Summary: The Madras High Court made a decision on a disagreement between PVR INOX Limited and the Airports Authority of India (AAI) about running a movie theater at Chennai Airport. The court looked into whether the theater could operate inside the airport and what it meant for the agreement that was ended.
Parties Involved:
- Petitioner: PVR INOX Limited
- Respondent: Airports Authority of India (AAI)
PVR INOX Limited asked to keep running a movie theater at Chennai Airport. The AAI sent a letter on July 21, 2023, asking for the theater to be closed, saying it wasn't allowed under the AAI rules.
Agreement Details:
- A development agreement was signed on June 20, 2018, between AAI and Meenambakkam Realty Pvt. Ltd.
- PVR INOX made a deal with Meenambakkam Realty to run the theater for 13.5 years.
Termination:
- On May 15, 2025, Meenambakkam Realty told PVR INOX that the agreement with AAI was ended.
Judge: The Honourable Mr. Justice M. Dhandapani
Key Points:
Airport Definition: The court looked into whether the theater was part of the "airport" as defined by the AAI rules. It decided that since the theater was in an area not restricted to the public, it wasn't part of the restricted airport area.
Permissibility Under AAI Act: The court found no clear rule in the AAI Act stopping a movie theater from operating in the airport, especially in areas open to the public.
Contractual Obligations: The court said that the deal between PVR INOX and Meenambakkam Realty was tied to the main agreement. When the main agreement ended, AAI didn't have to keep the deal with PVR INOX.
Summary of Verdict: The court decided that while there was no specific rule stopping the theater from operating, a policy decision from the Ministry of Civil Aviation is needed. The theater can continue running until such a decision is made.
This case shows the complicated issues involved in airport operations and business activities, highlighting the need for clear rules.
