In a scathing judgment, a Mumbai court has penalized the Airports Authority of India (AAI) with ₹1.5 crore in costs for dragging Irish lessor Aer Lingus into a drawn-out lawsuit over unpaid landing and parking fees. The litigation, which spanned nearly three decades, involved disputes related to East-West Airlines, a defunct Indian carrier.
The Bombay City Civil Court ruled that Aer Lingus was unjustly implicated in the case, awarding it ₹1 crore in exemplary costs and ₹50 lakh as litigation expenses, along with 9% annual interest. Judge A. S. Kazi emphasized that AAI had acted without just cause, causing unnecessary delays and expenses for all involved.
The origins of the dispute trace back to 1997, when AAI sought over ₹2 crore in unpaid fees for services rendered to two aircraft—VT-EWH and VT-EWI—leased by East-West Airlines from Aer Lingus. Despite multiple High Court rulings affirming Aer Lingus’ lack of liability as the lessor, AAI persisted in its claims, prolonging the case.
Judge Kazi condemned AAI’s actions as “frivolous, vexatious, and malicious,” highlighting admissions from AAI’s witnesses that confirmed the lessor’s lack of operational involvement. In light of this, the court also ordered AAI to refund a ₹96.25 lakh bank guarantee previously furnished by Aer Lingus.
While ruling in favor of Aer Lingus, the court partially sided with AAI in its claims. East-West Airlines, its official liquidator, and East-West Travel & Trade Links Ltd. were deemed jointly liable to pay ₹2.71 crore to AAI. This amount, covering the outstanding charges, must be settled within three months, with 9% interest applied from the original due date until full payment is made.
The judgment underscores the importance of adhering to legal clarity and avoiding unnecessary litigation, a message sharply directed at AAI’s prolonged pursuit of unfounded claims.
