Bombay HC Upholds Eviction Of Former Air India Employees From Kalina Housing Colony Under AAI Act

Mumbai: The Bombay High Court on Tuesday dismissed a batch of appeals filed by former Air India employees challenging their eviction from flats in the Air India Housing Colony in Kalina. The court upheld eviction orders passed by the Eviction Officer under the Airports Authority of India (AAI) Act, 1994, and ruled that the premises are “airport premises” under the Act.

The key issue was whether eviction should be carried out under the AAI Act or the Public Premises (Eviction of Unauthorised Occupants) Act (PPE Act). The employees also questioned the ownership of the buildings after Air India’s privatisation.

The employees, represented by senior advocate Mihir Desai and advocates Ashok Shetty and Rita Joshi, argued that their employers — Air India Ltd., AI Engineering Services Ltd. (AIESL), AI Airport Services Ltd. (AIATSL), and Air India Asset Holding Company Ltd. (AIAHCL) — owned the colony buildings and should have been made parties to the proceedings. They claimed their occupation was linked to employment and that their leave and license agreements had not been properly terminated.

However, the court found no merit in the arguments. It noted that the land on which the colony stands has always belonged to AAI and was leased to Air India in 1952. Upon Air India’s disinvestment, leasehold rights were transferred to Mumbai International Airport Ltd. (MIAL), which then initiated eviction proceedings.

Rejecting the concept of “dual ownership,” the court said: “A structure constructed on leased land would follow the fate of the lease. Upon determination of the lease, all rights in the structures revert to the lessor.”

The judges clarified that even if AIAHCL had a right to monetise the property, it did not mean it owned the buildings. “Monetisation cannot override ownership rooted in law,” Justice Sharmila Deshmukh said in a detailed 56-page judgment.

It was also observed that Air India had withdrawn the housing facility and terminated the leave and license agreements through notices. The court referred to its earlier order dated August 25, 2022, which directed employees to vacate the flats by September 24, 2022.

Holding that the AAI Act, being a special law, overrides the PPE Act in such cases, the court upheld the eviction. However, it granted the employees a six-week stay on the order to allow them to approach the Supreme Court.