CA dismisses writ petition against SriLankan Airlines

By S.S.Selvanayagam

The Court of Appeal dismissed the writ petition filed against SriLankan Airlines challenging its awarding of a tender for passenger ground handling services at Chennai International Airport.

The matter was taken up for argument before a bench comprising Justices Vijith K. Malalgoda (President of the Court of Appeal) and P. Pathman Surasena.

Dani Aviation Service Ltd. and its Chairman Sivakumar Eliyathamby Sinnarajah, who is a dual citizen of the US and Sri Lanka, cited SriLankan Airlines, its Chairman Ajith N.Dias, its Board of Directors and Chief Executive Officer Suren Ratwatte as well as the Minister of Public Enterprise Development Kabir Hashim, Ministry Secretary Ravindra Hewavitharana, the winning tender bidder Bhadra International India Ltd. and two other bidders as respondents.

Faisz Musthapha PC with N.M. Shahwed and P. Rupasinghe appeared for the petitioners. S.A. Parathalingam PC with Nishkan Parathalingam appeared for SriLankan Airlines.

The petitioners stated that SriLankan Airlines was a Private Limited Company with over 99% of its shareholding is held by the Government.

They stated that the ground activities at international airports cover a wide variety of services required by airlines to operate flights and the services included freight handling, passenger check-in, baggage handling and transport within the airport.

The petitioners lamented that they continued to perform passenger self-handling services for SriLankan Airlines at Chennai International Airport.

They stated that SriLankan Airlines had decided not to renew their status as passenger self-handling service and had called for a tender for the same service. They said that they were aggrieved by this decision and had made representations to the respective Minister and Ministry Secretary following which the Minister directed an inquiry into the process adopted in appointing ground and cargo handling service providers.

In spite of the directive by the Minister, SriLankan Airlines sought to execute an agreement with Bhadra International India, they alleged.

They complained that the decision by SriLankan Airlines was arbitrary, irrational, unreasonable, unlawful and ultra vires its procurement manual.