Case of R D Shetty Vs International Airport Authority of India

The case of R.D. Shetty Vs International Airport Authority of India (1979) is a landmark judgment by the Supreme Court of India that established the principle of ‘public law remedy’ and the scope of judicial review in cases of contractual disputes involving public authorities.

In this case, R.D. Shetty had entered into a contract with the International Airport Authority of India (IAAI) to operate a restaurant at the Bangalore airport. The contract was for a fixed period and contained provisions for its renewal. However, when the contract came up for renewal, the IAAI refused to renew it and instead awarded the contract to another party.

R.D. Shetty challenged this decision in court, arguing that the IAAI had acted arbitrarily and in violation of the principles of natural justice. The Supreme Court held that even though the contract was between two private parties, the IAAI was a public authority and therefore subject to public law remedies. The court further held that the decision of a public authority could be reviewed on the grounds of illegality, irrationality, and procedural impropriety.

The judgment in the R.D. Shetty case has had far-reaching implications for the Indian legal system, particularly in the area of administrative law. It has established the principle that even private parties who enter into contracts with public authorities can seek public law remedies if the actions of the public authority violate fundamental principles of fairness and justice. It has also clarified the scope of judicial review in cases of contractual disputes involving public authorities.

Books Recommended Click to Buy

1. D.D.Basu, Shorter Constitution of India,

2. V.N.Shukla, Constitution of India,

3. H.M.Seervai, Constitution of India,

4. M.P.Jain, Constitution of India

5. B.K.Sharma, Introduction to Constitution of India,

6. Chhachhar.Varun, ―Right to Information and Administration of Justice.