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Delhi High Court Judgment Dated 4th March 2011– Para 21

Para 21 of Judgment of Delhi High Court on ground handling policy. The Airline operator in terms of the 2007 regulation can undertake Ramp Handling and Traffic Handling as mentioned in regulation 2(e)(i) and (ii) through there bonafide whole time employees in all airport other than 6 Airports. Hence it cannot be said that they would be out of business submission of AAI at the court

"PARA 21"
21. It is set forth that the ground handling services are a very sensitive part of an activity of airlines and keeping in view the security factor and to streamline the ground handling service, the Regulations and the circulars have been brought into force. The airline operator, in terms of the 2007 Regulations, can undertake ramp handling and traffic handling as mentioned in Regulation 2(e)(i) and (ii) through their bonafide whole time employees at all airports other than the six airports and, hence, it cannot be said that they would be out of business. That apart, only a division of services has been created keeping the national security in view. The threat perception cannot be totally marginalized to foster the business interest of the petitioners and, therefore,framing of a comprehensive policy was the warrant and the same has been accordingly done. The airlines have been permitted to handle till the interface of passengers and, thereafter, it has to be done by the agency chosen, as per the Legislation, Regulations and circulars, by the competent authority. In terms of Rule 92 of the 1937 Rules, the Central Government has the power to ensure security and safety while granting ground handling services. The 1994 Act confers immense powers on the respondent and W.P.(C) 8004/2010 Page 20 of 96 accordingly, the Regulations have been framed and the circulars have been issued and there is no transgression of the Act or the Rules. The policy decision taken by the authorities has a rationale and the restrictions imposed are reasonable for the reason that the CCS which is the highest executive authority on national security has approved the said policy and in any case, there cannot be any compromise with the security of the nation. The airline operators, who were carrying out the ground handling services, were outsourcing the same and a review was done and the policy was amended and the policy, by no stretch of imagination, can be said to be arbitrary or capricious.