Mumbai: In a relief for Mumbai International Airport Limited (MIAL), the Bombay High Court on Wednesday allowed it to finalise tenders for ground and bridge handling services following the termination of Turkish firm Celebi’s contract.
Justice Somasekhar Sunderesan set aside the earlier interim order passed in May, which had restrained MIAL from finalising the tender based on a plea by Celebi. The judge noted that the interim protection could not be continued, as the Delhi High Court earlier this month dismissed Celebi’s petition against a similar contract termination at the Delhi airport and the revocation of its security clearance.
Observation Made By The Court
“It is now clear that holding up the decision of finding a replacement is not possible and tenable. Continuation of the ad-interim order is no longer reasonable and hence stands vacated,” the court said.
It added that following the revocation of security clearance, all employees and equipment of the petitioner firm had been placed under the control of another company, Indo Thai Airport Services Ltd, which is now carrying out the ground handling and bridge mounting services at the Mumbai airport.
“The petitioner firm has lost all physical access to the airport,” the court observed.
Noting that, as per the contract agreement, conciliation efforts are underway between the parties, the High Court disposed of the petitions filed by Celebi.
On May 26, the court had restrained MIAL from finalising tenders issued on May 17 to appoint a new agency to take over Celebi’s ground and bridge-handling services. Celebi had approached the High Court after the Bureau of Civil Aviation Security (BCAS), under the Ministry of Civil Aviation, revoked its security clearance, leading to MIAL’s termination of its contracts.
Celebi Nas Airport Services India Pvt Ltd, in which Turkish parent company Celebi Aviation holds a 59% stake, filed three petitions challenging the revocation of its security clearance and the termination of the Ground Handling Services Concession Agreement and Bridge Mounted Equipment Service Agreement. The company has termed the revocation “arbitrary and illegal” and sought a stay on, and annulment of, the Centre’s decision.
The security clearance was revoked on grounds of “national security,” amid heightened diplomatic tensions between India and Turkey, particularly over Turkey’s statements in support of Pakistan. The fallout has impacted Celebi’s operations across several major Indian airports.
The Delhi High Court, while dismissing Celebi’s plea against the revocation of its security clearance, noted that there were “compelling national security considerations involved” that “impelled” the Centre to revoke the clearance, with “impelling geo-political considerations” at play.
Celebi’s petition challenging the revocation of its security clearance is pending before a division bench of the Bombay High Court and is likely to be taken up for hearing on Thursday.
