{"id":1372,"date":"2024-10-23T18:56:17","date_gmt":"2024-10-23T18:56:17","guid":{"rendered":"https:\/\/fawyerz.in\/judgments\/?p=1372"},"modified":"2025-03-12T16:27:18","modified_gmt":"2025-03-12T10:57:18","slug":"r-d-shetty-v-the-international-airport-authority-of-india-and-ord-1979-case-summary","status":"publish","type":"post","link":"https:\/\/fawyerz.in\/judgments\/constitutional-law\/r-d-shetty-v-the-international-airport-authority-of-india-and-ord-1979-case-summary\/","title":{"rendered":"R. D. Shetty V. The International Airport Authority of India and Ord. (1979) (Case Summary)"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"1372\" class=\"elementor elementor-1372\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-20daef71 elementor-section-full_width elementor-section-height-default elementor-section-height-default wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no wpr-equal-height-no\" data-id=\"20daef71\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-3bfd0914\" data-id=\"3bfd0914\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-3fa5bbef elementor-section-boxed elementor-section-height-default elementor-section-height-default wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no wpr-equal-height-no\" data-id=\"3fa5bbef\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-58acbf02\" data-id=\"58acbf02\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-632552e7 elementor-widget elementor-widget-heading\" data-id=\"632552e7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h1 class=\"elementor-heading-title elementor-size-default\">Ramana Dayaram Shetty V. The International Airport Authority of India\n(Case Summary)<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1b919eca elementor-widget elementor-widget-image\" data-id=\"1b919eca\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"1280\" height=\"718\" src=\"https:\/\/fawyerz.in\/judgments\/wp-content\/uploads\/WhatsApp-Image-2024-10-23-at-22.00.19_472a418e.jpg\" class=\"attachment-1536x1536 size-1536x1536 wp-image-1373\" alt=\"Ramana Dayaram Shetty V. The International Airport Authority Of India And Ord. 1979 AIR 1628\" srcset=\"https:\/\/fawyerz.in\/judgments\/wp-content\/uploads\/WhatsApp-Image-2024-10-23-at-22.00.19_472a418e.jpg 1280w, https:\/\/fawyerz.in\/judgments\/wp-content\/uploads\/WhatsApp-Image-2024-10-23-at-22.00.19_472a418e-300x168.jpg 300w, https:\/\/fawyerz.in\/judgments\/wp-content\/uploads\/WhatsApp-Image-2024-10-23-at-22.00.19_472a418e-1024x574.jpg 1024w, https:\/\/fawyerz.in\/judgments\/wp-content\/uploads\/WhatsApp-Image-2024-10-23-at-22.00.19_472a418e-150x84.jpg 150w, https:\/\/fawyerz.in\/judgments\/wp-content\/uploads\/WhatsApp-Image-2024-10-23-at-22.00.19_472a418e-768x431.jpg 768w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" title=\"\">\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1de39075 elementor-widget elementor-widget-text-editor\" data-id=\"1de39075\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">In this landmark ruling, the Hon&#8217;ble Supreme Court of India broadened the definition of \u201cState\u201d under Article 12 of the Constitution, holding that statutory bodies are considered as instrumentalities of the State, and are thus subject to constitutional obligations.<\/span><\/p><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/fawyerz.in\/judgments\/constitutional-law\/r-d-shetty-v-the-international-airport-authority-of-india-and-ord-1979-case-summary\/#Facts_of_R_D_Shetty_V_The_International_Airport_Authority_of_India\" >Facts of R. D. Shetty V. The International Airport Authority of India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/fawyerz.in\/judgments\/constitutional-law\/r-d-shetty-v-the-international-airport-authority-of-india-and-ord-1979-case-summary\/#Issues_framed\" >Issues framed<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/fawyerz.in\/judgments\/constitutional-law\/r-d-shetty-v-the-international-airport-authority-of-india-and-ord-1979-case-summary\/#Judgment_of_R_D_Shetty_V_The_International_Airport_Authority_of_India\" >Judgment of R. D. Shetty V. The International Airport Authority of India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/fawyerz.in\/judgments\/constitutional-law\/r-d-shetty-v-the-international-airport-authority-of-india-and-ord-1979-case-summary\/#Click_here_to_read_the_Judgment\" >Click here to read the Judgment<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Facts_of_R_D_Shetty_V_The_International_Airport_Authority_of_India\"><\/span><span style=\"color: #993300;\"><b>Facts of R. D. Shetty V. The International Airport Authority of India <\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2><ol><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The International Airport Authority of India, a statutory body, invited tenders for a restaurant and snack bars at Bombay Airport.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0The notice specified that only &#8220;registered IInd Class Hoteliers having at least 5 years experience&#8221; could submit tenders.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The fourth respondents, who did not meet the five-year experience requirement, submitted the only complete tender and were awarded the contract. The International Airport Authority of India (IAAI) found their catering experience satisfactory.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The appellant (R.D. Shetty) challenged the decision <\/span><span style=\"font-weight: 400;\">in the Bombay High Court by filing a writ petition<\/span><span style=\"font-weight: 400;\">, arguing that he would have submitted a tender had he known the experience requirement would not be enforced.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">He contended that the IAAI, as a state authority, acted arbitrarily and violated the equality clause of the Constitution by accepting a tender that didn&#8217;t meet the stated criteria, denying him equal opportunity.<\/span><\/li><\/ol><h2><span class=\"ez-toc-section\" id=\"Issues_framed\"><\/span><span style=\"color: #993300;\"><b>Issues framed<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2><ol><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Whether the<\/span><span style=\"font-weight: 400;\"> International Airport Authority of India, a statutory body, could<\/span><span style=\"font-weight: 400;\"> be considered an &#8220;instrumentality&#8221; or &#8220;agency&#8221; of the State under Article 12 of the Indian Constitution, hence it is maintainable or not?<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Whether the International Airport Authority of India (IAAI) violated Article 14 by accepting the tender of the fourth respondents without the required experience, thereby engaging in discriminatory and arbitrary practices?<\/span><\/li><\/ol><h2><span class=\"ez-toc-section\" id=\"Judgment_of_R_D_Shetty_V_The_International_Airport_Authority_of_India\"><\/span><span style=\"color: #993300;\"><b>Judgment of R. D. Shetty V. The International Airport Authority of India<br \/><\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2><p><span style=\"font-weight: 400;\">The Court\u2019s analysis focused on interpreting Article 12 of the Constitution, which defines &#8220;State&#8221; to include various entities such as the government and its instrumentalities. The key question was whether a body created by statute, could be classified as a &#8220;State&#8221; under this Article. It also analyzed Article 14, which prohibits arbitrary state action and ensures equality before the law.<\/span><\/p><p><span style=\"font-weight: 400;\">The Court meticulously assessed the characteristics of the IAAI based on established criteria for identifying a &#8220;government instrumentality or agency.&#8221; The Court found that:<\/span><\/p><ol><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Financial Dependence<\/b><span style=\"font-weight: 400;\">: The IAAI relied heavily on the Central Government for capital, including all its non-recurring expenditures, and was required to submit annual financial estimates for government approval.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Government Control<\/b><span style=\"font-weight: 400;\">: The Central Government exercised significant control over the IAAI, including the power to appoint and dismiss its Chairman and members, and to issue binding directives on policy matters.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Public Function<\/b><span style=\"font-weight: 400;\">: The IAAI managed functions that were previously performed directly by the Central Government, such as airport administration and air navigation services, emphasizing its public character.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Public Servants<\/b><span style=\"font-weight: 400;\">: Employees of the IAAI were classified as &#8220;public servants&#8221; under the International Airport Authority Act of 1971, further reinforcing the connection to governmental duties.<\/span><\/li><\/ol><p><span style=\"font-weight: 400;\">In the case of Ramana Dayaram Shetty v. The International Airport Authority of India, considering the cumulative effects of these factors, the Court concluded that a statutory authority, like the International Airport Authority of India (IAAI), falls under the purview of Article 12 of the Indian Constitution. The court also found that the IAAI had acted arbitrarily and discriminated by deviating from its tender\u2019s eligibility criteria, violating Article 14\u2019s guarantee of equal treatment. The IAAI\u2019s acceptance of a tender from a party that did not meet the required experience was deemed unlawful, as it unfairly excluded other potential tenderers. Despite these findings, the court exercised its discretion not to void the contract, citing the appellant\u2019s delayed filing and questionable motives. The judgment reinforced that statutory corporations like the IAAI must uphold constitutional and administrative law standards, ensuring fairness and preventing arbitrary action. <\/span><span style=\"font-weight: 400;\">The Court, further, established guidelines for classifying a corporation or entity as a &#8220;State&#8221; under Article 12, considering the following factors:<\/span><\/p><ol><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Whether the Government Owns the Entire Share Capital:<\/b><span style=\"font-weight: 400;\"> If the entire share capital is held by the government, it indicates the corporation is an instrumentality or agency of the government.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Whether the Financial Assistance from the State is Substantial:<\/b><span style=\"font-weight: 400;\"> If state financial assistance covers almost the entire expenditure, it suggests the corporation has a governmental character.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Whether the Corporation Enjoys Monopoly Status:<\/b><span style=\"font-weight: 400;\"> If the corporation enjoys monopoly status conferred or protected by the state, it may indicate it is an instrumentality or agency of the government.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Whether There is Deep and Pervasive State Control:<\/b><span style=\"font-weight: 400;\"> The existence of deep and pervasive state control indicates the corporation is a state agency or instrumentality.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Whether the Functions are of Public Importance:<\/b><span style=\"font-weight: 400;\"> If the corporation&#8217;s functions are of public importance and closely related to governmental functions, it supports classification as an instrumentality or agency of the government.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Whether a Government Department has been Transferred: <\/b><span style=\"font-weight: 400;\">If a government department is transferred to a corporation, it strongly supports the inference that the corporation is an instrumentality or agency of the government.<\/span><\/li><\/ol><h2><span class=\"ez-toc-section\" id=\"Click_here_to_read_the_Judgment\"><\/span><a href=\"https:\/\/fawyerz.in\/judgments\/wp-content\/uploads\/Ramana-Dayaram-Shetty-V.-The-International-Airport-Authority-Of-India-And-Ord.-1979-AIR-1628-Judgment.pdf\"><b style=\"color: #993300; font-size: 1.22222rem; font-style: inherit; background-color: var(--ast-global-color-5);\">Click here to read the Judgment<\/b><\/a><span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-27d6caa3 elementor-widget elementor-widget-pdfjs-viewer\" data-id=\"27d6caa3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"pdfjs-viewer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<iframe width=\"\" height=\"700\" src=\"https:\/\/fawyerz.in\/judgments\/wp-content\/plugins\/pdfjs-viewer-for-elementor\/\/assets\/js\/pdfjs\/web\/viewer.html?file=https:\/\/fawyerz.in\/judgments\/wp-content\/uploads\/Ramana-Dayaram-Shetty-V.-The-International-Airport-Authority-Of-India-And-Ord.-1979-AIR-1628-Judgment.pdf\"><\/iframe>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>In this landmark ruling, the Hon&#8217;ble Supreme Court of India broadened the definition of \u201cState\u201d under Article 12 of the Constitution, holding that statutory bodies are considered as instrumentalities of the State, and are thus subject to constitutional obligations.<\/p>\n","protected":false},"author":3,"featured_media":1373,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center 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