Bombay High Court Defers Celebi's Plea Against Contract Termination By Mumbai Airport, Awaits Delhi HC Verdict In Similar Case

The Bombay High Court on Friday adjourned till July 10, the hearing in the petition filed by Turkey-based company Celebi's Indian subsidiary - Celebi NAS, which has challenged the termination of its services by the Mumbai International Airport Limited (MIAL).

A division bench of Justices Burgess Colabawalla and Firdosh Pooniwalla was informed that overall India, 7 airports have cancelled the services of the petitioner and its subsidiaries, including the airports in Mumbai, Delhi and Chennai etc.

"The petitioners have already approached the Delhi High Court and also the Madras High Court seeking similar reliefs. In fact, Delhi High Court has reserved its order after hearing extensive arguments from both the sides. Thus, the Madras High Court has passed an order stating it will await the judgment of the Delhi High Court, since similarly worded arguments are made before Delhi HC and its findings will have an impact on the issues in all the petitions," Solicitor General Tushar Mehta informed the judges.

The Solicitor General therefore, requested the bench to consider passing a similar order and await the judgment of the Delhi HC.

Senior Advocate Chetan Kapadia representing Celebi, too consented with the submission.

Considering the request, the bench said it too will await the judgment of the Delhi HC and adjourned the hearing till July 10.

Background:

Celebi Nas Airport Services India (a subsidiary of Celebi), which operates at the Mumbai airport had filed three petitions - two arbitration petitions and a writ petition, challenging the Centre's decision to revoke the security clearance and contract termination by the MIAL.

The two arbitration petitions pertaining to the contract termination by the MIAL were heard by a single-judge bench of Justice Somasekhar Sundaresan while the writ petition challenging the revocation of security clearance were listed before a division bench led by Justice Colabawalla.

In its petitions, Celebi has claimed that the decisions against it were arbitrary and illegal and therefore has urged the court to set aside the same.

Notably, India's aviation security regulator - Bureau of Civil Aviation Security (BCAS) under the Ministry of Civil Aviation of India had last week revoked the security clearance of Celebi Airport Services India of Celebi, citing grounds related to 'national security' with immediate effect. This action was on the heels of the ongoing tension between India and Pakistan and Turkey's support to Pakistan.

The revocation on Celebi's security clearance applies to all of its associate entities in India which resulted in several airports including the Delhi and Mumbai International Airports terminating services of the Indian subsidiaries of Celebi.

In its plea in Bombay HC, the Celebi Nas Airport Services, India has sought suspension and annulment of the administrative decision of security clearance cancellation taken by the BCAS. It also seeks annulment of the terminations of the Bridge Mounted Equipment Service Agreement and the Concession Agreement and Ground Handling Services by MIAL.

As an interim relief, a directive is sought against MIAL from taking any final decision or selection a new ground handling agency to replace Celebi Nas Airport Services.

It would not be out of place to mention that two other subsidiaries of Celebi - Celebi Airport Services India and Celebi Delhi Cargo Terminal Management India have petitioned the Delhi High Court against the security clearance revocation and cancellation of contracts by the Delhi airport operator.