April 9, 2012

HC lets flying club operate, tells it to pay Rs 2.5 lakh rent

The Bombay high court on Wednesday allowed the 80-year-old Bombay Flying Club (BFC) to continue its activities and conduct aviation examinations, while directing it to pay a rent of Rs 2.5 lakh a month from April onwards.

The existing yearly rent of the BFC, the oldest flying club in India, is Re 1. The Airports Authority of India (AAI), whose Juhu Aerodrome is used by the BFC, has been demanding a monthly rent of Rs 5 lakh since 2007. It recently issued a letter to prevent the entry of club members into the premises due to unpaid arrears.

The club’s lawyers, Aspi Chinoy, Venkatesh Dhond and Ameet Naik, said it is a “no profit, no loss” entity. But the HC observed that it runs a flying school on commercial basis.

Advocate C K Chari and M V Kini, the law firm representing AAI, argued that as the present commercial rate was Rs 50 lakh, one-tenth of that amount as rent was nominal. An HC bench of Chief Justice Mohit Shah and Justice Nitin Jamdar posted the matter for June 18 and allowed normal functioning of the club and its school till then.