High Court Restrains Mumbai International Airport From Taking Final Decision On Replacement Of Turkish Firm Celebi's Subsidiary

The Bombay High Court on Monday restrained the Mumbai International Airport Limited (MIAL) from taking a final decision in the bids invited on May 17 to replace Turkey-based Celebi for ground and bridge handling services at city's International airport, till the its (Celebi) challenge to cancellation of security clearance is heard by a regular bench after the summer vacations. 

Vacation Court Judge Justice Somasekhar Sundaresan noted that the fundamental issues such as the challenge to revocation of security clearance are already being dealt with the Delhi High Court (with respect to Delhi Airport) and is pending hearing before a regular division bench as regards the operations in Mumbai Airport.

"It would be appropriate to give the parties some time to await the outcome of the challenge to the fundamental cause of the disputes and differences between the parties. In these circumstances, the Respondent (MIAL) is directed that until the Regular Bench is seized of this matter upon reopening after vacation on the next date, a final appointment of a replacement operator must not be effected. It is made clear that any assessment of technical expertise, competence and review of financial bids that may be received pursuant to the tender may indeed be processed by the Respondent, but no final decision on appointment of an operator to replace the Petitioner or to replace Indo Thai (which is a pro tem arrangement) on a permanent basis shall be taken without the leave of this Court," the judge said in the order. 

The matter has been placed for further consideration on June 12, 2025.

This comes after the judge heard the arguments put forth by senior advocate Chetan Kapadia on behalf of Celebi's Indian subsidiary Celebi Nas Airport Services India Pvt. Ltd., who argued that if any decision is taken on the bids called on May 17 to replace his clients, it would cause an 'irreversible harm' to his clients. 

The senior counsel pointed out that the 'sudden' revocation of security clearance and the subsequent termination of its clients services by the MIAL has impacted the employment of nearly 2088 of its staff, who were trained for nearly 10 years. The counsel added that his clients had invested crores of rupees for the training purposes of the staff given the fact that the two agreements with the Turkish firm were initially signed in April 7, 2015 (for bridge handling) and May 9, 2018 (for ground handling) for a period of 30 years. 

"The immediate revocation and subsequent termination by MIAL has put Celebi in a position where it cannot even approach a court for a remedy. Ordinarily, we would have been eligible for a 30 days notice prior to the termination of contract by MIAL," Kapadia argued. 

However, the MIAL contested the contention pointing out the 'special clause' in the contract, which enables it to act in compliance with the orders of the government of India in view of national security and interests. "In such circumstances, a notice is not required," MIAL's counsel contended. 

Further, the MIAL counsel pointed out that as a pro-ten measure, the Indo-Thai was asked to operate the services with the staff and the equipment of Celebi. 

Having heard the same, Justice Sundaresan directed that the pro-tem company must hand over a report of all its operational and financial information to MIAL which will hand it over to Celebi including all its (Celebi's) obligations.

Background:

Celebi Nas Airport Services India (a subsidiary of Celebi), which operates at the Mumbai airport has 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.

As per the HC website, the two arbitration petitions pertaining to the contract termination by the MIAL will soon be listed before a single-judge bench while the writ petition challenging the revocation of security clearance will be heard by a division bench.

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. 

Appearance: 

Senior Advocate Chetan Kapadia along with Advocates Rohan Aggrawal, Mayank Sameel, Neelanshy Roy and Sohil Mukadam instructed by Mayank Sameel (Siris Legal) appeared for the Petitioner.

Senior Advocate Vikram Nankani along with Advocates Shoma Maitra and Nipeksh Arvind Jain instructed by Wadia Ghandy & Co. represented MIAL.

Case Title: Celebi Nas Airport Services India Pvt. Ltd. vs Mumbai International Airport (Commercial Arbitration Petition (L) 15987 of 2025)

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