, unless thecontext otherwise requires,—

(a) “aeronautical communication station”means a station in the aeronauticalcommunication service which includesaeronautical practising service,aeronautical fixed service, aeronauticalmobile service and aeronautical radiocommunication service;

(b) “airport” means a landing and taking offarea for aircrafts, usually with runwaysand aircraft maintenance and passengerfacilities and includes aerodrome asdefined in clause (2) of section 2 of theAircraft Act, 1934;

(c) “airstrip” means an area used or intendedto be used for the landing and take-off ofaircrafts with short take-off and landingcharacteristics and includes all buildingsand structures thereon or appertainingthereto;

(d) “air traffic service” includes fightinformation service, alerting service, airtraffic advisory service, air traffic controlservice, area control service, approachcontrol service and airport controlservice;

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(55 of 1994)

(September 12, 1994)

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Chap. VI THE AIRPORTS AUTHORITY OF INDIA ACT, 1994

(e) “air transport service” means any service,for any kind of remuneration, whatsoever,for the transport by air of persons, mailor any other thing, animate or inanimate,whether such service relates to a singleflight or series of flights;

(f) “appointed day” means such date as theCentral Government may, by notificationin the official Gazette, appoint for thepurposes of section 3;

(g) “Authority” means the Airports Authorityof India constituted under section 3;

(h) “Chairperson” means the chairperson ofthe Authority appointed under clause (a)of sub-section (3) of section 3;

(i) “civil enclave” means the area, if any,allotted at an airport belonging to anyarmed force of the union, for use bypersons availing of any air transportservices from such airport or for thehandling of baggage or cargo by suchservice, and includes land comprising ofany building and structure on such area;

(j) “heliport” means an area, either at groundlevel or elevated on a structure, used orintended to be used for the landing andtake-off of helicopters and includes anyarea for parking helicopters and allbuildings and structures thereon orappertaining thereto;

(k) “International Airports Authority” meansthe International Airports Authority ofIndia constituted under section 3 of theInternational Airports Authority Act,1971;

(l) “member” means a member of theAuthority and includes the chairperson,but does not include, for the purposes ofsections 4, 5, 6, and 7, an ex officio

member referred to in clause (b) of sub-section (3) of section 3;

(m) “National Airports Authority” means theNational Airports Authority constitutedunder section 3 of the National AirportsAuthority Act, 1985;

(n) “prescribed” means prescribed by rulesmade under this Act;

(o) “regulations” means regulations madeunder this Act.

CHAPTER II

THE AIRPORTS AUTHORITY OFINDIA

3. Constitution and incorporation of theAuthority —(1) With effect from the appointedday, the Central Government shall, bynotification in the official Gazette, constitutean authority to be called the Airports Authorityof India.

(2) The Authority shall be a body corporateby the name aforesaid having perpetualsuccession and a common seal, with power,subject to the provisions of this Act, to acquire,hold and dispose of property both movable andimmovable, and to contract and shall by the saidname sue and be sued.

(3) The Authority shall consist of —

(a) a chairperson to be appointed by thecentral government;

(b) the Director General of Civil aviation,or an officer not below the rand of theDeputy Director General of CivilAviation, to be appointed by the CentralGovernment, ex officio;

(c) not less than eight and not more thanfourteen members to be appointed bythe Central Government.

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(4) The Chairperson shall be a whole-timemember and other members referred to in clause(c) of sub-section (3) may be appointed aswhole-time or part-time members as the CentralGovernment may think fit.

(5) The Chairperson and the membersreferred to in clause (c) of subsection (3) shallbe chosen from among persons who have specialknowledge and experience in air transport orany other transport services industry,commercial or financial matters oradministration and from among persons whoare capable of representing organisations ofworkers and consumers.

4. Disqualification for office ofmember— A person shall be disqualified forbeing appointed as a member if he—


(b) is an undischarged insolvent; or

(c) is of unsound mind and stands so declaredby a competent court; or

(d) has been removed or dismissed from theservice of the Government or a bodycorporate owned or controlled by theGovernment; or

(e) has in the opinion of the centralGovernment such financial or otherinterest in the Authority as is likely toaffect prejudicially the discharge by himof his functions as a member.

5. Term of office and conditions ofservice of members— (1) Subject to theprovisions of section 6,—

(i) every whole-time member (other thanthe ex officio member) shall hold officefor a period of five years from the dateon which he assumes office or till he

attains the age of sixty years, whicheveris earlier , and

(ii) every part-time member (other than theex officio member) shall hold office fora period of three years from the date onwhich he assumes office:

Provided that the Central Governmentmay—

(a) terminate the appointment of anywhole-time member, who is not aservant of the Government, aftergiving him notice for a period ofnot less than three months or, inlieu thereof, on payment of anamount equal to his salary andallowances, if any, for a period ofthree months;

(b) terminate the appointment of anypart-time member who is not aservant of the Government aftergiving him notice for such period asmay be prescribed; and

(c) terminate at any time theappointment of any member who isa servant of the Government.


(3) Any member may resign his office bygiving notice in writing for such period asmay be prescribed, to the Central Governmentand, on such resignation being notified in theofficial Gazette by that Government, suchmember shall be deemed to have vacated hisoffice.

6. Vacation of office of member— TheCentral Government shall remove a memberif he —

(a) becomes subject to any of thedisqualifications mentioned in section4:

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Provided that no member shall be removedon the ground that he has become subject tothe disqualification mentioned in clause (e)of that section, unless he has been given areasonable opportunity of being heard in thematter; or


(c) is ,without obtaining leave of absencefrom the Authority, absent from threeconsecutive meetings of the Authority;or

(d) in the opinion of the CentralGovernment, has so abused his positionas to render his continuance in officedetrimental to the public interest:

Provided that no member shall be removedunder this clause unless he has been given areasonable opportunity of being heard in thematter.

7. Eligibility of member for re-appointment — Any person ceasing to be amember shall, unless disqualified under section4, be eligible for re-appointment.

8. Meetings— (1) The Authority shallmeet at such times and places, and shall observesuch rules of procedure in regard to thetransaction of the business at its meetings(including the quorum at such meetings) asmay be provided by regulations.

(2) The Chairperson, or, if for any reasonhe is unable to attend any meeting of theauthority, any other member chosen by themembers present at the meeting shall presideat the meeting.

(3) All questions which come up beforeany meeting of the Authority shall be decidedby a majority of the votes of the members

present and voting, and, in the event of anequality of votes, the Chairperson, or in hisabsence, the person presiding, shall have andexercise a second or casting vote.

9. Vacancies, etc., not to invalidateproceedings of the Authority— No act orproceeding of the Authority shall be invalidmerely by reason of—

(a) any vacancy in, or any defect in theconstitution of the Authority; or

(b) any defect in the appointment of a personacting as a member of the Authority; or

(c) any irregularity in the procedure of theAuthority not affecting the merits of thecase.

10.Appointment of officers and otheremployees of the Authority— (1) For thepurpose of enabling it efficiently to dischargeits functions under this Act, the Authorityshall, subject to the provisions of section 18and to such rules as may be made in thisbehalf, appoint (whether on deputation orotherwise) such number of officers and otheremployees as it may consider necessary:

Provided that the appointment of suchcategory of officers, as may be specified afterconsultation with the Chairperson in such rules,shall be subject to the approval of the CentralGovernment.

(2) Subject to the provisions of section 18,every officer or other employee appointed bythe Authority shall be subject to such conditionsof service and shall be entitled to suchremuneration as may be determined byregulations.

11.Authority to act on businessprinciples— In the discharge of its functionsunder this Act, the Authority shall act, so far asmay be, on business principles.

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CHAPTER III


12.Functions of the Authority— (1)Subject to the rules, if any, made by the CentralGovernment in this behalf, it shall be thefunction of the Authority to manage the airports,the civil enclaves and the aeronauticalcommunication stations efficiently.

(2) It shall be the duty of the Authority toprovide air traffic service and air transportservice at any airport and civil enclaves.

(3) Without prejudice to the generality ofthe provisions contained in sub-sections (1)and (2), the Authority may—

(a) plan, develop, construct and maintainrunways, taxiways, aprons and terminalsand ancillary buildings at the airportsand civil enclaves;

(b) plan, procure, install and maintainnavigational aids, communicationequipment, beacons and ground aids atthe airports and at such locations as maybe considered necessary for safenavigation and operation of aircrafts;

(c) provide air safety services and searchand rescue facilities in co-ordinationwith other agencies;

(d) establish schools or institutions orcentres for the training of its officersand employees in regard to any matterconnected with the purposes of this Act;

(e) construct residential buildings for itsemployees;

(f) establish and maintain hotels, restaurantsand restrooms at or near the airports;

(g) establish warehouses and cargocomplexes at the airports for the storageor processing of goods;

(h) arrange for postal, money exchange,insurance and telephone facilities forthe use of passengers and other personsat the airports and civil enclaves;

(i) make appropriate arrangements for watchand ward at the airports and civil enclaves;

(j) regulate and control the plying ofvehicles, and the entry and exit ofpassengers and visitors, in the airportsand civil enclaves with due regard to thesecurity and protocol functions of theGovernment of India;

(k) develop and provide consultancy,construction or management services,and undertake operations in India andabroad in relation to airports, air-navigation services, ground aids andsafety services or any facilities thereat;

(l) establish and manage heliports andairstrips;

(m) provide such transport facility as are, inthe opinion of the Authority, necessaryto the passengers travelling by air;

(n) form one or more companies under theCompanies Act, 1956 or under any otherlaw relating to companies to further theefficient discharge of the functionsimposed on it by this Act;

(o) take all such steps as may be necessaryor convenient for, or may be incidentalto, the exercise of any power or thedischarge of any function conferred orimposed on it by this Act;

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(p) perform any other function considerednecessary or desirable by the CentralGovernment for ensuring the safe andefficient operation of aircraft to, fromand across the air space of India;

(q) establish training institutes andworkshops;

(r) any other activity at the airports and thecivil enclaves in the best commercialinterests of the Authority including cargohandling, setting up of joint ventures forthe discharge of any function assignedto the Authority.


(5) Nothing contained in this section shallbe construed as—

(a) authorising the disregard by the Authorityof any law for the time being in force; or

(b) authorising any person to institute anyproceeding in respect of duty or liabilityto which the Authority or its officers orother employees would not otherwisebe subject.

CHAPTER IV


13.Undertakings of the InternationalAirports Authority and the NationalAirports Authority to vest in the Authority —(1) On and from the appointed day, there shallbe transferred to, and vest in, the Authorityconstituted under section 3, the undertakingsof the International Airports Authority and theNational Airports Authority.

(2) The undertaking of the InternationalAirports Authority or the National Airports

Authority which is transferred to and whichvests in, the Authority under sub-section (1)shall be deemed to include all assets, rights,powers, authorities and privileges and allproperty movable and immovable, real orpersonal, corporeal or incoporeal, present orcontingent, of whatever nature and wheresoeversituate, including lands, buildings, machinery,equipments, works, workshops, cash balances,capital reserves, reserve funds, investments,tenancies, leases and book debts and all otherrights and interests arising out of such propertyas were immediately before the appointed dayin the ownership, possession or power of theInternational Airports Authority, or as the casemay be, the National Airports Authority, inrelation to its undertaking, whether within oroutside India, all books of account anddocuments relating thereto and shall also bedeemed to include all borrowings, liabilitiesand obligations of whatever kind then subsistingof the International Airports Authority, or asthe case may be, the National Airports Authorityin relation to its undertaking.

14.General effect of vesting ofundertaking in the Authority —(1) Allcontracts, agreements and workingarrangements subsisting immediately beforethe appointed day and affecting the InternationalAirports Authority, or as the case may be, theNational Airports Authority shall, in so far asthey relate to the International AirportsAuthority, or as the case may be, the NationalAirports Authority, cease to have effect or beenforceable against the International AirportsAuthority, or as the case may be, the NationalAirports Authority and shall be of as full forceand effect against or in favour of the Authorityin which the undertakings have vested by virtueof this Act and enforceable as fully andeffectually as if, instead of the InternationalAirports Authority, or as the case may be, the

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National Airports Authority, the Authority hadbeen named therein or had been a party thereto.

(2) Any proceeding, suit or cause of actionpending or existing immediately before theappointed day by or against the InternationalAirports Authority or the National AirportsAuthority in relation to its undertakings may, asfrom that day, be continued and enforced by oragainst the Authority in which it has vested byvirtue of this Act, as might have been enforcedby or against the International Airports Authorityor the National Airports Authority if this Acthad not been passed, and shall cease to beenforceable by or against the InternationalAirports Authority, or as the case may be, theNational Airports Authority.

15.Licences, etc., to be deemed to havebeen granted to the Authority— With effectfrom the appointed day, all licences, permits,quotas and exemptions, granted to theInternational Airports Authority or the NationalAirports Authority in connection with the affairsand business of the International AirportsAuthority, or as the case may be, the NationalAirports Authority, under any law for the timebeing in force, shall be deemed to have beengranted to the Authority in which theundertakings of the International AirportsAuthority and the National Airports Authorityhave vested by virtue of this Act.

16.Tax exemption or benefit to continueto have effect—(1) Where any exemption from,or any assessment with respect to, any tax hasbeen granted or made or any benefit by way ofset off or carry forward, as the case may be, ofany unabsorbed depreciation or investmentallowance or other allowance or loss has beenextended or is available to the InternationalAirports Authority or the National AirportsAuthority, under the Income-tax Act, 1961,such exemption, assessment or benefit shallcontinue to have effect in relation to theAuthority in which the undertakings of the

International Airports Authority and the NationalAirports Authority have vested by virtue of thisAct.

(2) Where any payment made by theInternational Airports Authority or the NationalAirports Authority is exempt from deductionof the tax at source under any provision of theIncome-tax Act, 1961, the exemption from taxwill continue to be available as if the provisionsof the said Act made applicable to theInternational Airports Authority or the NationalAirports Authority were operative in relation tothe Authority in which the undertakings of theInternational Airports Authority and the NationalAirports Authority have vested by virtue of thisAct.

(3) The transfer and vesting of theundertakings or any part thereof in terms ofsection 13 shall not be construed as a transferwithin the meaning of the Income-tax Act, 1961for the purposes of capital gains.

17.Guarantee to be operative— Anyguarantee given for or in favour of theInternational Airports Authority or the NationalAirports Authority with respect to any loan orlease finance shall continue to be operative inrelation to the Authority in which theundertakings of the International AirportsAuthority and the National Airports Authorityhave vested by virtue of this Act.

18.Provisions in respect of officers andother employees of the InternationalAirports Authority and the National AirportsAuthority — (1) (a) Every officer or otheremployee of the International Airports Authorityserving in its employment immediately beforethe appointed day shall, in so far as such officeror other employee is employed in connectionwith the undertaking which has vested in theAuthority by virtue of this Act, becomes, asfrom the appointed day, an officer or, as the casemay be, other employee of the InternationalAirports Division of the Authority.

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(b) Every officer or other employee of theNational Airports Authority serving in itsemployment immediately before the appointedday shall, in so far as such officer or otheremployee is employed in connection with theundertaking which has vested in the Authorityby virtue of this Act, becomes, as from theappointed day, an officer or, as the case may be,other employee of the National AirportsDivision of the Authority.

(2) Every officer or other employee of theInternational Airports Authority or the NationalAirports Authority who becomes an officer or,as the case may be, other employee of theAuthority, as referred to in sub-section (1),shall hold his office or service therein by thesame tenure, at the same remuneration, uponthe same terms and conditions, with the sameobligations and with the same rights andprivileges as to leave, passage, insurance,superannuation scheme, provident fund, otherfunds, retirement, pension, gratuity and otherbenefits as he would have held under theInternational Airports Authority or, as the casemay be, the National Airports Authority if itsundertaking had not vested in the Authority andshall continue to do so as an officer or otheremployee, as the case may be, of the Authorityor until the expiry of a period of one year fromthe appointed day if such officer or otheremployee opts not to be the officer or otheremployee of the Authority within such period:

Provided that if the Authority thinks itexpedient to extend the period so fixed, it mayextend the same up to maximum period of oneyear.

(3) Where an officer or other employee ofthe International Airports Authority or theNational Airports Authority opts under sub-section (2) not to be in the employment orservice of the Authority in which theundertakings of the International Airports

Authority and the National Airports Authorityhave vested, such officer or other employeeshall be deemed to have resigned from therespective cadre.

(4) Notwithstanding anything contained inthe Industrial Disputes Act, 1947 or in anyother law for the time being in force, the transferof the services of any officer or other employeeof the International Airports Authority or theNational Airports Authority to the Authorityshall not entitle such officer or other employeeto any compensation under this Act or underany other law for the time being in force and nosuch claim shall be entertained by any court,tribunal or other authority.

(5) The officers and other employees whohave retired before the appointed day from theservice of the International Airports Authorityor the National Airports Authority and areentitled to any benefits, rights or privilegesshall be entitled to receive the same benefits,rights or privileges from the Authority in whichthe undertaking of the International AirportsAuthority and the National Airports Authorityhave vested.

(6) The trusts of the Provident Fund andGroup Insurance and Superannuation Schemeof the International Airports Authority or theNational Airports Authority and any other bodiescreated for the welfare of officers or employeeswould continue to discharge their functions inthe Authority as was being done hitherto in theInternational Airports Authority or the NationalAirports Authority and tax exemption grantedto provident Fund or Group Insurance andSuperannuation Scheme would continue to beapplied to the Authority.

(7) After the expiry of the period of oneyear, or the extended period, as referred to insub-section (2), all the officers and otheremployees transferred and appointed to the

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Authority, other than those opting not to be theofficers or employees of the Authority withinsuch period, shall be governed by the rules andregulations made by the Authority in respect ofthe service conditions of the officers and otheremployees of the said Authority.

19.Compulsory acquisition of land forthe Authority — Any land required by theAuthority for the discharge of its functionsunder this Act shall be deemed to be needed fora public purpose and such land may be acquiredfor the Authority under the provisions of theLand Acquisition Act, 1894 or of any othercorresponding law for the time being in force.

20.Contracts by the Authority— Subjectto the provisions of section 21, the Authorityshall be competent to enter into and performany contract necessary for the discharge of itsfunctions under this Act.

21.Mode of executing contracts on behalfof the Authority — (1) Every contract shall, onbehalf of the Authority, be made by thechairperson or such other member or suchofficer of the Authority as may be generally orspecially empowered in this behalf by theAuthority and such contracts or class ofcontracts as may be specified in the regulationsshall be sealed with the common seal of theAuthority:

Provided that no contract exceeding suchvalue or amount as the Central Governmentmay, from time to time, by order, fix in thisbehalf shall be made unless it has beenpreviously approved by the Authority:

Provided further that no contract for theacquisition or sale of immovable property orfor the lease of any such property for a termexceeding thirty years and no other contractexceeding such value or amount as the CentralGovernment may, from time to time, by order,fix in this behalf shall be made unless it has

been previously approved by the CentralGovernment.

(2) Subject to the provisions of sub-section(1), the form and manner in which any contractshall be made under this Act shall be such asmay be specified by regulations.


CHAPTER V


22. Power of Authority to charge fees,rent, etc.— The Authority may —

(i) With the previous approval of the CentralGovernment charge fees or rent—

(a) for the landing, housing or parkingof aircraft or for any other serviceor facility offered in connectionwith aircraft operations at anyairport, heliport or airstrip;

Explanation — In this sub-clause“aircraft” does not include anaircraft belonging to any armedforce of the Union and “aircraftoperations” does not includeoperations of any aircraft belongingto the said force;

(b) for providing air traffic services,ground safety services, aeronauticalcommunications and navigationalaids and meteorological services atany airports and at any aero-nauticalcommunication station;

(c) for the amenities given to thepassengers and visitors at anyairport, civil enclave, heliport orairstrip;

(d) for the use and employment bypersons of facilities and other

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services provided by the Authorityat any airport, civil enclave, heliportor airstrip;

(ii) with due regard to the instructions thatthe Central Government may give to theAuthority, from time to time, chargefees or rent from persons who are givenby the Authority any facility for carryingon any trade or business at any airport,heliport or airstrip.

23.Additional capital and grant to theAuthority by the Central Government— TheCentral Government may, after dueappropriation made by parliament by law in thisbehalf,—

(a) provide any capital that may be requiredby the Authority for the discharge of itsfunctions under this Act or for anypurpose connected therewith on suchterms and conditions as that Governmentmay determine;

(b) pay to the Authority, on such terms andconditions as the Central Governmentmay determine, by way of loans or grantssuch sums of money as that Governmentmay consider necessary for the efficientdischarge by the Authority of itsfunctions under this Act.

24.Fund of the Authority and itsinvestment— (1) The Authority shall haveits own fund and all receipts of the Authorityshall be credited thereto and all payments ofthe Authority shall be made therefrom.

(2) The authority shall have power, subjectto the provisions of this Act, to spend suchsums as it thinks fit to cover all administrativeexpenses of the Authority and on objects or forpurposes authorised by this Act and such sumsshall be treated as expenditure out of the fundof the Authority.

(3) All moneys standing at the credit of theAuthority which cannot immediately be appliedas provided in sub-section (2), shall be —

(a) deposited in the State Bank of India orany such Scheduled bank or banks orother public financial institutions subjectto such conditions as may, from time totime, be specified by the CentralGovernment; and

(b) invested in the securities of the CentralGovernment or in such manner as maybe prescribed.

Explanation— In this sub-section,“Scheduled bank” has the same meaningas in clause (e) of section 2 of the ReserveBank of India Act, 1934.

25.Allocation of surplus funds—(1) TheAuthority may, from time to time, set apartsuch amounts as it thinks fit as a reserve fund orfunds for the purpose of expanding existingfacilities or services or creating new facilitiesor services at any airport, civil enclave, heliportor airstrip or for the purpose of providing againstany temporary decrease of revenue or increaseof expenditure from transient causes or forpurposes of replacement, or for meetingexpenditure arising form loss or damage fromfire, cyclone, air-crash or other accident or formeeting any liability arising out of any act orcommission in the discharge of its functionsunder this Act :

Provided that without prejudice to the rightof the Authority to establish specific reservesfor one or more specific purposes, the Authorityshall also have the power to establish a generalreserve:

Provided further that the sums set apartannually in respect of each or any of the specificand general reserves and the aggregate at any

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time of such sums shall not exceed such limitsas may, from time to time, be fixed in thatbehalf by the Central Government.

(2) After making provision for such reservefund or funds and for bad and doubtful debts,depreciation in assets and all other matterswhich are usually provided for by companiesregistered and incorporated under theCompanies Act, 1956, the Authority shall paythe balance of its annual net profits to theCentral Government.

26.Submission of programme ofactivities and financial estimates— (1) TheAuthority shall, before the commencement ofeach financial year, prepare a statement of theprogramme of its activities during theforthcoming financial year as well as financialestimate in respect thereof.

(2) The statement prepared under sub-section(1) shall, not less than three months before thecommencement of each financial year, besubmitted for approval to the CentralGovernment.

(3) The statement and the financial estimatesof the Authority may, with the approval of theCentral Government, be revised by the Authority.

27.Borrowing powers of the Authority—(1) The Authority may, with the consent of theCentral Government or in accordance with theterms of any general or special authority givento it by the Central Government, borrow moneyform any source by the issue of bonds,debentures or such other instruments as it maydeem fit for discharging all or any of itsfunctions under this Act.

(2) The Central Government may guaranteein such manner as it thinks fit, the repayment ofthe principal and the payment of interest thereonwith respect to the loans borrowed by theAuthority under sub-section (1).

(3) Subject to such limits as the CentralGovernment may, from time to time, lay down,the Authority may borrow temporarily by wayof overdraft or otherwise such amounts as itmay require for discharging its functions underthis Act.

28.Accounts and audit— (1) The Authorityshall maintain proper accounts and other relevantrecords and prepare an annual statement ofaccounts including the profit and loss accountand the balance-sheet in such form as may beprescribed by the Central Government inconsultation with the Comptroller and Auditor-General of India.

(2) The accounts of the Authority shall beaudited annually by the Comptroller and Auditor-General of India and any expenditure incurredby him in connection with such audit shall bepayable by the Authority to the Comptroller andAuditor-General of India.

(3) The Comptroller and Auditor-Generalof India and any person appointed by him inconnection with the audit of the accounts of theAuthority shall have the same rights andprivileges and authority in connection with suchaudit as the comptroller and Auditor-Generalhas in connection with the audit of Governmentaccounts and, in particular, shall have the rightto demand the production of books, accounts,connected vouchers, documents and papers andinspect any of the offices of the Authority.

(4) The accounts of the Authority as certifiedby the Comptroller and Auditor-General ofIndia or any other person appointed by him inthis behalf together with the audit report thereonshall be forwarded annually to the CentralGovernment and that Government shall causethe same to be laid before both Houses ofParliament.

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CHAPTER VI

MISCELLANEOUS

29.Submission of annual report— (1) TheAuthority shall, as soon as may be after the endof each financial year, prepare and submit to theCentral Government in such form as may beprescribed a report giving an account of itsactivities during that financial year and the reportshall also give an account of the activities whichare likely to be undertaken by the Authorityduring the next financial year.


30.Delegation— The Authority may, bygeneral or special order in writing, delegate tothe Chairperson or any other member or to anyofficer of the Authority, subject to suchconditions and limitations, if any, as may bespecified in the order, such of its powers andfunctions under this Act, (except the powersunder section 42) as it may deem necessary.

31.Authentication of orders and otherinstruments of the Authority— All ordersand decisions of the Authority shall beauthenticated by the signature of the Chairpersonor any other member authorised by the Authorityin this behalf and all other instruments executedby the Authority shall be authenticated by thesignature of an officer of the Authorityauthorised by it in this behalf.

32.Officers and employees of theAuthority to be public servants—All officersand employees of the Authority shall, whileacting or purporting to act in pursuance of theprovisions of this Act or of any rule or regulationmade thereunder, be deemed to be public servants

within the meaning of section 21 of the IndianPenal Code.

33.Protection of action taken in goodfaith—No suit, prosecution or other legalproceeding shall lie against the Authority orany member or any officer or other employeeof the Authority for anything which is in goodfaith done or intended to be done in pursuanceof this Act or of any rule or regulation madethereunder or for any damage sustained byany aircraft or vehicle in consequence of anydefect in any of the airports, civil enclaves,heliports, airstrips, aeronauticalcommunication stations or other thingsbelonging to or under the control of theAuthority.

34.Custody and disposal of lostproperty—Subject to such regulations as theAuthority may make in this behalf, theAuthority shall provide for securing the safecustody and restoration of any property which,while not in proper custody, is found on anypremises belonging to the Authority or underits overall control or in any aircraft on anysuch premises.

35. Provisions relating to income-tax—For the purposes of the Income-tax Act, 1961or any other enactment for the time being inforce relating to income-tax or any other taxon income, profits or gains, the Authorityshall be deemed to be a company within themeaning of the Income-tax Act, 1961 and shallbe liable to tax accordingly on its income,profits and gains.

36.Power of the Authority to undertakecertain works — The Authority may undertaketo carry out on behalf of any person any worksor services or any class of works or services

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on such terms and conditions as may be agreedupon between the Authority and the personconcerned.

37.Power to issue directions— (1) TheAuthority or any officer specially authorisedby it in this behalf may, from time to time, byorder, issue directions, consistent with theprovisions of the Aircraft Act, 1934, and therules made thereunder, with respect to any ofthe matters specified in clauses (f), (h), (i),(j), (k), (m), (p), (qq) and (r) of sub-section(2) of section 5 of that Act, to any person orpersons engaged in aircraft operations or usingany airport, heliport, airstrip or civil enclave,in any case where the Authority or the officeris satisfied that in the interests of the securityof India or for securing the security of theaircraft it is necessary to do so.

(2) Every direction issued under sub-section(1) shall be complied with by the person orpersons to whom such direction is issued.

(3) If any person wilfully fails to complywith any direction issued under this section,he shall be punishable with imprisonment fora term which may extend to six months orwith fine which may extend to five thousandrupees, or with both.

38.Power of the Central Governmentto temporarily divest the Authority of themanagement of any airport— (1) If, at anytime, the Central Government is of opinionthat in the public interest it is necessary orexpedient so to do, it may, by order, directthe Authority to entrust the administration,management or similar other functions of anyairport, heliport, airstrip, civil enclave,aeronautical communication station, or anyother agency or department of any airport,heliport, airstrip, civil enclave or aeronauticalcommunication station with effect from such

date and to such person as may be specified inthe order and the Authority shall be bound tocomply with such direction :


(2) Where the management of any airport,heliport, airstrip, civil enclave or aeronauticalcommunication station or any other agencyor department thereof is entrusted to any personspecified under sub-section (1) (hereafterreferred to in this section as the authorisedperson), the Authority shall cease to exerciseand discharge all its powers and functionsunder this Act in relation to such airport,heliport, airstrip, civil enclave or aeronauticalcommunication station or any other agencyor department thereof and such powers andfunctions shall be exercised and dischargedby the authorised person in accordance withthe instructions, if any, which the centralGovernment may give to the authorised personfrom time to time:

Provided that no such power or functionas may be specified by the Central Governmentby a general or special order shall be exercisedor discharged by the authorised person exceptwith the previous sanction of the CentralGovernment.

(3) An order made under sub-section (1)shall, unless rescinded, be in operation for aperiod of six months from the date on whichthe management of the airport, heliport, airstrip,civil enclave or aeronautical communicationstation or any other agency or departmentthereof is entrusted to the authorised person:

Provided that the Central Government mayextend such period for a further period orperiods not exceeding eighteen months.

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(4) During the operation of an order madeunder sub-section (1), it shall be competentfor the Central Government to issue, fromtime to time, such directions to the Authorityas are necessary to enable the authorised personto exercise the powers and discharge thefunctions of the Authority under this Act inrelation to the airport, heliport, airstrip, civilenclave or aeronautical communication station,or any other agency or department thereof themanagement of which has been entrusted tohim and in particular to transfer any sum ofmoney from the fund of the Authority to theauthorised person for the management of theairport, heliport, airstrip, civil enclave oraeronautical communication station or any otheragency or department thereof and every suchdirection shall be complied with by theAuthority.

(5) On the cesser of operation of any ordermade under sub-section (1) in relation to anyairport, heliport, airstrip, civil enclave oraeronautical communication station, or anyother agency or department thereof theauthorised person shall cease to exercise andperform the powers and functions of theAuthority under this Act in relation to suchairport, heliport, airstrip, civil enclave oraeronautical communication station or anyother agency or department thereof and theAuthority shall continue to exercise andperform such powers and functions inaccordance with the provisions of this Act.

(6) On the cesser of operation of any ordermade under sub-section (1) in relation to anyairport, heliport, airstrip, civil enclave oraeronautical communication station, or anyother agency or department thereof theauthorised person shall hand over to the Authorityany property (including any sum of money orother asset) remaining with him in connectionwith the management of such airport, heliport,airstrip, civil enclave or aeronauticalcommunication station.

(7) Anything done or any action takenlawfully by the authorised person in relation toany airport, heliport, airstrip, civil enclave oraeronautical communication station or any otheragency or department thereof during the periodof operation of an order made under sub-section(1) shall be deemed to have been done or takenby the Authority and shall be binding on theAuthority.

39.Power of the Central Government tosupersede the Authority—(1) If, at any time,the Central Government is of opinion—

(a) that on account of a grave emergency,the Authority is unable to discharge thefunctions and duties imposed on it by orunder the provisions of this Act; or

(b) that the Authority has persistently madedefault in complying with any directionissued by the Central Government underthis Act or in the discharge of thefunctions and duties imposed on it by orunder the provisions of this Act and as aresult of which default the financialposition of the Authority or theadministration of any airport, heliport,airstrip, civil enclave or aeronauticalcommunica-tion station hasdeteriorated; or

(c) that circumstances exist which render itnecessary in the public interest so to do,

the Central Government may, by notificationin the Official Gazette, supersede the Authorityfor such period, not exceeding six months, asmay be specified in the notification:

Provided that before issuing a notificationunder this sub-section for the reasons men-tioned in clause (b), the Central Governmentshall give a reasonable opportunity to theAuthority to show cause why it should not besuperseded and shall consider the explana-tionsand objections, if any, of the Authority.

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(2) Upon the publication of a notificationunder sub-section (1) superseding theAuthority,—

(a) all the members shall, as from the dateof supersession, vacate their offices assuch;

(b) all the powers, functions and duties whichmay, by or under the provisions of thisAct, be exercised or discharged by or onbehalf of the Authority, shall until theAuthority is re-constituted under sub-section (3), be exercised and dischargedby such person or persons as the CentralGovernment may direct;

(c) all property owned or controlled by theAuthority shall, until the Authority is re-constituted under sub-section (3), vestin the Central Government.

(3) On the expiration of period ofsupersession specified in the notification issuedunder sub-section (1), the Central Governmentmay,

(a) extend the period of supersession forsuch further term not exceeding sixmonths, as it may consider necessary; or

(b) re-constitute the Authority by freshappointment and in such case the memberswho vacated their offices under clause(a) of sub-section (2) shall not be deemeddisqualified for appointment:

Provided that the Central Government may,at any time before the expiration of the periodof supersession, whether as originally specifiedunder sub-section (1) or as extended under thissub-section, take action under clause (b) of thissub-section.

(4) The Central Government shall cause anotification issued under sub-section (1) and afull report of any action taken under this sectionand the circumstances leading to such action tobe laid before both Houses of parliament at the

earliest opportunity.

40.Power of the Central Government toissue directions— (1) Without prejudice tothe foregoing provisions of this Act, theAuthority shall, in the discharge of its functionsand duties under this Act, be bound by suchdirections on questions of policy as the CentralGovernment may give in writing to it from timeto time:



(3) The central Government may, from timeto time, issue directions to the Authorityregarding the discharge of any functions to itunder clause (e) of sub-section (3) of section12 and the Authority shall be bound to complywith such directions.

41.Power to make rules— (1) The CentralGovernment may, by notification in the officialGazette, make rules for carrying out theprovisions of this Act.


(a) the period of notice as may be given bythe Central Government to terminatethe appoint-ment of any part-timemember of the Authority under clause(b) of proviso to sub-section (1) ofsection 5;

(b) the conditions of service of the membersof the Authority under sub-section (2)of section 5;

(c) the period of notice as may be given byany member to resign his office undersub-section (3) of section 5;

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(d) the provisions subject to which officersand other employees may be appointedby the Authority and the category ofofficers to be appointed after approvalof the Central Government under theproviso to sub-section (1) of section10;

(e) the provisions subject to which theAuthority may manage the airports, civilenclaves and aeronauticalcommunication stations under sub-section (1) of section 12;

(f) the manner in which the Authority mayinvest its funds under clause (b) of sub-section (3) of section 24;

(g) the form in which the annual statementof accounts shall be prepared by theAuthority under sub-section (1) ofsection 28:

(h) the form in which a report giving anaccount of its activities shall be preparedand submitted by the Authority to theCentral Government under sub-section(1) of section 29; and

(i) any other matter which is to be, or maybe, prescribed.

42.Power to make regulations— (1) TheAuthority may make regulations not inconsistentwith this Act and the rules made thereunder toprovide for all matters for which provision isnecessary or expedient for the purpose of givingeffect to the provisions of this Act.

(2) Without prejudice to the generality ofthe foregoing power, such regulations mayprovide for—

(a) the time and places of the meetings ofthe Authority and the procedure to befollowed for the transaction of businessincluding the quorum at such meetingsunder sub-section (1) of section 8;

(b) the conditions of service and theremuneration of officers and otheremployees to be appointed by theAuthority under sub-section (2) ofsection 10;

(c) the construction of residentialaccommodation for the officers andother employees appointed by theAuthority under clause (e) of sub-section(3) of section 12;

(d) the storage or processing of goods inany warehouse established by theAuthority under clause (g) of sub-section(3) of section 12 and the charging offees for such storage or processing;

(e) the contracts or class of contracts whichare to be sealed with the common seal ofthe Authority and the form and manner inwhich a contract may be made by theAuthority under sub-section (1) ofsection 21;

(f) the custody and restoration of lostproperty and the terms and conditionsunder which lost property may be restoredto the persons entitled thereto undersection 34;

(g) the disposal of any lost property in caseswhere such property is not restored;

(h) securing the safety of aircraft, vehiclesand persons using the airport or civilenclave and preventing danger to thepublic arising from the use and operationof aircraft in the airport or civil enclave;

(i) preventing obstruction within the airportor civil enclave for its normalfunctioning;

(j) prohibiting the parking or waiting of anyvehicle of carriage within the airport orcivil enclave except at places specifiedby the Authority;

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(k) prohibiting or restricting access to anypart of the airport or civil enclave;

(l) preserving order within the airport orcivil enclave and preventing damage toproperty therein;

(m) regulating or restricting advertisingwithin the airport or civil enclave;

(n) requiring any person, if so directed by anofficer appointed by the Authority inthis behalf, to leave the airport or civilenclave or any particular part of theairport or civil enclave; and

(o) generally for the efficient and propermanagement of the airport or civilenclave.

(3) Any regulation made under any of theclauses (h) to (o) (both inclusive) of sub-section(2) may provide that a contravention thereofshall be punishable with fine which may extendto five hundred rupees and in the case of acontinuing contravention with an additional finewhich may extend to twenty rupees for everyday during which such contravention continuesafter conviction for the first such contravention.

(4) No regulation made by the Authorityunder this section shall have effect until it hasbeen approved by the Central Government andpublished in the Official Gazette.

(5) Notwithstanding anything contained inthis section, the first regulations under this Actshall be made by the Central Government andshall have effect on being published in theofficial Gazette.

(6) The first regulations framed under sub-section (5) shall remain in force until such timethe Authority has made regulations and they arepublished in the Official Gazette.

43.Rules and regulations to be laid beforeparliament.— Every rule and every regulationmade under this Act shall be laid, as soon as maybe after it made, before each House ofParliament, while it is in session, for a totalperiod of thirty days which may be comprisedin one session or in two or more successivesessions, and if, before the expiry of the sessionimmediately following the session or thesuccessive sessions aforesaid, both Housesagree in making any modification in the rule orregulation, as the case may be, or both Housesagree that the rule or regulation, as the case maybe, should not be made, the rule or regulationshall thereafter have effect only in such modifiedform or be of no effect, as the case may be; so,however, that any such modification orannulment shall be without prejudice to thevalidity of anything previously done under thatrule or regulation.

44. Power to remove difficulties.— (1)If any difficulty arises in giving effect to theprovisions of this Act, the Central Governmentmay, by general or special order published inthe Official Gazette, make such provisions notinconsistent with the provisions of this Act asappear to it to be necessary or expedient for theremoval of the difficulty:


(2) Every order made under sub-section (1)shall be laid, as soon as may be after it is made,before each House of Parliament, while it is insession, for a total period of thirty days whichmay be comprised in one session or in two ormore successive sessions, and if, before theexpiry of the session immediately followingthe session or the successive sessions aforesaid,both Houses agree in making any modification

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in the order or both Houses agree that the ordershould not be made, the order shall thereafterhave effect only in such modified form or be ofno effect, as the case may be; so, however, thatany such modification or annulment shall bewithout prejudice to the validity of anythingpreviously done under that order.

45.Amendment of Act 22 of 1934.— Insection 5 of the Aircraft Act, 1934, in sub-section (2),—

(a) in clause (b), for the words and figures“the International Airports Authority Act,1971 or the National Airports authorityAct, 1985” the words and figures “ theAirports Authority of India Act, 1994”shall be substituted;

(b) proviso to clause (b) shall be omitted.

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46.Repeal and saving — (1) On and fromthe appointed date,—

(i) the International Airports Act, 1971 andthe National Airports Authority Act,1985 shall stand repealed;

(ii) the International Airports Authority andthe National Airports Authorityconstituted under the aforesaid Acts shallcease to exist.

(2)Notwithstanding such repeal anythingdone or any action taken or purported to havebeen done or taken under the aforesaid Actsso repealed shall, in so far as it is notinconsistent with the provisions of this Act,be deemed to have been done or taken underthe corresponding provisions of this Act.

CHAPTER VII

THE CARRIAGE BY AIR ACT, 1972

(69 of 1972)

100

CHAPTER VII


TABLE OF CONTENTS

RULES PAGES

1. Short title, extent and commencement. . . . . . . 102

2. Definitions . . . . . . . . . . 102

3. Application of Convention of India . . . . . . . 102

4. Application of amended Convention to India. . . . . . 103

5. Liability in case of death . . . . . . . . 103

6. Conversion of francs . . . . . . . . . 103

7. Provisions regarding suits against High Contracting Partieswho undertake carriage by air . . . . . . . 104

8. Application of Act to carriage by air which is not international . . . 104

9. Repeal . . . . . . . . . . 104

SCHEDULES

The First Schedule . . . . . . . . . . 104

The Second Schedule . . . . . . . . . . 111

101

THE CARRIAGE BY AIR ACT, 1972 CHAP. VII

An Act to give effect to the Convention forthe unification of certain rules relating tointernational carriage by air signed at Warsawon the 12th day of October, 1929 and to the saidConvention as amended by the Hague Protocolon the 28th day of September, 1955 and tomake provision for applying the rules containedin the said Convention in its original form andin the amended form (subject to exceptions,adaptations and modification) to non-international carriage by air and for mattersconnected therewith.

Be it enacted by Parliament in the Twenty-third Year of the Republic of India as follows:—

1. Short title, extent and commencement— (1) This Act may be called the Carriage byAir Act, 1972.

(2) It extends to the whole of India.


2. Definitions — In this Act, unless thecontext otherwise requires, —

(1) “amended Convention” means theConvention as amended by the HagueProtocol on the 28th day of September1955;

(2) “Convention” means the Convention forthe unification of certain rules relatingto international carriage by air signed atWarsaw on the 12th day of October,1929.

3. Application of Convention of India—(1) The rules contained in the First Schedule,being the provisions of the Convention relatingto the rights and liabilities of carriers,passengers, consignors, consignees and otherpersons, shall, subject to the provisions of thisAct, have the force of law in India in relation toany carriage by air to which those rules apply,irrespective of the nationality of the aircraftperforming the carriage.

(2) The Central Government may, bynotification in the Official Gazette, certify whoare the High Contracting Parties to theConvention, in respect of what territories theyare parties and to what extent they have availedthemselves of the provisions of rule 36 in theFirst Schedule and any such notification shallbe conclusive evidence of the matters certifiedtherein.

(3) Any reference in the First Schedule tothe territory of any High contracting Party tothe Convention shall construed as a referenceto all the territories in respect of which he is aparty.

(4) Any reference in the First Schedule toagents of the carrier shall be construed asincluding a reference to servants of the carrier.

(5) Every notification issued under sub-section (2) of section 2 of the Indian Carriageby Air Act, 1934 (20 of 1934) and in forceimmediately before the commencement ofthis Act shall be deemed to have been issuedunder sub-section (2) of this section and shallcontinue to be in force until such notificationis superseded.

CHAPTER VII


(69 of 1972)

102


4. Application of amended Conventionto India — (1) The rules contained in theSecond Scheduled, being the provisions of theamended Convention relating to the rights andliabilities of carriers , passengers, consignors,consignees and other persons shall, subject tothe provisions of this Act, have the force of lawin India in relation to any carriage by air towhich those rules apply, irrespective of thenationality of the aircraft performing thecarriage.

(2) The Central Government may, bynotification in the Official Gazette, certify whoare the High Contracting Parties to the amendedConvention and in respect of what territoriesthey are parties, and any such notification shallbe conclusive evidence of the matters certifiedtherein.

(3) Any reference in the Second Scheduleto the territory of any High Contracting party tothe amended Convention shall be construed asa reference to all the territories in respect ofwhich he is party.

(4) Any reference in the Second Scheduleto agents of the carrier shall be construed asincluding a reference to servants of the carrier.

5. Liability in case of death — (1)Notwithstanding any thing contained in the FatalAccidents Act, 1855 (13 of 1855) or any otherenactment or rule of law, in force in any part ofIndia, the rules contained in the First Scheduleand in the Second Schedule shall, in all cases towhich those rules apply, determine the liabilityof a carrier in respect of the death of a passenger.

(2) The liability shall be enforceable for thebenefit of such of the members of thepassenger’s family as sustained damage byreason of his death.

Explanation. — In this sub-section, theexpression “ member of a family” means

wife or husband, parent, step-parent,grand-parent, brother, sister, half-brother, half-sister, child, step- childand grand-child :

Provided that in deducing any suchrelationship as aforesaid any illegitimate personand any adopted person shall be treated as being,or as having been, the legitimate child of hismother and reputed father or, as the case maybe, of his adopters.

(3) An action to enforce the liability may bebrought by the personal representative of thepassenger or by any person for whose benefitthe liability is under sub-section (2) enforceable,but only one action shall be brought in India inrespect of the death of any one passenger, andevery such action by whomsoever brought shallbe for the benefit of all such persons so entitledas aforesaid as either are domiciled in India ornot being domiciled there express a desire totake the benefit of the action.

(4) Subject to the provisions of sub- section(5), the amount recovered in any such action,after deducting any costs not recovered fromthe defendant, shall be divided between thepersons entitled in such proportion as theCourt may direct.

(5) The Court before which any such actionis brought may, at any stage of the proceedings,make any such order as appears to the Court tobe just and equitable in view of the provisionsof the First Schedule or of the Second Schedule,as the case may be, limiting the liability of acarrier and of any proceedings which have beenor are likely to be commenced outside India inrespect of the death of the passenger in question.

6. Conversion of francs — Any sum infrancs mentioned in rule 22 of the First Scheduleor of the Second Schedule, as the case may be,

103


shall, for the purpose of any action against acarrier, be converted into rupees at the rate ofexchange prevailing on the date on which theamount of damages to be paid by the carrier isascertained by the Court.

7. Provisions regarding suits againstHigh Contracting Parties who undertakecarriage by air — (1) Every High ContractingParty to the Convention for the amendedConvention, as the case may be, who has notavailed himself of the provision, of theAdditional Protocol thereto shall, for thepurposes of any suit brought in a Court in Indiain accordance with the provisions, or rule 28 ofthe First Schedule, or of the Second Schedule,as the case may be, to enforce a claim in respectof carriage undertaken by him be deemed tohave submitted to the jurisdiction of that Courtand to be person for the purposes of the Code ofCivil Procedure, 1908 (5 of 1908).

(2) The High Court may make rules ofprocedure providing for all matters which maybe expedient to enable such suits to be institutedand carried on.

(3) Nothing in this section shall authoriseany Court to attach or sell any property of aHigh Contracting Party to the Convention or tothe amended Convention.

8. Application of Act to carriage by airwhich is not international — (1) The CentralGovernment may, by notification in the OfficialGazette, apply the rules contained in the FirstSchedule and any provision of section 3 orsection 5 or section 6 to such carriage by air,not being international carriage by air as definedin the First Schedule, as may be specified in thenotification, subject, however, to such

exceptions adaptations and modifications, ifany, as may be so specified.

(2) The Central Government may, bynotification in the Official Gazette, apply therules contained in the Second Schedule and anyprovision of section 4 or section 5 or section 6to such carriage by air, not being internationalcarriage by air as defined in the Second Schedule,as may be specified in the notification, subject,however, to such exceptions, adaptations andmodifications, if any, as may be so specified.

(3) Every notification issued by the CentralGovernment under section 4 of the IndianCarriage by Air Act, 1934 (20 of 1934) and inforce immediately before the commencementof this Act shall be deemed to have been issuedunder sub-section (1) and shall continue to bein force until such notification is superseded.

9. Repeal —The Indian Carriage by Air Act,1934 (20 of 1934) is hereby repealed.

THE FIRST SCHEDULE

(See Section 3)

Rules

CHAPTER I

Scope — Definitions

1. (1) These rules apply to all internationalcarriage of persons, luggage or goods performedby aircraft for reward. They apply also to suchcarriage when performed gratuitously by an airtransport undertaking.

(2) In these rules “ High Contracting party”means a High Contracting Party to theConvention.

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(3) For the purpose of these rules theexpression, “ international carriage” means anycarriage in which according to the contractmade by the parties, the place of departure andthe place of destination, whether or not therebe a break in the carriage or a transshipment,are situated either within the territories of twoHigh Contracting Parties, or within the territoryof a single High Contracting Party , if there isan agreed stopping place within a territorysubject to the sovereignty, suzerainty, mandateor authority of another Power, even though thatPower is not a party to the Convention. Acarriage without such an agreed stopping placebetween territories subject to the sovereignty,suzerainty, mandate or authority of the sameHigh Contracting Party is not deemed to beinternational for the purposes of these rules.

(4) A carriage to be performed by severalsuccessive air carriers is deemed, for thepurposes of these rules, to be one undividedcarriage, if it has been regarded by the parties asa single operation, whether it has been agreedupon under the form of a single contract or ofa series of contracts, and it does not loose itsinternational character merely because onecontract or a series of contracts is to beperformed entirely within a territory subject tothe sovereignty, suzerainty, mandate or authorityof the same High Contracting Party.

2. (1) These rules apply to carriageperformed by the State or by legally constitutedpublic bodies provided it falls within theconditions laid down in rule 1.

(2) These rules do not apply to carriageperformed under the terms of any internationalpostal Convention.

CHAPTER II

Documents of carriage

Part I— Passenger ticket

3. (1) For the carriage of passengers thecarrier must deliver a passenger ticket whichshall contain the following particulars :—

(a) the place and date of issue ;

(b) the place of departure and of destination;

(c) the agreed stopping places, providedthat the carrier may reserve the right toalter the stopping places in case ofnecessity, and that if he exercises thatright, the alteration shall not have theeffect of depriving the carriage of itsinternational character;

(d) the name and address of the carrier orcarriers;

(e) a statement that the carriage is subject tothe rules relating to liability containedin this Schedule.

(2) The absence, irregularity or loss of thepassenger ticket does not affect the existenceor the validity of the contract of carriage, whichshall none the less be subject to these rules.Nevertheless, if the carrier accepts a passengerwithout a passenger ticket having been deliveredhe shall not be entitled to avail himself of thoseprovision of his Schedule which exclude orlimit his liability.

Part II — Luggage ticket

4. (1) For the carriage of luggage, other thansmall personal objects of which the passengertake charge himself, the carrier must deliver aluggage ticket.

(2) The luggage ticket shall be made out induplicate, one part for the passenger and theother part for the carrier.

105

SCHEDULE I THE CARRIAGE BY AIR ACT, 1972 CHAP. VII

(3) The luggage ticket shall contain thefollowing particulars :—

(a) the place and date of issue ;


(c) the name and address of the carrier ofcarriers;

(d) the number of the passenger ticket;

(e) a statement that delivery of the luggagewill be made to the bearer of the luggageticket;

(f) the number and weight of the packages;

(g) the amount of the value declared inaccordance with rule 22(2);

(h) a statement that the carriage is subject tothe rules relating to liability containedin this Schedule.

(4) The absence, irregularity or loss of theluggage ticket does not affect the existence orthe validity of the contract of carriage, whichshall none the less be subject to those rules.Nevertheless, if the carrier accepts luggagewithout a luggage ticket having been delivered,or if the luggage ticket does not contain theparticulars set out at (d), (f) and (h) of sub-rule(3), the carrier shall not be entitled to availhimself of those provisions of the Schedulewhich exclude or limit his liability.

Part III — Air consignment note

5. (1) Every carrier of goods has the right torequire the consignor to make out and handover to him a document called an “ airconsignment note”; every consignor has theright to require the carrier to accept thisdocument.

(2) The absence, irregularity or loss of thisdocument does not affect the existence or thevalidity of the contract of carriage which shall,

subject to the provisions of rule, 9, be none theless governed by these rules.

6. (1) The air consignment note shall bemade out by the consignor in three originalparts and be handed over with the goods.

(2) The first part shall be marked “ for thecarrier” and shall be signed by the consignor.The second part shall be marked “for theconsignee”; it shall be signed by the consignorand by the carrier and shall accompany thegoods. The third part shall be signed by thecarrier and handed by him to the consignor afterthe goods have been accepted.

(3) The carrier shall sign an acceptance ofthe goods.

(4) The signature of the carrier may bestamped; that of the consignor may be printedor stamped.

(5) If , at the request of the consignor, thecarrier makes out the air consignment note, heshall be deemed, subject to proof to the contrary,to have done so on behalf of the consignor.

7. The carrier of goods has the right torequire the consignor to make out separateconsignment notes when there is more than onepackage.

8. The air consignment note shall containthe following particulars :—

(a) the place and date of its execution;


(c) the agreed stopping places, provided thatthe carrier may reserve the right to alterthe stopping places in case of necessity,and that if he exercises that right thealteration shall not have the effect ofdepriving the carriage of its internationalcharacter;

106


(d) the name and address of the consignor;

(e) the name and address of the first carrier;

(f) the name and address of the consignee,if the case so requires;

(g) the nature of the goods;

(h) the number of the packages, the methodof packing and the particular marks ofnumbers upon them;

(i) the weight, the quantity and the volumeor dimensions of the goods;

(j) the apparent condition of the goods andof the packing;

(k) the freight, if it has been agreed upon,the date and place of payment, and theperson who is to pay it;

(l) if the goods are sent for payment ondelivery, the price of the goods, and ifthe case so requires, the amount of theexpenses incurred;

(m) the amount of the value declared inaccordance with rule 22(2);

(n) the number of parts of the airconsignment note;

(o) the document handed to the carrier toaccompany the air consignment note;

(p) the time fixed for the completion of thecarriage and a brief note of the route tobe followed, if these matters have beenagreed upon;

(q) a statement that the carriage is subject tothe rules relating to liability containedin this Schedule.

9. If the carrier accepts goods without an airconsignment note having been made out, or ifthe air consignment note does not contain allthe particulars set out in rule 8 (a) to (i) inclusiveand (q), the carrier shall not be entitled to avail

himself of the provisions of this schedule whichexclude or limit his liability.

10. (1) The consignor is responsible for thecorrectness of the particulars and statementsrelating to the goods which he inserts in the airconsignment note.

(2) The consignor will be liable for all damagesuffered by the carrier or any other person byreason of the irregularity, incorrectness orincompleteness of the said particulars andstatements.

11. (1) The air consignment note is primafacie evidence of the conclusion of the contractof the receipt of the goods and of the conditionsof carriage.

(2) The Statements in the air consignmentnote relating to the weight, dimensions andpacking of the goods, as well as those relatingto the number of packages, are prima facieevidence of the facts stated; those relating tothe quantity, volume and conditions of the goodsdo not constitute evidence against the carrierexcept so far as they both have been, and arestated in the air consignment note to have beenchecked by him in the presence of the consignor,or relate to the apparent condition of the goods.

12. (1) Subject to his liability to carry outall his obligations under the contract of carriage,the consignor has the right to dispose of thegoods by with drawing them at the aerodromeof departure or destination, or by stopping themin the course of the journey on any landing or,by calling for them to be delivered at the placeof destination or in the course of the journey toa person other than the consignee named in theair consignment note, or by requiring them tobe returned to the aerodrome of departure. Hemust not exercise the right of disposition insuch a way as to prejudice the carrier or otherconsignors and he must repay any expensesoccasioned by the exercise of this right.

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(2) If it is impossible to carry out the ordersof the consignor the carrier must so inform himforthwith.

(3) If the carrier obeys the orders of theconsignor for the disposition of the goodswithout requiring the production of the part ofthe air consignment note delivered to the latter,he will be liable, without prejudice to his rightof recovery from the consignor, for any damagewhich may be caused thereby to any person whois lawfully in possession of that part of the airconsignment note.

(4) The right conferred on the consignorceases at the moment when that of the consigneebegins in accordance with rule 13. Nevertheless,if the consignee declines to accept theconsignment note or the goods, or if he cannotbe communicated with, the consignor resumeshis rights of disposition.

13. (1) Except in the circumstances set outin rule 12, the consignee is entitled, on arrivalof the goods at the place of destination, torequire the carrier to hand over to him the airconsignment note and to deliver the goods tohim, on payment of the charges due and oncomplying with the conditions of carriage setout in the air consignment note.

(2) Unless it is otherwise agreed it is theduty of the carrier to give notice to the consigneeas soon as the goods arrive.

(3) If the carrier admits the loss of thegoods, or if the goods have not arrived at theexpiration of seven days after the date on whichthey ought to have arrived, the consignee isentitled to put into force against the carrier therights which flow from the contract of carriage.

14. The consignor and the consignee canrespectively enforce all the rights given to them

by rules 12 and 13, each in his own name,whether he is acting in his own interest or in theinterest of another, provided that he carriersout the obligations imposed by the contract.

15. (1) Rules 12, 13, and 14 do not affecteither the relations of the consignor or theconsignee, with each other or the mutualrelations of third parties whose rights arederived either from the consignor or from theconsignee.

(2) The provisions of rules 12, 13 and 14can only be varied by express provision in theair consignment note.

16. (1) The consignor must furnish suchinformation and attach to the air consignmentnote such documents as are necessary to meetthe formalities of customs, octroi or policebefore the goods can be delivered to theconsignee. The consignor is liable to the carrierfor any damage occasioned by the absence, insufficiency or irregularity of any suchinformation or documents, unless the damageis due to the fault of the carrier or his agents.

(2) The carrier is under no obligation toenquire into the correctness or sufficiency ofsuch information or documents.

CHAPTER III

LIABILITY OF THE CARRIER

17. The carrier is liable for damage sustainedin the event of the death or wounding of apassenger or any other bodily injury sufferedby a passenger, if the accident which caused thedamage so sustained took place on board theaircraft or in the course of any of the operationsof embarking or disembarking.

18. (1) The carrier is liable for damagesustained in the event of the destruction or lossof, or of damage to, any registered luggage or

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any goods, if the occurrence which caused thedamage so sustained took place during thecarriage by air.

(2) The carriage by air within the meaning ofsub-rule (1) comprises the period during whichthe luggage or goods are in charge of thecarrier, whether in an aerodrome or on board anaircraft, or in the case of a landing outside anaerodrome, in any place whatsoever.

(3) The period of the carriage by air doesnot extend to any carriage by land, by sea or byriver performed outside an aerodrome. Ifhowever, such a carriage takes place in theperformance of a contract for carriage by air,for the purpose of loading, delivery ortransshipment, any damage is presumed, subjectto proof to the contrary, to have been the resultof an event which took place during the carriageby air.

19. The carrier is liable for damageoccasioned by delay in the carriage by air ofpassengers, luggage or goods.

20. (1) The carrier is not liable if he provesthat he and his agents have taken all necessarymeasures to avoid the damage or that it wasimpossible for him or them to take suchmeasures.

(2) In the carriage of goods and luggage thecarrier is not liable if he proves that the damagewas occasioned by negligent pilotage ornegligence in the handing of the aircraft or innavigation and that, in all other respects, he andhis agents have taken all necessary measures toavoid the damage.

21. If the carrier prover that the damage wascaused by or contributed to by the negligenceof the injured person the Court may exoneratethe carrier wholly or partly from his liability.

22. (1) In the carriage of passengers theliability of the carrier for each passenger islimited to the sum of 1,25,000 francs. Wheredamages may be awarded in the form ofperiodical payments, the equivalent capital valueof the said payments shall not exceed 1,25,000francs. Nevertheless, by special contract thecarrier and the passenger may agree to a higherlimit of liability.

(2) In the carriage of registered luggage andof goods, the liability of the carrier is limited toa sum of 250 francs per kilogram, unless theconsignor has made, at the time when the packagewas handed over to the carrier, a specialdeclaration of the value at delivery and has paida supplementary sum it the case so requires. Inthat case the carrier will be liable to pay a sumnot exceeding the declared sum, unless he provesthat sum is greater than the actual value to theconsignor at delivery.

(3) As regards objects of which thepassenger takes charge himself the liability ofthe carrier is limited to 5,000 francs perpassenger.

(4) The sums mentioned in this rule shall bedeemed to refer to the French franc consistingof sixty-five and a half milligrams gold ofmillesimal fineness nine hundred.

23. Any provision tending to relieve thecarrier of liability or to fix a lower limit thanthat which laid down in these rules shall be nulland void, but the nullity of any such provisiondoes not involve the nullity of the whole contractwhich shall remain subject to the provisions ofthis Schedule.

24. (1) In the cases covered by rules 18 and19 any action for damages, however founded,can only be brought subject to the conditionsand limits set out in this Schedule.

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(2) In the cases covered by rules 17, theprovisions of sub-rule (1) also apply, withoutprejudice to the questions as to who are thepersons who have the right to bring suit andwhat are their respective rights.

25. (1) The carrier shall not be entitled toavail himself of the provisions of this Schedulewhich exclude or limit his liability, if the damageis caused by his wilful misconduct or by suchdefault on his part as is in the opinion of theCourt equivalent to wilful misconduct.

(2) Similarly the carrier shall not be entitledto avail himself of the said provisions, if thedamage is caused as aforesaid by any agent ofthe carrier acting within the scope of hisemployment.

26. (1) Receipt by the person entitled todelivery of luggage or goods without complaintis prima facie evidence that the same have beendelivered in good condition and in accordancewith the document of carriage.

(2) In the case of damage, the person entitledto delivery must complain to the carrier forthwithafter the discovery of the damage, and, at thelatest, within three days from the date ofreceipt in the case of luggage and seven daysfrom the date of receipt in the case of goods. Inthe case of delay the complaint must be madeat the latest within fourteen days from the dateon which the luggage or goods have been placedat his disposal.

(3) Every complaint must be made in writingupon the document of carriage or by separatenotice in writing despatched within the timeaforesaid.

(4) Failing complaint within the times

aforesaid, no action shall lie against the carrier,save in the case of fraud on his part.

27. In the case of the death of the personliable, an action for damages lies in accordancewith these rules against those legallyrepresenting his estate.

28. An action for damages must be broughtat the option of the plaintiff, either before theCourt having jurisdiction where the carrier isordinarily resident, or has his principal place ofbusiness, or has an establishment by which thecontract has been made or before the Courthaving jurisdiction at the place of destination.

29. The right of damages shall beextinguished if an action is not brought withintwo years, reckoned from the date of arrival atthe destination, or from the date on which theaircraft ought to have arrived, or from the dateon which the carriage stopped.

30. (1) In the case of carriage to beperformed by various successive carriers andfalling within the definition set out in sub-rule(4) of rule 1, each carrier who acceptspassengers, luggage or goods is subjected tothe rules set out in this Schedule, and is deemedto be one of the contracting parties to thecontract of carriage in so far as the contractdeals with that part of the carriage which isperformed under his supervision.

(2) In the case of carriage of this nature, thepassenger or his representative can take actiononly against the carrier who performed thecarriage during which the accident or the delayoccurred, save in the case where, by expressagreement, the first carrier has assumed liabilityfor the whole journey.

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(3) As regards luggage or goods, thepassenger or consignor, will have the right ofactionagainst the first carrier, and the passengeror consignee who is entitled to delivery willhave a right of action against the last carrier, andfurther, each may take action against the carrierwho performed the carriage during which thedestruction, loss, damage or delay took place.These carriers will be jointly and severallyliable to the passenger or to the consignor orconsignee.

CHAPTER IV

PROVISIONS RELATING TOCOMBINED CARRIAGE

31. (1) In the case of combined carriageperformed partly by air and partly by any othermode of carriage, the provisions of this Scheduleapply only to the carriage by air, provided thatthe carriage by air falls within the terms of rule1.

(2) Nothing in this Schedule shall preventthe parties in the case of combined carriagefrom inserting in the document of air carriageconditions relating to other modes of carriage,provided that the provisions of this Scheduleare observed as regards the carriage by air.

CHAPTER V

GENERAL AND FINALPROVISIONS

32. Any clause contained in the contract andall special agreements entered into before thedamage occurred by which the parties purportto infringe the rules laid down by this Schedule,whether by deciding the law to be applied, or byaltering the rules as to jurisdiction, shall be nulland void. Nevertheless for the carriage of goods,arbitration clauses are allowed, subject to theserules, if the arbitration is to take place in theterritory of one of the High Contracting Parties

within one of the jurisdictions referred to inrule 28.

33. Nothing contained in this scheduleshall prevent carrier either from refusing toenter into any contract of carriage, or frommaking regulations which do not conflict withthe provisions of this Schedule.

34. This Schedule does not apply tointernational carriage by air performed by wayof experimental trial by air navigationundertakings with the view to the establishmentof a regular line of air navigation, nor does itapply to carriage performed in extraordinarycircumstances outside the normal scope of anair carrier’s business.

35. The expression “days” when used inthese rules means current days, not workingdays.

36. When a high Contracting Party hasdeclared at the time of ratification of or ofaccession to the Convention that sub-rule (1)of rule 2 of these rules shall not apply tointernational carriage by air performed directlyby the State its colonies protectorates ormandated territories or by any other territoryunder its sovereignty, suzerainty or authority,these rules shall not apply to internationalcarriage by air so performed.

THE SECOND SCHEDULE

(See Section 4)

RULES

CHAPTER 1

SCOPE—DEFINITIONS

1. (1) These rules apply to all internationalcarriage of persons, baggage or cargo performedby aircraft for reward. They apply equally togratuitous carriage by aircraft performed by anair transport undertaking.

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(2) In these rules, “High Contracting Party”means a High Contracting Party to the amendedConvention.

(3) For the purposes of these rules, theexpression, “international carriage” means anycarriage in which, according to the agreementbetween the parties, the place of departure andthe place of destination, whether or not there bea break in the carriage or a transshipment, aresituated either within the territories of twoHigh Contracting parties or within the territoryof a single High Contracting Party if there is anagreed stopping place within the territory ofanother State, even if that State is not HighContracting Party. Carriage between two pointswithin the territory of a single High ContractingParty with an agreed stopping place within theterritory of another State is not internationalcarriage for the purposes of these rules.

(4) Carriage to be performed by severalsuccessive air carriers is deemed, for thepurposes of these rules to be one undividedcarriage if it has been regarded by the parties asa single operation, whether it had been agreedupon under the form of a single contract or ofa series of contracts, and it does not lose itsinternational character merely because onecontract or a series of contracts is to beperformed entirely within the territory of thesame State.

2. (1) These rules apply to carriageperformed by the state or by legally constitutedpublic bodies provided it falls within theconditions laid down in rule 1.

(2) These rules shall not apply to carriageof mail and postal packages.

CHAPTER II

DOCUMENTS OF CARRIAGE

Part I — Passenger ticket

3. (1) In respect of the carriage of passengersa ticket shall be delivered containing:

(a) an indication of the places of departureand destination;

(b) if the places of departure and destinationand within the territory of a single HighContracting Party one or more agreedstopping places being within the territoryof another State, an indication of at leastone such stopping place;

(c) a notice to the effect that, if thepassenger’s journey involves an ultimatedestination or stop in a country otherthan the country of departure, theamended Convention may applicable andthat the amended Convention governsand in most cases limits the liability ofcarriers for death or personal injury andin respect of loss of, or damage to,baggage.

(2) The passenger ticket shall constituteprima facie evidence of the conclusion andconditions of the contract of carriage. Theabsence, irregularity or loss of the passengertickets does not affect the existence or thevalidity of the contract of carriage which shall,none the less, be subject to these rules.Nevertheless, if, with the consent of the carrier,the passenger embarks without a passenger tickethaving been delivered, or if the ticket does notinclude the notice required by sub-rule (1) (c)of this rule, the carrier shall not be entitled toavail himself of the provisions of rule 22.

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SCHEDULE II THE CARRIAGE BY AIR ACT, 1972 CHAP. VII

Part II — Baggage check

4. (1) In respect of the carriage of registeredbaggage, a baggage check shall be delivered,which, unless combined with or incorporated ina passenger ticket which complies with theprovisions of sub-rule (1) of rule 3 shall contain:

(a) an indication of the places of departureand destination;

(b) if the places of departure and destinationare within the territory of a single HighContracting Party, one or more agreedstopping places being within the territoryof another State, and indication of atleast one such stopping place;

(c) a notice to the effect that, if the carriageinvolves an ultimate destination or stopin a country other than the country ofdeparture, the amended Convention maybe applicable and that the amendedConvention governs and in most caseslimits the liability of carriers in respectof loss of, or damage to, baggage.

(2) The baggage check shall constitute primafacie evidence of the registration of the baggageand of the conditions of the contract of thecarriage. The absence, irregularity or loss ofthe baggage check does not affect the existenceor the validity of the contract of carriage whichshall, none the less, be subject to these rules.Nevertheless, if the carrier takes charge of thebaggage without a baggage check having beendelivered or if the baggage check [unlesscombined with or incorporated in the passengerticket which complies with the provisions ofsub-rule (1) (c) of rule 3] does not include thenotice required by sub-rule (1) (c) of this rule,

he shall not be entitled to avail himself of theprovisions of sub-rule (2) of rule 22.

Part III — Air way bill

5. (1). Every carrier of cargo has the right torequire the consignor to make out and hand overto him a document called an “air waybill”; everyconsignor has the right to require the carrier toaccept this document.

(2) The absence, irregularity or loss of thisdocument does not affect the existence or thevalidity of the contract of carriage which shall,subject to the provisions of rule 9, be none theless governed by these rules.

6. (1) The air waybill shall be made out bythe consignor in three original parts and behanded over with the cargo.

(2) The first part shall be marked “for thecarrier”, and shall be signed by the consignor.The second part shall be marked “for theconsignee”; it shall be signed by the consignorand by the carrier and shall accompany thecargo. The third part shall be signed by thecarrier and handed by him to the consignor afterthe cargo has been accepted.

(3) The carrier shall sign prior to the loadingof the cargo on board the aircraft.

(4) The signature of the carrier may bestamped; that of the consignor may be printedor stamped.

(5) If, at the request of the consignor, thecarrier makes out the air waybill, he shall bedeemed, subject to proof to the contrary, tohave done so on behalf of the consignor.

7. The carrier of cargo has the right torequire the consignor to make out separatewaybills when there is more than one package.

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8. The air waybill shall contain :

(a) an indication of the places of departureand destination.

(b) if the places of departure and destinationare within the territory of a single HighContracting Party, one or more agreedstopping places being within the territoryof another State, an indication of at leastone such stopping place;

(c) a notice to the consignor to the effectthat, if the carriage involves an ultimatedestination or stop in a country otherthan the country of departure, theamended Convention may be applicableand that the amended Convention governsand in most cases limits the liability ofcarriers in respect of loss of, or damageto, cargo.

9. If, with the consent of the carrier, cargois loaded on board the aircraft without an airwaybill having been made out, or if the airwaybill does not include the notice required byrule 8(c), the carrier shall not be entitled toavail himself of the provisions of sub-rule (2)of rule 22.

10. (1) The consignor is responsible for thecorrectness of the particulars and statementsrelating to the cargo which he inserts in the airwaybill.

(2) The consignor shall indemnify the carrieragainst all damage suffered by him, or by anyother person to whom the carrier is liable, byreason of the irregularity, incorrectness orincompleteness of the particulars and statementsfurnished by the consignor.

11.(1) The airway bill is prima facieevidence of the conclusion of the contract ofthe receipt of the cargo and of the conditions ofcarriage.

(2) The statements in the air waybill relatingto the weight dimensions and packing of the

cargo as well as those relating to the number ofpackages, are prima facie evidence of the factsstated; those relating to the quantity, volumeand condition of the cargo do not constituteevidence against the carriers except so far asthey both have been, and are stated in the airwaybill to have been, checked by him in thepresence of the consignor, or relate to theapparent condition of the cargo.

12. (1) Subject to his liability to carry outall his obligations under the contract of carriage,the consignor has the right to dispose of thecargo by withdrawing it at the aerodrome ofdeparture or destination, or by stopping it in thecourse of the journey on any landing, or bycalling for it to be delivered at the places ofdestination or in the course of the journey to aperson other than the consignee named in theair waybill or by requiring it to be returned tothe aerodrome of departure. He must notexercise this right of disposition in such a wayas to prejudice the carrier or other consignorsand he must repay any expenses occasioned bythe exercise of this right.

(2) If it is impossible to carry out the ordersof the consignor the carrier must so inform himforthwith.

(3) If the carrier obeys the orders of theconsignor for the disposition of the cargowithout requiring the production of the part ofthe air waybill delivered to the latter, he will beliable, without prejudice to his right of recoveryfrom the consignor, for any damage which maybe caused thereby to any person who is lawfullyin possession of that part of the air waybill.

(4) The right conferred on the consignorceases at the moment when that of the consigneebegins in accordance with rule 13. Nevertheless,if the consignee declines to accept the waybillor the cargo, or if he cannot be communicatedwith, the consignor resumes his right ofdisposition.

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13. (1) Except in the circumstances set outin the preceding rule, the consignee is entitledon arrival of the cargo at the place of destinationto require the carrier to hand over to him the airwaybill and to deliver the cargo to him, onpayment of the charged due and on complyingwith the conditions of carriage set out in the airwaybill.

(2) Unless it is otherwise agreed, it is theduty of the carrier to give notice to the consigneeas soon as the cargo arrives.

(3) If the carrier admits the loss of thecargo, or if the cargo has not arrived at theexpiration of seven days after the date on whichit ought to have arrived, the consignee is entitledto put into force against the carrier the rightswhich flow from the contract of carriage.

14. The consignor and the consignee canrespectively enforce all the rights given tothem by rules 12 and 13 each in his own name,whether he is acting in his own interest or in theinterest of another, provided that he carries outthe obligations imposed by the contract.

15. (1) Rules 12, 13 and 14 do not affecteither the relations of the consignor or theconsignee with each other or mutual relationsof third parties whose rights are derived eitherfrom the consignor or from the consignee.

(2) The provisions of rules 12, 13 and 14can only be varied by express provision in theair waybill.

(3) Nothing in these rules prevents the issueof a negotiable air waybill.

16.(1) The consignor must furnish suchinformation and attach to the air waybill suchdocuments as are necessary to meet theformalities of customs, octroi or police beforethe cargo can be delivered to the consignee. The

consignor is liable to the carrier for any damageoccasioned by the absence, insufficiency orirregularity of any such information ordocuments, unless the damage is due to thefault of the carrier or his servants or agents.


CHAPTER III


17. The carrier is liable for damage sustainedin the event of the death or wounding of apassenger or any other bodily injury sufferedby a passenger, if the accident which caused thedamage so sustained took place on board theaircraft or in the course of any of the operationsof embarking or disembarking.

18. (1) The carrier is liable for damagesustained in the event of the destruction or lossof, or of damage to, any registered baggage orany cargo, if the occurrence which caused thedamage so sustained took place during thecarriage by air.

(2) The carriage by air within the meaning ofthe preceding sub-rule comprises the periodduring which the baggage or cargo is in chargeof the carrier, whether in an aerodrome or onboard an aircraft, or, in the case of a landingoutside an aerodrome, in any place whatsoever.

(3) The period of the carriage by air doesnot extend to any carriage by land, by the sea orby river performed outside an aerodrome. Ifhowever, such a carriage takes place in theperformance of a contract for carriage by air,for the purpose of loading, delivery ortransshipment, any damage is presumed, subjectto proof to the contrary, to have been the resultof an event which took place during the carriageby air.

115


19. The carrier is liable for damageoccasioned by delay in the carriage by air ofpassengers, baggage or cargo.

20. The carrier is not liable if he proves thathe and his servants or agents have taken allnecessary measures to avoid the damage or thatit was impossible for him or them to take suchmeasures.

21. If the carrier proves that the damage wascaused by or contributed to by the negligenceof the injured person the Court may, inaccordance with the provisions of its own law,exonerate the carrier wholly or party from hisliability.

22. (1) In the carriage of persons the liabilityof the carrier for each passenger is limited tothe sum of 2,50,000 francs. Where in accordancewith the law of the Court Seized of the case,damages may be awarded in the form ofperiodical payments the equivalent capital valueof the said payments shall not exceed 2.50.000francs. Nevertheless, by special contract, thecarrier and the passenger may agree to a higherlimit of liability.

(2) (a) In the carriage of registered baggageand of cargo, the liability of the carrier islimited to a sum of 250 francs per kilogram,unless the passengers or consignor has made, atthe time when the package was handed over tothe carrier, a special declaration of interest indelivery at destination and has paid asupplementary sum if the case so requires. Inthat case the carrier will be liable to pay a sumnot exceeding the declared sum, unless he provesthat, that sum is greater than the passenger’s orconsignor’s actual interest in delivery atdestination.

(b) In the case of loss, damage or delay ofpart of registered baggage or cargo, or of any

object contained therein, the weight to be takeninto consideration in determining the amountto which the carrier’s liability is limited shallbe only the total weight of the packages orpackages concerned. Nevertheless, when theloss damage or delay of a part of the registeredbaggage or cargo, or of an object containedtherein, affects the value of other packagescovered by the same baggage check or the sameair waybill, the total weight of such package orpackages shall also be taken into considerationin determining the limit of liability.

(3) As regards objects of which thepassenger takes charge himself the liability ofthe carrier is limited to 5,000 francs perpassenger.

(4) The limits prescribed in this rule shallnot prevent the Court from awarding, inaccordance with its own law, in addition, thewhole or part of the Court costs and of the otherexpenses of the litigation incurred by theplaintiff. The foregoing provision shall not applyif the amount of the damages awarded, excludingCourt cost and other expenses of the litigation,does not exceed the sum which the carrier hasoffered in writing to the plaintiff within a periodof six months from the date of the occurrencecausing the damage, or before thecommencement of the action, if that is later.

(5) The sums mentioned in francs in thisrule shall be deemed to refer to a currency unitconsisting of sixty-five and a half milligramsof gold of millesimal fineness nine hundred.These sums may be converted into nationalcurrencies in round figures. Conversion of thesums into national currencies other than goldshall, in case of judicial proceedings, be madeaccording to the gold value of such currenciesat the date of the judgement.

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23. (1) Any provision tending to relieve thecarrier of liability or to fix a lower limit thanthat which is laid down in these rules shall benull and void, but the nullity of any suchprovision does not involve the nullity of thewhole contract, which shall remain subject tothe provisions of these rules.

(2) Sub-rule (1) of this rule shall not applyto provisions governing loss or damage resultingfrom the inherent defect, quality or vice of thecargo carried.

24. (1) In the cases covered by rules 18 and19 any action for damages, however founded,can only be brought subject to the conditionsand limits set out in these rules.

(2) In the cases covered by rule 17 theprovisions of the preceding sub-rule also apply,without prejudice to the questions as to who arethe persons who have the right to bring suit andwhat are their respective rights.

25. The limits of liability specified in rule22 shall not apply if it is proved that the damageresulted from an act or omission of the carrier,his servants or agents, done with intent to causedamage or recklessly and with knowledge thatdamage would probably result; provided that inthe case of such act or omission of a servant oragent, it is also proved that he acting within thescope of his employment.

26.(1) If an action is brought against a servantor agent of the carrier arising out of damage towhich these rules relate, such servant or agent,if he proves that he acted within the scope ofhis employment, shall be entitled to availhimself of the limits of liability which thatcarrier himself is entitled to invoke under rule22.

(2) The aggregate of the amountrecoverable from that he acted within the scopeof his employment, shall not exceed the saidlimits.

(3) The provisions of sub-rules (1) and (2)of this rule shall not apply if it is proved that thedamage resulted from an act or omission of theservant or agent done with intent to causedamage or recklessly and with knowledge thatdamage would probably result.

27. (1) Receipt by the person entitled todelivery of baggage or cargo without complaintis prima facie evidence that the same has beendelivered in good condition and in accordancewith the document of carriage.

(2) In the case of damage, the personentitled to delivery must complain to thecarrier forthwith after the discovery of thedamage, and, at the latest, within seven daysfrom the date of receipt in the case ofbaggage and fourteen days from the date ofreceipt in the case of cargo. In the case of delaythe complaint must be made at the latestwithin twenty one days from the date on whichthe baggage or cargo have been placed athis disposal.

(3) Every complaint must be made in writingupon the document of carriage or by separatenotice in writing despatched within the timesaforesaid.

(4) Failing complaint within the timesaforesaid, no action shall lie against the carrier,save in the case of fraud on his part.

28. In the case of the death of the personliable, an action for damages lies in accordance

117


with the terms of these rules against thoselegally representing his estate.

29. (1) An action for damages must bebrought, at the option of the plaintiff, in theterritory of one of the High Contracting Parties,either before the Court having jurisdiction wherethe carrier is ordinarily resident, or has hisprincipal place of business, or has anestablishment by which the contract has beenmade or before the court having jurisdiction atthe place of destination.

(2) Questions of procedure shall be governedby the law of the Court seized of the case.

30. (1) The right to damages shall beextinguished if an action is not brought withintwo years, reckoned from the date of arrival atthe destination, or from the date on which theaircraft ought to have arrived, or from the dateon which the carriage stopped.

(2) The method of calculating the period oflimitation shall be determined by the law of theCourt seized of the case.

31. (1) In the case of carriage to beperformed by various successive carriers andfalling within the definition set out in sub-rule(3) of rule 1, each carrier who acceptspassengers, baggage or cargo is subjected tothe rules set out in this Schedule, and is deemedto be one of the contracting parties to thecontract of carriage in so far as the contractdeals with that part of the carriage which isperformed under his supervision.

(2) In the case of carriage of this nature, thepassenger or his representative can take actiononly against the carrier who performed thecarriage during which the accident or the delayoccurred, save in the case where, by express

agreement, the first carrier has assumed liabilityfor the whole journey.

(3) As regards baggage or cargo, thepassenger or consignor will have a right oraction against the first carrier, and the passengeror consignee who is entitled to delivery willhave a right of action against the last carrier,and further, each may take action against thecarrier who performed the carriage during whichthe destruction, loss, damage or delay tookplace. These carriers will be jointly and severallyliable to the passenger or to the consignor orconsignee.

CHAPTER IV


32. (1) In the case of combined carriageperformed partly by air and partly by any othermode of carriage, the provisions of this Scheduleapply only to the carriage by air, provided thatthe carriage by air falls within the terms of rule1.

(2) Nothing in this Schedule shall preventthe parties in the case of combined carriagefrom inserting in the document of air carriageconditions relating to other modes of carriage,provided that the provisions of this Scheduleare observed as regards the carriage by air.

CHAPTER V


33. Any clause contained in the contract andall special agreements entered into before thedamage occurred by which the parties purportto infringe the rules laid down by this Schedule,

118


whether by deciding the law to be applied, or byaltering the rules as to jurisdiction, shall be nulland void. Nevertheless, for the carriage of cargoarbitration clauses are allowed, subject to theserules, if the arbitration is to take place withinone of the jurisdictions referred to in sub-rule(1) of rule 29.

34. Nothing contained in this Schedule shallprevent the carrier either from refusing to enterinto any contract of a carriage, or from making

regulations which do not conflict with theprovision of this Schedule.

35. The provisions of rules 3 to 9 (inclusive)relating to documents of carriage shall notapply in the case of carriage performed inextraordinary circumstances outside the normalscope of an air carrier’s business.

36. The expression “days” when used inthese rules means current days, not workingdays.

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120

CHAPTER VIII

THE TOKYO CONVENTION ACT, 1975

(20 OF 1975)

CHAPTER VIII


TABLE OF CONTENTS

SECTIONS PAGES

CHAPTER I

PRELIMINARY

1. Short title, extent and commencement . . . . . 122

CHAPTER II

DEFINITIONS

2. Definitions . . . . . . . . . 122

CHAPTER III

OFFENCE

3. Application of criminal law to aircraft . . . . . 123

4. Provisions as to Extradition Act . . . . . 124

5. Powers of commander of aircraft . . . . . . 124

6. Jurisdiction . . . . . . . . . 125

7. Provisions as to evidence in connection with aircraft . . . 126

8. Provisions as to documentary evidence . . . . . 126

CHAPTER IV

MISCELLANEOUS

9. Power to apply the provisions of Act with modifications to certain aircraft . 127

10. Contracting Parties to convention . . . . . . 127

11. Power to treat certain aircraft to be registered in convention country . . 127

121

THE TOKYO CONVENTION ACT, 1975 CHAP. VIII

To give effect to the Convention of offencesand certain other acts committed on boardaircraft

WHEREAS a Convention on offences andcertain other acts committed on board aircraftwas on the Fourteenth day of September, 1963signed at Tokyo;

AND WHEREAS it is expedient that Indiashould accede to the said Convention and shouldmake provisions for giving effect thereto;

BE it enacted by Parliament in the Twenty-sixth year of the Republic of India as follows -

CHAPTER I

PRELIMINARY

1. Short title, extent and commencement— (1) This Act may be called the TokyoConvention Act, 1975.

(2) It extends to the whole of India.


CHAPTER II

DEFINITIONS

2. Definitions — (1) In this Act, unless thecontext otherwise requires, —

(a) “aircraft” means any aircraft, whether ornot registered in India, other than

(i) a military aircraft; or

(ii) an aircraft belonging to, orexclusively employed in the service

of, the State;

(b) “appropriate authority” means —

(i) in relation of India, any policeofficer not below the rank of anAssistant Sub- Inspector or anyImmigration Officer, and

(ii) in relation to any other country,being a Convention country, anyofficer having functions correspond-ing to the functions in India eitherof a police officer not below therank of an Assistant Sub-Inspectoror of an Immigration Officer;

(c) “commander” in relation to an aircraft,means the member of the crew designatedas commander of the aircraft by theoperator thereof, or failing such a person,the person who is for the time being thepilot-in-command of the aircraft;

(d) “Convention country” means a countryin which the Tokyo Convention is for thetime being in force;

(e) “Indian registered aircraft” means anaircraft—

(A) which is for the time beingregistered in India;

(B) which is not for the time beingregistered in any country but in thecase of which either the operatorof the aircraft of each personentitled as owner to any legal orbeneficial interest in it satisfies thefollowing requirements, namely :—

CHAPTER VIII


(20 of 1975)

122


(i) that he is a person qualified tobe owner of a legal or benefi-cial interest in an aircraft regis-tered in India; and

(ii) that he resides or has his princi-pal place of business of India;or

(C) which, for the time being registeredin any country other than India, isfor the time being chartered bydemise to a person who, or topersons each of whom, satisfies therequirements specified in sub-clause (B) (i) and (ii);

(f) “military aircraft” means an aircraft ofthe naval, military or air force of anycountry and includes every aircraft,commanded by a person in naval, militaryor air force service, detailed for thepurpose;

(g) “operator”, in relation to an aircraft atany time, means the person who at thattime has the management of the aircraft;

(h) “pilot-in-command”, in relation to anaircraft, means a person who for thetime being is in-charge of the piloting ofthe aircraft without being under thedirections of any other pilot in the aircraftand responsible for the operation andsafety of the aircraft during flight time;

(i) “Tokyo Convention” means theConvention on offences and certain otheracts committed on board aircraft signedat Tokyo on the Fourteenth day ofSeptember, 1963;

(j) any reference to a country or to theterritorial limits thereof shall beconstrued as including a reference tothe territorial waters, if any, of thatcountry, and any reference to an aircraftin flight shall include a reference to anaircraft during any period when it is on

the surface of the sea or land but notwithin the territorial limits of anycountry.

(2) For the purposes of this Act, the periodduring which an aircraft is in flight shall bedeemed to include any period from the momentwhen power is applied for the purpose of theaircraft taking off on a flight until the momentwhen the landing run, if any, at the terminationof that flight ends; and for the purposes ofsection 5 the aforesaid period shall also bedeemed to include —

(i) any further period from the moment whenall external doors, if any, of the aircraftare closed following embarkation for aflight until the moment when any suchdoor is opened for disembarkation, afterthat flight;

(ii) if the aircraft makes a forced landing,any period thereafter until the time —

(a) in a case where the forced landingtakes place in India, when theappropriate authority arrives at theplace of such forced landing; and

(b) in any other case when theappropriate authority takes over theresponsibility for the aircraft andfor the persons and property on boardthe aircraft.

CHAPTER III

OFFENCES

3. Application of criminal law toaircraft — (1) Any act or omission takingplace on board an Indian registered aircraftwhile in flight elsewhere than in or over Indiawhich, if taking place in India, would constitutean offence under any law in force in India shallconstitute that offence:

Provided that this sub-section shall notapply to any act or omission which is expressly

123


or impliedly authorised by or under any law ofa country outside India, where the aircraft is inflight.

(2) No proceedings for an offence underany law in force in India, committed on boardan aircraft while in flight elsewhere than in orover India (other than an offence under theAircraft Act, 1934), (22 of 1934) shall beinstituted except by or with the consent of theCentral Government.

(3) Nothing contained in sub-section (2)shall prevent the arrest, or the issue of a warrantfor the arrest, of any person in respect of anyoffence, or the remanding in custody or on bailof any person charged with any offence.

4. Provisions as to Extradition Act —For the purposes of application of the ExtraditionAct, 1962 (34 of 1962) to crimes committedon board an aircraft in flight, any aircraftregistered in a Convention country shall, at anytime while that aircraft is in flight, be deemedto be within the jurisdiction of that country,whether or not it is for the time being alsowithin the jurisdiction of any other country.

5. Powers of commander of aircraft —(1) If the commander of an aircraft in flight,wherever the aircraft may be, has reasonablegrounds to believe in respect of any person onboard the aircraft —

(a) that the person in question has done or isabout to do any act on the aircraft whileit is in flight which jeopardises or mayjeopardise—

(i) the safety of the aircraft or ofpersons or property on board theaircraft; or

(ii) the good order and discipline onboard the aircraft; or

(b) that the person in question has done onthe aircraft while in flight any act whichin the opinion of the commander is anoffence under any law in force in thecountry in which the aircraft is registered,not being a law of a political nature orbased on racial or religiousdiscrimination,

then, subject to the provisions of sub-section(4), the commander may take with respect tothat person such reasonable measures, includingrestraint of his person, as may be necessary —

(i) to protect the safety of the aircraft or ofpersons or property on board the aircraft;or

(ii) to maintain good order and disciplineon board the aircraft; or

(iii) to enable the commander to disembarkor deliver that person in accordance withthe provisions of sub-section (5).

(2) The aircraft commander may requirethe assistance of other crew members and mayrequest, but not require, the assistance ofpassengers or authorise other crew membersand passengers, to restrain any person whom heis entitled to restrain.

(3) Any crew member or passenger alsotake reasonable preventive measures withoutany authorisation under sub-section (2) whenhe has reasonable grounds to believe that suchaction is immediately necessary to protect thesafety of the aircraft, or of persons or propertytherein.

(4) Any restraint imposed on any person onboard an aircraft under the powers conferred bythe foregoing provisions of the section shallnot be continued after the time when the aircraftfirst thereafter ceases to be in flight unlessbefore or as soon as is reasonably practicable

124


after that time, the commander of the aircraftcauses notification of the fact that a person onboard the aircraft is under restraint and of thereasons therefor to be sent to the appropriateauthority of the country in which the aircraft soceases to be in flight, but subject to suchnotification may be continued after that time—

(a) for any period (including the period ofany further flight) between that time andthe first occasion thereafter on whichthe commander is able with any requisiteconsent of the appropriate authorities todisembark or deliver the person underrestraint in accordance with theprovisions of sub-section (5); or

(b) if the person under restraint agrees tocontinue his journey under restraint onboard that aircraft.

(5) The commander of an aircraft —

(a) if, in the case of any person on board theaircraft, he has reasonable grounds-

(i) to believe as mentioned in clause(a) of sub-section (1); and

(ii) to believe that it is necessary so todo in order to protect the safety ofthe aircraft or of persons or propertyon board the aircraft or to maintaingood order and discipline on boardthe aircraft,

may disembark that person in any countryin which that aircraft may be; and

(b) if, in the case of any person on board theaircraft, he was reasonable grounds tobelieve as mentioned in clause (b) ofsub-section (1), may deliver that personto the appropriate authority.

(6) The commander of an aircraft —

(a) if he disembarks any person in pursuanceof clause (a) of sub-section (5), in thecase of an Indian registered aircraft, inany country or, in the case of any otheraircraft, in India, shall report the fact of,and the reasons for, that disembarkationto —

(i) the appropriate authority in thecountry of disembarkation; and

(ii) the appropriate diplomatic orconsular officer of the country ofnationality of that person;

(b) if he intends to deliver any person inpursuance of clause (b) of sub-section(5) in India; or in the case of an Indiaregistered aircraft, in any other country,which is a Convention country, shallbefore or as soon as reasonablypracticable after landing give notificationof his intention and of the reasonstherefore —

(i) to the appropriate authority; and

(ii) in either case, to the appropriatediplomatic or consular officer ofthe country of nationality of thatperson;

and any commander of an aircraft whowithout reasonable cause fails to complywith the requirements of this sub-sectionshall be liable on summary conviction toa fine not exceeding one thousand rupees.

6. Jurisdiction — (1) For the avoidance ofdoubt it is hereby declared that for the purposeof any proceedings before a court in India, anycourt having jurisdiction in respect of piracycommitted on the high seas shall havejurisdiction in respect of offences and otheracts committed on board an aircraft as describedin this Act wherever that offence or act iscommitted.

125


(2) For the purposes of conferringjurisdiction, an offence under any law in forcein India, committed on board an aircraft inflight shall be deemed to have been committedin any place in India where the offender may forthe time being be.

7. Provisions as to evidence in connectionwith aircraft — (1) Where in any proceedingsbefore a court in India for an offence or otheract committed on board an aircraft the testimonyof any person is required and the court issatisfied that the person in question cannot befound in India, there shall be admissible inevidence before that court any depositionrelating to the subject matter of thoseproceedings previously made on oath by thatperson outside India which was so made —

(a) in the presence of the person chargedwith the offence; and

(b) before a judge or a magistrate of acountry such as is mentioned in the FirstSchedule to the Citizenship Act, 1955(57 of 1955), or before a consular officerof the Central Government.

(2) Any such deposition shall be authenticatedby the signature of the judge, magistrate orconsular officer before whom it was made andhe shall certify that the person charged with theoffence was present at the taking of thedeposition.

(3) It shall not be necessary in anyproceedings to prove the signature or officialcharacter of the person appearing so to haveauthenticated any such deposition or to havegiven such a certificate, and such a certificateshall, unless the contrary is proved, be sufficient

evidence in any proceedings that the personcharged with the offence was present at themaking of the deposition.

(4) If a complaint is made to such a consularofficer as aforesaid that any offence has beencommitted on an Indian registered aircraft whilein flight elsewhere than in or over India, thatofficer may enquire into the case upon oath.

(5) In this section —

(a) the expression “deposition” includes anaffidavit affirmation or statement madeupon oath; and

(b) the expression “oath” includes anaffirmation or declaration in the case ofpersons allowed by law to affirm ordeclare instead of swearing;

and nothing contained in this section shallprejudice the admission as evidence of anydeposition which is admissible in evidenceapart from this section.

8. Provisions as to documentaryevidence— (1) In any legal proceedings underthis Act, a document published by the Ministryof the Central Government dealing with CivilAviation and purporting to be the publicationknown as “Aeronautical InformationPublication” or a publication of the series knownas “Notam” and “ Aeronautical InformationCircular” shall be evidence of the mattersappearing from that document.

(2) Any message or signal transmitted to orreceived from an aircraft which relates to theposition of the aircraft will be treated as evidenceof certain records and shall apply to any legalproceedings.

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CHAPTER IV

MISCELLANEOUS

9. Power to apply the provisions of Actwith modifications to certain aircraft —The Central Government may, by notificationin the Official Gazette, direct that all or any ofthe provisions of this Act shall apply to anaircraft referred to in sub-clause (B) of clause(e) of sub-section (1) of section 2, subject tosuch modifications as may be specified in thenotification.

10. Contracting Parties to Convention—The Central Government may, by notificationin the Official Gazette, certify as to who are thecontracting parties to the Tokyo Convention

and to what extent they have availed themselvesof the provisions of the Convention, and anysuch notification by the Central Governmentshall be conclusive evidence of the matterscertified therein.

11. Power to treat certain aircraft to beregistered in Convention country — If theCentral Government is satisfied that therequirements of Article 18 of the TokyoConvention have been satisfied in relation toany aircraft, it may, by notification in the OfficialGazette, direct that such aircraft shall, for thepurposes of this Act, be treated as registered insuch Convention country as may be specified inthe notification.

127


CHAPTER IX

THE ANTI-HIJACKING ACT, 1982

(65 of 1982)

128

CHAPTER IX


TABLE OF CONTENTS

SECTIONS PAGES

CHAPTER I

PRELIMINARY

1. Short titles, extent, application and commencement . . . . 130

2. Definitions . . . . . . . . . . 130

CHAPTER II

HIGH JACKING AND CONNECTED OFFENCES

3. High Jacking . . . . . . . . . 130

4. Punishment for High Jacking . . . . . . 131

5. Punishment for acts of violence connected with Highjacking. . . . 131

5A. Conferment of powers of investigation, etc. . . . . . 131

6. Jurisdiction . . . . . . . . . . 131

6A. Designated Court . . . . . . . . 131

6B. Offences triable by Designated Courts . . . . . . . 132

6C. Application of Code to proceedings before a Designated Court. . . . 132

CHAPTER III

MISCELLANEOUS

7. Provisions as to extradition . . . . . . . 132

7A. Provision as to bail . . . . . . . 133

8. Contracting parties to convention . . . . . . . 133

9. Power to treat certain aircraft to be registered in convention countries . . 133

10. Previous sanction necessary for prosecution . . . . . 133

10A. Presumptions as to offences under sections 4 and 5 . . . . . 133

11. Protection of actions taken in goods faith . . . . . . 134

129

THE ANTI-HIJACKING ACT, 1982 CHAP. IX

An Act to give effect to the Convention forthe Suppression of Unlawful seizure of Aircraftand for matters connected therewith.

WHEREAS a Convention for the Suppressionof Unlawful Seizure of Aircraft was, on the16th day of December, 1970, signed at TheHague;

AND WHEREAS it is expedient that Indiashould accede to the said Convention and makeprevisions for giving effect thereto and formatters connected therewith;

BE it enacted by Parliament in the Thirty-third Year of the Republic of India as follows:-

CHAPTER I

PRELIMINARY

1. Short title, extent, application andcommencement — (1) The Act may be calledthe Anti—Hijacking Act, 1982.

(2) It extends to the whole of India and, saveas otherwise provided in this Act, it applies alsoto any offence thereunder committed outsideIndia by any person.


2. Definitions — In this Act, unless thecontext otherwise requires, —

(a) “aircraft” means any aircraft, whether ornot registered in India, other than a

military aircraft or an aircraft used incustoms or police service;

(b) “aircraft registered in India” means anaircraft which is for the time beingregistered in India;

(c) “Convention country” means a countryin which The Hague Convention is forthe time being in force;

(d) “Hague Convention” means theConvention for the Suppression ofUnlawful Seizure of Aircraft signed atThe Hague on the 16th day of December,1970;

(e) “military aircraft” means an aircraft ofthe naval, military, air force or any otherarmed forces of any country and includesevery aircraft commanded for the timebeing by a person in any such forcedetailed for the purpose.

CHAPTER II

HIJACKING AND CONNECTEDOFFENCES

3. Hijacking — (1) Whoever on board anaircraft in flight, unlawfully, by force or threatof force or by any other form of intimidation,seizes or exercises control of that aircraft,commits the offence of hijacking of suchaircraft.

(2) Whoever attempts to commit any of theacts referred to in sub-section (1) in relation to

130


CHAPTER IX


(65 OF 1982)

(November 6, 1982)

any aircraft, or abets the commission of anysuch act, shall also be deemed to have committedthe offence of hijacking of such aircraft.

(3) For the purposes of this section, anaircraft shall be deemed to be in flight at anytime from the moment when all its externaldoors are closed following embarkation untilthe moment when any such door is opened fordisembarkation, and in the case of a forcedlanding, the flight shall be deemed to continueuntil the competent authorities of the countryin which such forced landing takes place takeover the responsibility for the aircraft and forpersons and property on board.

4. Punishment for hijacking — Whoevercommits the offence of hijacking shall bepunished with imprisonment for life and shallalso be liable to fine.

5. Punishment for acts of violenceconnected with hijacking — Whoever, beinga person committing the offence of hijackingof an aircraft, commits, in connection withsuch offence, any act of violence against anypassenger or member of the crew of suchaircraft, shall be punished with the samepunishment with which he would have beenpunishable under any law for the time being inforce in India if such act had been committed inIndia.

* 5A. Conferment of powers ofinvestigation, etc.— (1) Notwithstandinganything contained in the Code of CriminalProcedure, 1973, for the purposes of this Act,the Central Government may, by notification inthe Official Gazette, confer on any officer ofthe Central Government, powers of arrest,

investigation and prosecution exercisable by apolice office under the Code of CriminalProcedure, 1973.

(2) All officers of police and all officers ofGovernment are hereby required and empoweredto assist the officer of the Central Governmentreferred to in sub-section (1), in the executionof the provisions of this Act,”.

6. Jurisdiction — (1) Subject to theprovisions of sub-section (2), where an offenceunder section 4 or section 5 is committedoutside India, the person committing suchoffence may be dealt with in respect thereof asif such offence had been committed at anyplace within India at which he may be found.

(2) No court shall take cognizance of anoffence punishable under section 4 or section5 which is committed outside India unless —

(a) such offence is committed on board anaircraft registered in India;

(b) such offence is committed on board anaircraft which is for the time being leasedwithout crew to a lessee who has hisprincipal place of business or where hehas no such place of business, hispermanent residence in India; or

(c) the alleged offender is a citizen of Indiaor is on board the aircraft in relation towhich such offence is committed whenit lands in India or is found in India.

*6A. Designated Courts — (1) For thepurpose of providing for speedy trial, the StateGovernment shall, with the concurrence of theChief Justice of the High Court, by notificationin the Official Gazette, specify a Court of

131


Session to be a Designated Court for such areaor areas as may be specified in the notification.

(2) Notwithstanding anything contained inthe Code of Criminal Procedure, 1973, aDesignated Court shall, as far as practicable,hold the trial on a day-to-day basis.

*6B. Offences triable by DesignatedCourts — (1) Notwithstanding anythingcontained in the Code of Criminal Procedure,1973,

(a) all offences under this Act shall be triableonly by the Designated Court specifiedunder sub-section (1) of section 6A ;

(b) where a person accused of or suspectedof the commission of an offence underthis Act is forwarded to a Magistrateunder sub-section (2) or sub-section (2A)of section 167 of the Code of CriminalProcedure, 1973, such Magistrate mayauthorise the detention of such personin such custody as he thinks fit for aperiod not exceeding fifteen days in thewhole where such Magistrate is a JudicialMagistrate and seven days in the wholewhere such Magistrate is an ExecutiveMagistrate:

Provided that where such Magistrateconsiders, —

(i) when such person is forwarded tohim as aforesaid ; or

(ii) upon or at any time before the expiryof the period of detentionauthorised by him,

that the detention of such person inunnecessary, he shall order such person

to be forwarded to the Designated Courthaving jurisdiction;

(c) the Designated Court may exercise, inrelation to the person forwarded to itunder clause (b), the same power whicha Magistrate having jurisdiction to try acase may exercise under section 167 ofthe Code of Criminal Procedure, 1973,in relation to an accused person in suchcase who has been forwarded to himunder that section;

(d) a Designated Court may, upon a perusalof a complaint made by an officer of theCentral Government or the StateGovernment as the case may beauthorised in this behalf take cognizanceof that offence without the accused beingcommitted to it for trial.

(2) When trying an offence under this Act, aDesignated Court may also try an offence otherthan an offence under this Act, with which theaccused may, under the Code of CriminalProcedure, 1973, be charged at the same trial.

*6C. Application of Code to proceedingsbefore a Designated Court — Save asotherwise provided in this Act, the provisionsof the Code of Criminal Procedure, 1973, shallapply to the proceedings before a DesignatedCourt and the person conducting a prosecutionbefore a Designated Court shall be deemed tobe a Public Prosecutor.

CHAPTER III

MISCELLANEOUS

7. provisions as to extradition — (1) Theoffences under section 4 and section 5 shall bedeemed to have been included as extraditable

132


offences and provided for in all the extraditiontreaties made by India with Convention countriesand which extend to, and are binding on, India onthe date of commencement of this Act.

(2) For the purpose of the application of theEx-tradition Act, 1962 (34 of 1962) theoffences under this Act, any aircraft registeredin a Convention country shall, at any time whilethat aircraft is in flight, be deemed to be withinthe jurisdiction of that country, whether or notit is for the time being also within the jurisdictionof any other country.

* 7A. Provision as to bail — (1)Notwithstanding anything in the Code ofCriminal Procedure, 1973, no person accusedof an offence punishable under this Act shall, ifin custody, be released on bail or on his ownbond unless —

(a) the Public Prosecutor has been given anopportunity to oppose the applicationfor such release; and

(b) where the Public Prosecutor opposesthe application, the Court is satisfiedthat there are reasonable grounds forbelieving that he is not guilty of suchoffence and that he is not likely to commitany offence while on bail.

(2) The limitations on granting of bail isspecified in sub-section (1) are in addition tothe limitations under the Code of CriminalProcedure, 1973, or any other law for the timebeing in force on granting of bail.

(3) Nothing contained in this section shallbe deemed to affect the special powers of theHigh Court regarding bail under section 439 ofthe Code of Criminal procedure, 1973.

8. Contracting parties to Convention —The Central Government may, by notificationin the Official Gazette, certify as to who are thecontracting parties to The Hague Conventionand to what extent they have availed themselvesof the provisions of the Convention, and anysuch notification shall be conclusive evidenceof the matters certified therein.

9. Power to treat certain air-craft to beregistered in Convention countries — If theCentral Government is satisfied that therequirements of Article 5 of The HagueConvention have been satisfied in relation toany aircraft, it may, by notification in the OfficialGazette, direct that such aircraft shall, for thepurposes of this Act, be treated as registered insuch Convention country as may be specified inthe notification.

10. Previous sanction necessary forprosecution — No prosecution for an offenceunder this Act shall be instituted except withthe previous sanction of the Central Government.

*10A. Presumptions as to offences undersections 4 and 5 — In a prosecution for anoffence under section 4 or section 5 if it isproved —

(a) that the arms, ammunition or explosiveswere recovered from the possession ofthe accused and there is reason to believethat such arms, ammunition or explosivesof similar nature were used in thecommission of such offence; or

(b) that there is evidence of use of force,threat of force or any other form ofintimidation caused to the crew orpassengers in connection with thecommission of such offence,

133


134


the Designated Court shall presume, unlessthe contrary is proved, that the accused hadcommitted such offence.”.

11. Protection of action taken in goodfaith — (1) No suit, prosecution or other legalproceeding shall lie against any person foranything which is in good faith done or intended

to be done in pursuance of the provisions ofthis Act.

(2) No suit or other legal proceedingsshall lie against the Central Government forany damage caused or likely to be caused foranything which is in good faith done or intendedto be done in pursuance of the provisions ofthis Act.

* Inserted vide Anti-Hijacking (Amendment) Act, 1994. (39 of 1994)

CHAPTER X

THE SUPPRESSION OF UNLAWFUL ACTSAGAINST SAFETY OF CIVIL AVIATION ACT, 1982

(66 OF 1982)

135

CHAPTER X


TABLE OF CONTENTS

SECTIONS PAGES

CHAPTER I

PRELIMINARY

1. Short title, extent, application and commencement. . . . . 137

2. Definitions . . . . . . . . . 137

CHAPTER II

OFFENCES

3. Offence of committing violence on board an aircraft in flight, etc.. . . . 138

3A. Offence at airport . . . . . . . . . 138

4. Destruction of, or damage to, air navigation facilities . . . . . 139

5. Jurisdiction . . . . . . . . . 139

5A. Conferment of powers of investigation, etc. . . . . . . 139

5B. Designated Courts . . . . . . . . . 139

5C. Offences triable by Designated Courts . . . . . . . 139

5D. Application of the Code to proceedings before a Designated Court. . . . 140

CHAPTER III

MISCELLANEOUS

6. Provisions as to extradition . . . . . . . . 140

6A. Provision as to bail . . . . . . . . . 140

7. Contracting parties to Convention. . . . . . . . 141

8. Power to treat certain aircraft to be registered in Convention countries . . . 141

9. Previous sanction necessary for prosecution . . . . . . 141

9A. Presumptions as to offences under sections 3, 3A and 4. . . . . 141

10. Protection of action taken in good faith . . . . . . . 141

136

THE SUPPRESSION OF UNLAWFUL ACTS AGAINST SAFETY OF CIVIL AVIATION ACT, 1982 CHAP. X

An Act to give effect to the Convention forthe Suppression of Unlawful Acts against theSafety of Civil Aviation and for mattersconnected therewith.

WHEREAS a Convention for theSuppression of Unlawful Acts against the Safetyof Civil Aviation was, on the 23rd day ofSeptember, 1971, signed at Montreal;

AND WHEREAS it is expedient that Indiashould accede to the said Convention and makeprovisions for giving effect thereto and formatters connected therewith;

BE it enacted by Parliament in the Thirty-third Year of the Republic of India as follows:-

CHAPTER I

PRELIMINARY

1. Short title, extent, application andcommencement — (1) This Act may be calledthe suppression of Unlawful Acts against Safetyof Civil Aviation Act, 1982.

(2) It extends to the whole of India and, saveas otherwise provided in this Act, it appliesalso to any offence under section 3 committedoutside India by any person.


2. Definitions — (1) In this Act, unless thecontext otherwise requires, —

(a) “aircraft” means any aircraft, whether ornot registered in India, other than amilitary aircraft or an aircraft used incustoms or police service;

(b) “aircraft registered in India” means anaircraft which is for the time beingregistered in India;

(bb) “airport “ means an aerodrome as definedin clause (2) of section 2 of the AircraftAct, 1934.

(c) “Convention country” means a countryin which the Montreal Convention is forthe time being in force;

(d) “military aircraft” means an aircraft ofthe naval, military, air force or any otherarmed forces of any country and includesevery aircraft commanded for the timebeing by a person in such force detailedfor the purpose;

(e) “Montreal Convention” means theConvention for the Suppression ofUnlawful Acts against the Safety of CivilAviation signed at Montreal on the 23rdday of September, 1971.

(2) For the purposes of this Act, —

(a) an aircraft shall be deemed to be in flightat any time from the moment when all its

CHAPTER X


(66 of 1982)

137


external doors are closed followingembarkation until the moment when anysuch door is opened for disembarkation,and in the case of a forced landing, theflight shall be deemed to continue untilthe competent authorities of the countryin which such forced landing takes placetake over the responsibility for theaircraft and for persons and property onboard;

(b) an aircraft shall be deemed to be in servicefrom the beginning of the pre-flightpreparation of the aircraft by the groundstaff or by the crew for a specific flightuntil twenty-four hours after any landingand the period of such service shallinclude the entire period during whichthe aircraft is in flight.

CHAPTER II

OFFENCES

3. Offence of committing violence onboard an aircraft in flight, etc. — (1) Whoeverunlawfully and intentionally —

(a) commits an act of violence against aperson on board an aircraft in flight whichis likely to endanger the safety of suchaircraft; or

(b) destroys an aircraft in service or causesdamage to such aircraft in such a manneras to render it incapable of flight orwhich is likely to endanger its safety inflight; or

(c) places or causes to be placed on anaircraft in service, by any meanswhatsoever, a device or substance which

is likely to destroy that aircraft, or tocause damage to it which renders itincapable of flight, or to cause damageto it which is likely to endanger its safetyin flight; or

(d) communicates such information whichhe knows to be false so as to endangerthe safety of an aircraft in flight,

shall be punished with imprisonment forlife and shall also be liable to fine.

(2) Whoever attempts to commit, or abetsthe commission of, and offence under sub-section (1) shall also be deemed to havecommitted such offence and shall be punishedwith the punishment provided for such offence.

*3A. Offence at airport — (1) Whoever, atany airport unlawfully and intentionally, usingany device, substance or weapon, —

(a) commits an act of violence which islikely to cause grievous hurt or death ofany person; or

(b) destroys or seriously damages anyaircraft or facility at an airport or disruptsany service at the airport, endangeringor threatening to endanger safety at thatairport, shall be punished withimprisonment for life and shall also beliable to fine.

(2) Whoever attempts to commit, or abetsthe commission of, any offence under sub-section (1) shall also be deemed to havecommitted such offence and shall be punishedwith the punishment provided for such offence.

138


4. Destruction of, or damage to, airnavigation facilities — (1) Whoeverunlawfully and intentionally destroys or damagesair navigation facilities or interferes with theiroperation in such a manner as is likely toendanger the safety of the aircraft in flight shallbe punished with imprisonment for life andshall also be liable to fine.

(2) Whoever attempts to commit, or abetsthe commission of, any offence under sub-section (1) shall also be deemed to havecommitted such offence and shall be punishedwith the punishment provided for such offence.

5. Jurisdiction — (1) Subject to theprovisions of sub-section (2), where an offenceunder section 3 is committed outside India, theperson committing such offence may be dealtwith in respect thereof as if such offence hadbeen committed at any place within India atwhich he may be found.

(2) No court shall take cognizance of anoffence punishable under section 3 which iscommitted outside India unless —

(a) such offence is committed on board anaircraft registered in India;

(b) such offence is committed on board anaircraft which is for the time being leasedwithout crew to a lessee who has hisprincipal place of business, or where hehas no such place of business, hispermanent residence in India; or

(c) the alleged offender is a citizen of Indiaor is on board the aircraft in relation towhich such offence is committed whenit lands in India or is found in India.

*5A. Conferment of powers ofinvestigation, etc.— (1) Notwithstandinganything contained in the Code of CriminalProcedure, 1973, for the purposes of this Act,the Central Government may, by notification inthe Official Gazette, confer on any officer ofthe Central Government, powers of arrest,investigation and prosecution exercisable by apolice officer under the Code of CriminalProcedure, 1973.

(2) All officers of police and all officers ofGovernment are hereby required and empoweredto assist the officer of the Central Governmentreferred to in sub-section (1), in the executionof the provisions of this Act.

*5B. Designated Courts — (1) For thepurpose of providing for speedy trial, the StateGovernment shall, with the concurrence of theChief Justice of the High Court, by notificationin the Official Gazette, specify a Court ofSession to be a Designated Court for such areaor areas as may be specified in the notification.

(2) Notwithstanding anything contained inthe Code of Criminal Procedure, 1973, aDesignated Court shall, as far as practicable,hold the trial on a day-to-day basis.

*5C. Offences triable by DesignatedCourts — (1) Notwithstanding anythingcontained in the Code of Criminal Procedure,1973,

(a) all offences under this Act shall be triableonly by the Designated Court specifiedunder sub-section (1) of section 5B.

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140


(b) where a person accused of or suspectedof the commission of an offence underthis Act is forwarded to a Magistrateunder sub-section (2) or sub-section (2A)of section 167 of the Code of CriminalProcedure, 1973, such Magistrate mayauthorise the detention of such personin such custody as he thinks fit for aperiod not exceeding fifteen days in thewhole where such Magistrate is a JudicialMagistrate and seven days in the wholewhere such Magistrate is an ExecutiveMagistrate:

Provided that where such Magistrateconsiders,—

(i) when such person is forwarded tohim as aforesaid; or

(ii) upon or at any time before the expiryof the period of detentionauthorised by him,

that the detention of such person isunnecessary, he shall order such personto be forwarded to the Designated Courthaving jurisdiction;

(c) the Designated Court may exercise, inrelation to the person forwarded to itunder clause (b), the same power whicha Magistrate having jurisdiction to try acase may exercise under section 167 ofthe Code of Criminal Procedure, 1973,in relation to an accused person in suchcase who has been forwarded to himunder that section;

(d) a Designated Court may, upon a perusalof a complaint made by an officer of theCentral Government or the StateGovernment, as the case may be,

authorised in this behalf, take cognizanceof that offence without the accused beingcommitted to it for trial.

(2) When trying an offence under this Act, aDesignated Court may also try an offence otherthan an offence under this Act, with which theaccused may, under the Code of CriminalProcedure, 1973, be charged at the same trial.

*5D. Application of the Code toproceedings before a Designated Court —Save as otherwise provided in this Act, theprovisions of the Code of Criminal Procedure,1973, shall apply to the proceedings before aDesignated Court and the person conducting aprosecution before a Designated Court shall bedeemed to be a Public Prosecutor.

CHAPTER III

MISCELLANEOUS

6. Provisions as to extradition — (1) Theoffences under section 3 and section 4 shall bedeemed to have been included as extraditableoffences and provided for in all the extraditiontreaties made by India with Convention countriesand which extend to, and are binding on, India onthe date of commencement of this Act.

(2) For the purposes of the application ofthe Extradition Act, 1962 (34 of 1962) tooffences under this Act, any aircraft registeredin a Convention country shall, at any time whilethat aircraft is in flight, be deemed to be withinthe jurisdiction of that country, whether or notit is for the time being also within the jurisdictionof any other country.

*6A. Provision as to bail — (1)Notwithstanding anything contained in the Codeof Criminal Procedure, 1973, no person accusedof an offence punishable under this Act shall, if

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* The Suppression of Unlawful Acts against Safety of Civil Aviation (Amendment) Act, 1994 (40 of 1994)

in custody, be released on bail or on his ownbond unless —

(a) the Public Prosecutor has been given anopportunity to oppose the applicationfor such release ; and

(b) where the Public Prosecutor opposesthe application, the court is satisfiedthat there are reasonable grounds forbelieving that he is not guilty of suchoffence and that he is not likely to commitany offence while on bail.

(2) The limitations on granting of bail speci-fied in sub-section (1) are in addition to thelimitations under the Code of Criminal Proce-dure, 1973 or any other law for the time beingin force on granting of bail.

(3) Nothing contained in this section shallbe deemed to affect the special powers of theHigh Court regarding bail under section 439 ofthe Code of Criminal Procedure, 1973.

7. Contracting parties to Convention—The Central Government may, by notificationin the Official Gazette, certify as to who are thecontracting parties to the Montreal Conventionand to what extent they have availed themselvesof the provisions of the Convention, and anysuch notification shall be conclusive evidenceof the matters certified therein.

8. Power to treat certain aircraft to beregistered in Convention countries — If theCentral Government is satisfied that therequirements of Article 9 of the MontrealConvention have been satisfied in relation toany aircraft, it may, by notification in the OfficialGazette, direct that such aircraft shall, for the

purposes of this Act, be treated as registered insuch Convention country as may be specifiedin the notification.

9. Previous sanction necessary forprosecution — No prosecution for an offenceunder this Act shall be instituted except withthe previous sanction of the Central Government.

*9A. Presumptions as to offences undersections 3, 3A and 4 — In a prosecution for anoffence under sections 3, 3A and 4 if it isproved

(a) that the arms, ammunition or explosiveswere recovered from the possession ofthe accused and there is reason to believethat such arms ammunition or explosivesof similar nature were used in thecommission of such offence; or

(b) that there is evidence of violencecommitted by the accused against anyperson in connection with thecommission of such offence,

the Designated Court shall presume, unless thecontrary is proved, that the accused had com-mitted such offence.

10. Protection of action taken in goodfaith — (1) No suit, prosecution or other legalproceeding shall lie against any person foranything which is in good faith done or intendedto be done in pursuance of the provisions of thisAct.

(2) No suit or other legal proceeding shalllie against the Central Government for anydamage caused or likely to be caused for anythingwhich is in good faith done or intended to bedone in pursuance of the provisions of this Act.

CHAPTER XI

NOTIFICATION REGARDING APPLICATION OFTHE CARRIAGE BY AIR ACT, 1972, TO CARRIAGE

BY AIR WHICH IS NOT INTERNATIONAL

142

143

NOTIFICATION REGARDING APPLICATION OF THE CARRIAGE BY AIR ACT, 1972, TO CARRIAGE BY AIR WHICH IS NOT INTERNATIONAL CHAP. XI

CHAPTER XI

NOTIFICATION REGARDING APPLICATION OF THECARRIAGE BY AIR ACT, 1972, TO CARRIAGE BY

AIR WHICH IS NOT INTERNATIONAL

(M ARCH 30, 1973)

Ministry of Tourism and Civil Aviation

S.O. 186(E).— In exercise of the powersconferred by sub-section (2) of section 8 of theCarriage by Air Act 1972 (69 of 1972) and insupersession of the notification of theGovernment of India in the late Ministry ofTransport (Civil Aviation Wing), No. G.S.R.1967, dated the 17th December, 1963, exceptas respects things done or omitted to be done,the Central Government hereby directs thatwith effect from the 1st April 1973, section 4,section 5 and section 6 of that Act and the rulescontained in the Second Schedule to that Actshall apply to all carriage by air not beinginternational carriage by air as defined in thesaid Second Schedule, irrespective of thenationality of the aircraft performing thecarriage, subject to the following exceptions,adaptations and modifications, namely:—

1. In the said Act, —

in section 4,—

(i) sub-section (1), (2) and (3) shall beomitted;

(ii) in sub-section (4) after the words‘Second Schedule’ the words “asapplicable to carriage by Air, not beinginternational carriage by air’ shall beinserted;

2. in section 5,—

(i) in sub-section (1) for the words ‘on theFirst Schedule and the Second Schedule’,the words “in the Second Schedule asapplicable to carriage by air not beinginternational carriage by air”, shall besubsituted;

(ii) in sub-section (5) for the portionbeginning with the words ‘of the FirstSchedule’ and ending with the words‘passenger in question’, the words “ofthe Second Schedule as applicable tocarriage by air, not being internationalcarriage by air’ shall be substituted;

3. section 6 shall be omitted;

4. in the Second Schedule,

(a) for the brackets, words and figure ‘(Seesection 4), occurring below the heading‘Second Schedule’ the brackets and words“(As applicable to carriage by air, notbeing international carriage)” shall besubstituted;

(b) the word “Definitions” forming part ofthe heading of Chapter I shall be omitted;

(c) in rule 1,—

(i) in sub-rule (1) the word“international” shall be omitted;

(ii) sub-rule (2) shall be omitted;

(iii) for sub-rule (3) the following sub-rule shall be substituted, namely:-

144


“(3) For the purposes of these rules,‘carriage by air, not being inter-national carriage’ means any car-riage in which according to theagreement of the parties, theplace of departure and destina-tion are both situated in Indiaand there is no agreed stoppingplace outside India.”

(iv) in sub-rule (4), the portion beginningwith the words ‘whether it had beenagreed’ and ending with words‘within the territory of the sameState’ shall be omitted;

(d) for rule 2, the following rule shall besubstituted, namely :—

“2.These rules shall not apply—

(i) to carriage by air in any aircraftbelonging to, or exclusivelyemployed for the purposes ofthe armed forces of the Union;

(ii) to carriage by air, performed bythe Government, whether Cen-tral or State;

(iii) to carriage of mails;

(iv) to carriage by air of persons per-formed for the purpose of train-ing of such persons;

(v) to carriage by aircraft belong-ing to or operated by the CivilAviation Training Centre of theGovernment of India or a Club,whose main purpose is to im-part training in flying or glid-ing, whether such aircraft is en-gaged in carrying persons forthe purposes of training or oth-erwise;

(vi) to carriage of cargo or personsperformed for the purpose ofdropping goods from an aircraft;

(vii) to carriage of employees of thecarrier when they are carried forthe purpose of performing anyduties assigned to them by thecarrier on the aircraft.”

(e) in Chapter II, parts I and II containingrules 3 and 4 shall be omitted.

(f) in rule 5,—

(i) for sub-rule (1), the following sub-rule shall be substituted, namely:—

“(1) Every carrier of cargo has rightto require the consignor tomake out and hand over to himan air-way-bill”;

(ii) in sub-rule (2), the word“irregularity” and the words ‘subjectto provisions of rule 9’ shall beomitted;

(g) rules 6.8 and 9 shall be omitted;

(h) in rule 10,—

(i) in sub-rule (1), after the words ‘Air-way-bill’ the words “if any” shall beinserted;

(ii) in sub-rule (2), the word‘irregularity’ shall be omitted.

(i) in rule 11,—

(i) in sub-rule (2), after the word ‘air-way-bill’ the words “if any” shall beinserted;

(ii) for sub-rule (2), the following sub-rule shall be subsituted, namely:—

“(2) Any statements in the air-way-bill relating to the weight, di-mensions and packing of thecargo or relating to number ofpackages, are prima facie evi-dence of the facts stated; anysuch statements relating to thequantity, volume and condition

145


of the cargo do not constituteevidence against the carrier ex-cept so far as they both havebeen and are stated in the air-way-bill to have been checkedby him in the presence of theconsignor, or relate to the ap-parent condition of the cargo”;

(j) in rule 12,—

(i) in sub-rule (1) for the words‘consignee named in the air-way-bill’ the words “original consignee”shall be substituted;

(ii) sub-rule (3) shall be omitted;

(iii) in sub-rule (4), for the words, “thewaybill” the words, “air-way-bill, ifany” shall be inserted;

(k) in rule 13 in sub-rule (1) for the words‘to hand over to him in the air-way-billand to deliver the cargo to him, onpayment of the charges due and oncomplying with the conditions ofcarriage set out in the air-way-bill’, thewords “to deliver the cargo to him, onpayment of the charges and on complyingwith the conditions of the contract ofcarriage”, shall be substituted;

(l) in rule 15,—

(i) for sub-rule (2) the following sub-rule shall be substituted, namely :—

“The provisions of rules 12,13and 14 can only be varied byexpress provisions in the air-way-bill or by written agreementbetween the parties to that ef-fect.”

(ii) in sub-rule (3) after the words‘negotiable air-way-bill’ the words“if any” shall be inserted.

(m) in rule 16, in sub-rule (1) for the words

‘attach to the air-way-bill suchdocuments as are necessary to meet theformalities of customs’, the words“documents as are necessary to meet theformalities of customs, excise” shall besubstituted;

(n) for rule 19, the following rule shall besubstituted, namely :—

“19. In the absence of a contract tothe contrary the carrier is not to beliable for damage occasioned bydelay in the carriage by air ofpassengers, baggage or cargo.”

(o) for rule 20, the following rule shall beconstituted, namely :—

“20. In the carriage of baggage andcargo the carrier is not liable if heproves that the damage wasoccasioned by negligent pilotage ornegligence in the handling of theaircraft or in navigation and that, inall other repects, he and his agentshave taken all necessary measuresto avoid the damage or that it wasimpossible for him or them to takesuch measures.”

(p) in rule 22,—

(i) for sub-rule (1) the following sub-rules shall be substituted, namely:-

*“(1) In the event of death of a pas-senger, or any bodily injury orwound suffered by a passengerwhich results in a permanent dis-ablement incapacitating himfrom engaging in or being oc-cupied with his usual duties orbusiness or occupation, the li-ability of the carrier for eachpassenger shall be Rs.5,00,000,if the passenger is 12 or moreyears of age, and Rs.2,00,000,if the passenger is below 12

years of age on the date of theaccident. Provided that by spe-cial contract, the carrier and thepassenger may agree to a higherlimit of liability.

(1A) In the event of wounding of apassenger or any bodily injurysuffered by the passenger whichresults in a temporary disable-ment entirely preventing an in-jured passenger from attendingto his usual duties or businessor occupation, the liability ofthe carrier for each passengershall be limited to a sum calcu-lated at the rate of Rs.500 perday, the period during which thecontinues to be so disabled or asum of Rs.1,00,000, whicheveris less.”

* (S.O. 659 (E) dated 22nd August, 1989)

(ii) in clause (a) of sub-rule (2) for thefigures and words “250 francs” thewords “repees three hundred shallbe substituted;

(iii) in sub-rule (3) for the figures andwords “5,000 francs”, the words“rupees two thousand” shall besubstituted;

(iv) sub-rule (5) shall be omitted;

(q) in rule 23, in sub-rule (1) for the words“any provision in a contract of carriage”shall be substituted;

(r) in rule 27,—

(i) in sub-rule (1) for the word“document”, the word “contract”shall be substituted;

(ii) in sub-rule (3), for the words “inwriting upon the document ofcarriage or by separate” the word

“by” shall be substituted;

(s) rule 29 shall be omitted;

(t) in rule 32, in sub-rule (2) for the words“inserting in the document of aircarriage”, the words “agreeing to special”shall be substituted;

(u) for rule 33 the following rule shall besubstituted, namely :—

“33. Any clause contained in thecontract and any special agreemententered into before the damageoccurred by which the partiespurport to infringe the rules laiddown by this Schedule, shall be nulland void. Nevertheless, for thecarriage of cargo, arbitration clausesare allowed subject to these rules.

(v) in rule 34 for the word ‘regulations’ theword “stipulations” shall be substituted;

(w) rule 35 is omitted.

Note - The provisions of sections 4,5 and 6and the rules contained in the SecondSchedule as so excepted, adapted andmodified are for the convenience ofreference set out in the Annexure tothis notification.

ANNEXURE

(Sections 4, 5 and 6 Schedule II as excepted,adapted and modified)

4. (1) Omitted.

4. (2) Omitted.

4. (3) Omitted.

4. (4) Any reference in the Second Schedule,as applicale to carriage by air not beinginternational carriage by air, to agents of thecarrier shall be construed as including areference to servants of the carrier.

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5. (1) Notwithstanding anything containedin the Indian Fatal Accidents Act, 1855, or anyother enactment or rule of law in force in anypart of India, the rules contained in the SecondSchedule as applicable to the carriage by air,not being international carriage by air, shall, inall cases to which those rules apply, determinethe liability of a carrier in respect of the deathof a passenger.

(2) The liability shall be enforceable for thebenefit of such of the member of the passengers’family as sustained damage by reason of hisdeath.

Explanation.— In this sub-section theexpression ‘member of a family’ means wife orhusband, parent, step-parent, grand-parent,brother, sister, half-brother, half-sister, child,step-child and grand child :

Provided that in deducing any suchrelationship as aforesaid any illegitimate personand any adopted person shall be treated as being,or as having been, the legitimate child of hismother and reputed father or, as the case maybe, of his adopters.

(3) An action to enforce the liability may bebrought by the personal representative of thepassenger or by any person for whose benefitthe liability is under sub-section (2) enforceable,but only one action shall be brought in India inrespect of the death of any one passenger, andevery such action by whomsoever brought shallbe for the benefit of all such persons so entitledas aforesaid as either are domiciled in India ornot being domiciled there express a desire totake the benefit of the action.

(4) Subject to the provisions of sub-section(5), the amount recovered in any such action,

after deducting any costs not recovered fromthe defendant, shall be divided between thepersons entitled in such proportion as the Countmay direct.

(5) The Court before which any such actionis brought may, at any stage of the proceedings,make any such order as appears to the Court tobe just and equitable in view of the provisionsof the Second Schedule, as applicable to carriageby air, not being international carriage by air,limiting the liability of a carrier.

THE SECOND SCHEDULE

(As applicable to carriage by air notbeing international carriage)

RULES

CHAPTER I

SCOPE

1. (1) These rules apply to all carriage ofpersons, baggage or cargo performed by aircraftfor reward. They apply also to such carriagewhen performed gratuitously by an air transportundertaking.

(2) Omitted.

(3) For the purposes of these rules, ‘carriageby air not being international carriage’, meansany carriage in which according to the intentionof the parties, the place of departure and theplace of destination are both situated in Indiaand there is no agreed stopping place outsideIndia.

(4) Carriage to be performed by severalsuccessive air carriers is deemed, for thepurposes of these rules, to be one undividedcarriage, if it has been regarded by the parties asa single operation.

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2. These rules do not apply—

(i) to carriage by air in any aircraft belongingto, or exclusively employed for thepurposes of the armed forces of theUnion :

(ii) to carriage by air, performed by theGovernment, whether Central or State;

(iii) to carriage of mails;

(iv) to carriage by air of persons performedfor the purpose of training of suchpersons;

(v) to carriage by aircraft belonging to oroperated by the Civil Aviation TrainingCentre of the Government of India or aClub, whose main purpose is to impacttraining in flying or gliding, whethersuch aircraft is engaged in carryingpersons for the purposes of training orotherwise;

(vi) to carriage of cargo of personsperformed for the purpose of droppinggoods from an aircraft;

(vii) to carriage of employees of the carrierwhen they are carried for the purpose ofperforming any duties assigned to themby the carrier on the aircraft.

CHAPTER II

DOCUMENTS OF CARRIAGE

Parts I and II containing rules 3 and 4 omitted.

Part III— Air-way-bill

(5) (1) Every carrier of cargo has a right torequire the consignor to make out and hand overto him an air-way-bill.

(2) The absence or loss of this documentdoes not affect the existence or the validity of

the contract of carriage which shall benonetheless governed by these rules.

6. Omitted.

7. The carrier of cargo has the right torequire the consignor to make out separate air-way-bill when there is more than one package.

8. Omitted.

9. Omitted.

10. (1) The consignor is responsible for thecorrectness of the particulars an statementrelating to the Cargo which he inserts inn theair-way-bill, if any.

(2) The consignor shall indemnify the carrieragainst all damage suffered by him, or by anyother person to whom the carrier is liable byreason of incorrectness or incompleteness ofthe particulars and statements furnished by theconsignor.

11. (1) The air-way-bill, if any, is primafacie evidence of the conclusion of the contractof the receipt of the cargo and the conditions ofcarriage.

(2) Any statements in the air-way-billrelating to the weight, dimension and packingof the cargo or relating to a number of packages,are prima facie evidence of the facts stated; anysuch statements relating to the quantity, volumeand condition of the cargo do not constituteevidence against the carrier except so far asthey both have been, and are stated in the air-way-bill to have been checked by him in thepresence of the consignor, or relate to theapparent condition of the cargo.

12. (1) Subject to his liability to carry outall his obligations under the contract of carriage,the consignor has the right to dispose of thecargo by withdrawing it at the aerodrome of

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departure or destination, or by stopping it in thecourse of the journey on any landing or bycaling for it to be delivered at the place ofdestination or in the course of journey to aperson other than the original consignee or byrequiring it to be returned to the aerodrome ofdeparture. He must not exercise this right ofdisposition in such a way as to prejudice to thecarrier or other consignors and he must repayany expenses occasioned by the exercise ofthis right.

(2) If it is impossible to carry out the ordersof the consignor, the carrier must so informhim forthwith.

(3) Omitted.

(4) The right conferred on the consignorceases at the moment when that of the consigneebegins in accordance with rule 13. Nevertheless,if the consignee declines to accept the air-way-bill, if any, or the cargo, or if it cannot becommunicated with, the consignor resumes hisright of disposition.

13. (1) Except in the circumstances set outin the preceding rule, the consignee is entitledon arrival of the cargo at the place of destinationto require the carrier to deliver the cargo tohim, on payment of the charges due and oncomplying with the conditions of the contractof carriage.

(2) Unless it is otherwise agreed, it is theduty of the carrier to give notice to the consigneeas soon as the cargo arrives.

(3) If the carrier admits the loss of the cargo,or if the cargo has not arrived at the expirationof seven days after the date on which it ought tohave arrived, the consignee is entitled to putinto force against the carrier the rights whichflow from the contract of carriage.

14.The consignor and the consignee canrespectively enforce all the rights given to themby rules 12 and 13, each in his own name,whether he is acting in his own interest or in theinterest of another, provided that he carries outthe obligations imposed by the contract.

15. (1) Rules 12,13 and 14 do not affecteither the relations of the consignor or theconsignee with each other or the mutual relationsof third parties whose rights are derived eitherfrom the consignor or from the consignee.

(2) The provisions of rules 12,13 and 14 canonly be varied by express provisions in the air-way-bill or by written agreement between theparties to that effect.

(3) Nothing in these rules prevents the issueof a negotiable air-way-bill, if any.

16.The consignor must furnish suchinformation and documents as are necessary tomeet the formalities of customs, excise, octroior police before the cargo can be delivered tothe consignee. The consignor is liable to thecarrier for any damage occasioned by theabsence, insufficiency or irregularity of anysuch information or documents, unless thedamage is due to fault of the carrier or hisservants or agents.


CHAPTER III


17.The carrier is liable for damage sustainedin the event of the death or wounding of apassenger or any other bodily injury sufferedby a passenger, if the accident which caused the

149


damage so sustained took place on board theair-craft or in the course of any of the operationsof embarking or disembarking.

18. (1) The carrier is liable for damagesustained in the event of the destruction or lossof, or of damage to, any registered baggage orany cargo, if the occurrence which caused thedamage so sustained took place during thecarriage by air.

(2) The carrier by air within the meaning ofthe preceding sub-rule comprises the periodduring which the baggage or cargo is in chargeof the carrier, whether in an aerodrome or onboard an aircraft, or, in the case off a landingoutside an aerodrome, in any place whatsoever.

(3) The period of the carriage by air doesnot extend to any carriage by land, by sea or byriver performed outside an aerodrome. If,however, such a carriage takes place in theperformance of a contract for carriage by air,for the purpose f loading, delivery ortranshipment, any damage is presumed subjectto proof to the contrary, to have been the resultof an event which took place during the carriageby air.

19. In the absence of a contract to thecontrary, the carrier is not to be liable fordamage occasioned by delay in the carriage byair of passengers, baggage or cargo.

20. In the carriage of baggage and cargo thecarrier is not liable if he prove that the damagewas occasioned by negligent pilotage ornegligence in the handing of the aircraft or innavigation and that, in all other respects, he andhis agents have taken all necessary measures toavoid the damage or that is was impossible forhim or them to take such measures.

21. If the carrier proves that the damage wascaused by or contributed to by the negligence

of the injured person, the Court may, inaccordance with the provisions of its own law,exonerate the carrier wholly or partly from hisliability.

22. (Ia) In the event of death of a passenger,or any bodily injury or wound suffered by apassenger which results in a permanentdisablement incapacitating him from engagingin or being occupied with his usual duties orbusiness or occupation, the liability of the carrierfor each passenger shall be Rs. 7,50,000 if thepassenger is 12 or more years of age andRs. 3,75,000 if the passenger is below 12 years of age on the date of accident;

(Ib) Provided that by special contract, thecarrier and the passenger may agree to a higherlimit of liability.

(Ic) In the event of wounding of a passengeror any bodily injury suffered by the passengerwhich results in a temporary disablemententirely preventing an injured passenger fromattending to his usual business or occupation orduties, the liability of the carrier for eachpassenger shall be limited to a sum calculatedat the rate of Rs.500 per day, for every dayduring which he continues to be so disabled ora sum of Rs.1,00,000 whichever is less.

(2) (a) In the carriage of registered baggageand of cargo, the liability of the carrier islimited to a sum of rupees two hundred perkilogramme, unless the passenger or consignorhas made, at the time when the package washanded over to the carrier, a special declarationof interest in delivery at destination and haspaid a supplementary sum if the case so requires.In that case the carrier will be liable to pay sumnot exceeding the declared sum, unless he provesthat that sum is greater than the passenger’s orconsignor’s actual interest in delivery atdestination.

150


(2)(b) In the case of loss, damage or delayof part of registered baggage or cargo, or of anyobject contained therein, the weight to be takeninto consideration in determining the amountto which the carrier’s liability is limited shallbe only the total weight of the package orpackages concerned. nevertheless, when theloss, damage or delay of a part of the registeredbaggage or cargo, or of an object containedtherein, affects the value of other packagescovered by the same baggage check or the sameair-way-bill the total weight of such package orpackages shall also be taken into considerationin determining the limit of liability.

(3) As regards objects of which thepassenger takes charge himself the liability ofthe carrier is limited to rupees two thousandfive hundered per passenger.

(4) The limits prescribed in this rule shallnot prevent the Court from awarding, inaccordance with its own law, in addition, thewhole or part of the Court costs and of the otherexpenses of the litigation incurred by theplaintiff. The foregoing provision shall not applyif the amount of the damage awarded, excludingCourt costs and other expenses of the litigation,does not exceed the sum which the carrier hasoffered in writing to the plaintiff within a periodof six months from the date of the occurrencecausing the damage, or before thecommencement of the action, if that is latter.

(5) Omitted.

23. (1) Any provision in a contract of carriagetending to relieve the carrier of liability or tofix a lower limit than that which is laid down inthese rules shall be null void, but the nullity of

any such provision does not involve the nullityof the whole contract which shall remain subjectto the provisions of these rules.

(2) Sub-rule (1) of this rule shall not applyto provisions governing loss or damage resultingfrom the inherent defect, quality or vice of thecargo carried.

24. (1) In the cases covered by rules 18 and19 any action for damages, however, founded,can only be brought subject to the conditionsand limits set out in these rules.

(2) In the cases covered by rule 17 theprovisions of the preceding sub-rule also apply,without prejudice to the questions as to who arethe persons who have the right to bring suit andwhat are their respective rights.

25.The limits of liability specified in rule22 shall not apply if it is proved that the damageresulted from an act or omission of the carrier,his servants or agents, done with intent to causedamage or recklesly and with knowledge thatdamage would probably result; provided that, inthe case of such act or ommission of a servantor agent, it is also proved that he was actingwithin the scope of his employment.

26. (1) If action is brought against a servantor agent of the carrier arising out of damage towhich these rules relate, such servant or agent,if he proves that he acted within the scope of hisemployment, shall be entitled to avail himselfof the limits of liability which that carrierhimself is entitled to invoke under rule 22.

(2) The aggregate of the amounts recoverablefrom the carrier, his servants and agents in thatcase shall not exceed the said limits.

151


(3) The provision of sub-rules (1) and (2) ofthis rule shall not apply if it is proved that thedamage resulted from an act or omission of theservant or agent done with intent to cause damageor recklessly and with knowledge that damagewould probably result.

27. (1) Receipt by the person entitled todelivery of baggage or cargo without complaintis prima facia evidence that the same has beendelivered in good condition and in accordancewith the contract of carriage.

(2) In the case of damage, the person entitledto delivery must complain to the carrier forthwithafter the discovery of the damage, and at thelatest within seven days from the date of receiptin the case of baggage and fourteen days fromthe date of receipt in the case of cargo. In thecase of delay the complaint must be made at thelatest within twenty one days from the date onwhich the baggage or cargo have been placed athis disposal.

(3) Every complaint be made by notice inwriting despatched within the times aforesaid.

(4) Failing complaint within the timesaforesaid, no action shall lie against the carrier,save in the case of fraud on his part.

28. In the case of the death of the personliable an action for damages lies in accordancewith the terms of these rules against thoselegally representing his estate.

29.Omitted.

30. (1) The right to damages shall beextinguished if an action is not brought within

152


two years, reckoned from the date of arrival atthe destination, or from the date on which theair-craft ought to have arrived, or from, the dateof which the carriage stopped.

(2) The method of calculating the period oflimitation shall be determined by the law of thecount seized of the case.

31. (1) In the case of carriage to beperformed by various successive carriers andfalling within the definition set out in sub-rule(3) of rule 1, each carrier who acceptspassengers, baggage or cargo is subjected tothe rules set out in this Schedule, and is deemedto be one of the contracting parties to thecontract of the carriage in so far as the contractdeals with that part of the carriage which isperformed under his supervision.

(2) In the case of carriage of this nature, thepassenger or his representative can take actiononly against the carrier who performed thecarriage during which the accident or the delayoccurred, save in the case where, by expressagreement, the first carrier has assumed liabilityfor the whole journey.

(3) As regards baggage or cargo, thepassenger or consignor will have a right ofaction against the first carrier, and the passengeror consignee who is entitled to delivery willhave a right of action against the first carrier,and further, each may take action against thecarrier who performed the carriage during whichthe destruction, loss, damage or delay tookplace. These carriers will be jointly and severallyliable to the passenger or to the consignor orconsignee.

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CHAPTER IV


32. (1) In the case of combined carriageperformed partly by air and partly by any othermode of carriage, the provisions of this Scheduleapply only to the carriage by air, provided thatthe carriage by air, falls within the terms of rule1.

(2) Nothing in this Schedule shall preventthe parties in the case of combined carriagefrom agreeing to special conditions relating toother modes of carriage, provided that theprovisions of the Schedule are observed asregards the carriage by air.

CHAPTER V


33.Any clause contained in the contract andany special agreement entered into before thedamage occurred by which the parties purportto infringe the rules laid down by this Scheduleshall be null and void. Nevertheless, for thecarriage of cargo, arbitration clauses are allowedsubject to these rules.

34.Nothing contained in this Schedule shallprevent the carrier either from refusing to enterinto any contract of carriage, or from makingstipulations which do not conflict with theprovisions of this Schedule.

35.Omitted.

36.The expression “days” when used in theserules means current days, not working days.