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  • Rule 19(3)(c) of the Aircraft Rules. This Rule
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Citation Codes
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citation codes
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  • Rule 19(3)(c) of the Aircraft Rules. This Rule
Smart Summary

Factual and Procedural Background

The Respondents stated on affidavit that action was taken against the Appellant Company under Rule 19(3)(c) of the Aircraft Rules. The affidavit asserted that Rule 19(3)(c) does not deal with any emergent situation, unlike Section 6 of the Act, and thus no emergent situation had arisen that required immediate cancellation of the permits granted to the Appellant Company and its directors. The permits were valid until 19 April 2002. An order of cancellation dated 5 September 2001 was challenged; the learned Single Judge held that the cancellation was not sustainable in law. The present opinion addresses these findings and related reliefs claimed by the Appellants.

Legal Issues Presented

  1. Whether action taken under Rule 19(3)(c) (without an emergent situation) justified immediate cancellation of the Appellants' permits.
  2. Whether principles of natural justice required issuance of a show cause notice before cancelling permits that affected civil rights.
  3. Whether the court may expand the scope of Article 226 of the Constitution to determine monetary compensation for alleged loss of business or to create a new adjudicatory forum to assess such loss.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The court analyzed the matter as follows:

  • The Respondents' own affidavit established that the action was taken under Rule 19(3)(c), which, unlike Section 6 of the Act, does not concern emergent situations; therefore the Respondents' statement indicated no emergent situation justified immediate cancellation.
  • The law requires that administrative actions affecting civil rights engage the principles of natural justice unless expressly or necessarily excluded; those principles therefore applied in the present case.
  • Given that natural justice applied, the Respondents should have issued a show cause notice specifying the facts on which cancellation was proposed. No show cause notice was issued and the Appellants were not given any prior indication of a possible cancellation.
  • On these bases, the court concluded that the cancellation order dated 5 September 2001 was illegal and that the learned Single Judge correctly held the cancellation not sustainable in law.
  • Separately, the court held that it could not enlarge the remedial scope of Article 226 to determine monetary compensation for alleged loss of business nor could it create a new adjudicatory forum for assessment of such loss.

Holding and Implications

The court held that the order of cancellation dated 5th September, 2001 was illegal and was not sustainable in law.

Implications:

  • The cancellation is void for failure to afford principles of natural justice (no show cause notice provided).
  • The court declined to award or adjudicate monetary compensation for alleged business losses under an expanded reading of Article 226 and refused to create a new forum to assess such losses.
  • No broader precedent was established beyond the direct effect on the parties as described above.

    A.K Sharma & Another. v. Directors General Of Civil Aviation And Anr

    Madan B. Lokur, J.— The categorical statement of the Respondents on affidavit is that action was taken against the Appellant Company in terms of Rule 19(3)(c) of the Aircraft Rules. This Rule does not deal with any emergent situation unlike Section 6 of the Act. Therefore, on the statement of the Respondents it is clear that no emergent situation had arisen which necessitated the immediate cancellation of the permits granted to the Appellant Company and its directors.

    The law is now very well settled that even in respect of an administrative action which affects the civil rights of a citizen (as in the present case and as held by the learned Single Judge) the principles of natural Justice would automatically come into play unless they are specifically excluded or excluded by necessary implication.

    This being so, the least that the Respondents could have done was to issue a show cause notice to the Appellants indicating the facts on the basis of which it was proposed to cancel all their permits which were valid till 19th April, 2002. Admittedly, no show cause notice was issued to the Appellants. In fact, the Appellants were not even given a hint of the possibility of a cancellation of the permits. For this reason, we hold that the order of cancellation dated 5th September, 2001 was illegal and it was rightly held by the learned Single Judge as being not sustainable in law.

    We are of the view that we cannot enlarge the scope of Article 226 of the Constitution to the extent suggested nor can we determine monetary compensation, if any, which is said to be payable to the Appellants by way of loss of business nor can our jurisdiction be stretched to the extent of creating a new adjudicatory forum for the assessment of loss allegedly incurred by the Appellants.

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    A.K Sharma & Another. v. Directors General Of Civil Aviation And Anr
    (Apr 18, 2002)