PROPERTY AND CONTRACTCentral

Section 14 of The Airports Authority of India Act, 1994

(1)All contracts, agreements and working arrangements subsisting immediately before the appointed day and affecting the International Airports Authority, or as the case may be, the National Airports Authority shall, in so far as they relate to the International Airports Authority, or as the case may be, the National Airports Authority, cease to have effect or be enforceable against the International Airports Authority, or as the case may be, the National Airports Authority and shall be of as full force and effect against or in favour of the Authority in which the undertakings have vested by virtue of this Act and enforceable as fully and effectually as if, instead of the International Airports Authority, or as the case may be, the National Airports Authority, the Authority had been named therein or had been a party thereto.
(2)Any proceeding, suit or cause of action pending or existing immediately before the appointed day by or against the International Airports Authority or the National Airports Authority in relation to its undertakings may, as from that day, be continued and enforced by or against the Authority in which it has vested by virtue of this Act, as it might have been enforced by or against the International Airports Authority or the National Airports Authority if this Act had not been passed, and shall cease to be enforceable by or against the International Airports Authority, or as the case may be, the National Airports Authority.

Summary

All contracts and agreements made by the old authorities before the merger automatically continue in full force with the new Authority.
The new Authority replaces the old authorities in these contracts, just as if the new Authority's name was originally written on the documents.
Any lawsuits or legal proceedings that were pending against or started by the old authorities continue seamlessly with the new Authority taking over the case.
You can no longer sue the old authorities or enforce contracts against them.

Practical examples

1A construction firm signed a contract with the National Airports Authority in 1993 to build a runway. After the merger, the firm finishes the job and legally bills the new Airports Authority of India, which must pay them.

2A passenger sued the International Airports Authority in 1994 for a slip-and-fall injury at the airport. After the merger, the passenger's lawyer simply continues the exact same lawsuit against the new Airports Authority of India.

FAQ

1. Do contractors need to sign totally new agreements with the new Authority?

No, existing contracts automatically become valid as if the new Authority's name was always on them.

2. Can I still sue the National Airports Authority for something they did in 1990?

No, they can no longer be sued. You must sue the new Airports Authority of India instead.

3. Do pending court cases get thrown out because the old authority vanished?

No, the pending lawsuits just continue with the new Authority stepping into the shoes of the old one.

Test yourself

Q1.Under Section 14 of The Airports Authority of India Act, 1994, what happens to a contract that was subsisting with the International Airports Authority immediately before the appointed day?

Q2.Under Section 14 of The Airports Authority of India Act, 1994, how are pending suits or causes of action handled after the appointed day?

Q3.Under Section 14 of The Airports Authority of India Act, 1994, how is the text of an old working arrangement legally treated regarding the new Authority?

Q4.Under Section 14 of The Airports Authority of India Act, 1994, which two old entities cease to have contracts enforceable against them?

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