The Supreme Court has stayed the operation of a Kerala High Court judgment which had held that Cochin International Airport Limited (CIAL) qualifies as a “public authority” within the meaning of Section 2(h) of the Right to Information Act, 2005.

 

On August 25, 2025, a Bench of Justices Vikram Nath and Sandeep Mehta heard the Special Leave Petition (SLP) filed by CIAL challenging the Kerala High Court’s order. After hearing arguments advanced by Senior Advocate Mukul Rohatgi, appearing for the petitioner company, the Court granted leave and stayed the High Court judgment until further consideration. The matter has been listed for detailed hearing in January 2026.

 

The controversy dates back to 2019, when the Kerala State Information Commission held that CIAL was a public authority under the RTI Act, and accordingly directed it to disclose certain information sought through RTI applications.

 

CIAL challenged the decision before the High Court, contending that it was not a state-controlled entity, and therefore fell outside the purview of the RTI Act. The company emphasized that:

• The Kerala Government held only 32.42% of CIAL’s paid-up share capital.

• Dividend returns from CIAL had exceeded the amount of the government’s initial investment.

• The Board of Directors, as per the Articles of Association, was the ultimate decision-making authority, and the State had no overriding control over corporate governance or management.

• Appointments of Directors, including the Managing Director, were made at the discretion of the Board and not directly by the government.

 

On the other side, the respondents highlighted several factors to argue that CIAL’s functioning was intrinsically tied to the State:

• CIAL had arranged a 100-million bridge loan from Federal Bank with the State Government acting as guarantor, since the company had no independent security to offer.

• A 1-billion rupee term loan was obtained from HUDCO, also backed by a government guarantee. Repayments commenced in 2000, when the project became operational.

• The predecessor of CIAL, the Kochi International Airport Society (KIAS), was constituted through a Government Order by the District Collector of Ernakulam.

• The land acquisition for the airport was carried out by the Government of Kerala in the name of KIAS. This land was later transferred to CIAL, which meant that the company’s asset base was consolidated at the government’s initiative.

 

In December 2022, a Single Judge Bench of the Kerala High Court upheld the Information Commission’s decision, ruling that CIAL fell within the scope of Section 2(h) of the RTI Act. The Court observed that the aims and objects of CIAL, read in conjunction with Articles 95 and 125 of its Articles of Association, established a “deep and pervasive control” of the Kerala Government over the company.

 

Subsequently, in August 2025, a Division Bench of the High Court dismissed CIAL’s writ appeals and reaffirmed that the company was a public authority. The Bench laid emphasis on:

• The government’s instrumental role in establishing KIAS and later CIAL.

• The transfer of government-acquired land to the company.

• The Articles of Association and the constitution of the Board of Directors, which, according to the Court, indicated substantial control by the State.

 

The Division Bench therefore directed CIAL to comply with RTI applications within the statutory timelines mandated under the Act.

 

Aggrieved, CIAL approached the Supreme Court through its SLP, challenging the High Court’s reasoning. The company reiterated that despite the State’s shareholding and past guarantees, CIAL was incorporated as an independent public limited company under the Companies Act, and therefore could not be equated with government bodies or statutory authorities under Section 2(h) RTI Act.

 

After a preliminary hearing, the Supreme Court stayed the High Court’s directions, thereby granting temporary relief to the company.

 

Appearances