The Bombay High Court on Wednesday vacated the interim protection granted to Turkey-headquartered airport ground handling and bridge mounting services major Celebi, which had restrained Mumbai International Airport Ltd (MIAL) from taking a final decision on tenders to replace the company’s subsidiary until further orders.
A single-judge bench of Justice Somasekhar Sundaresan referred to a recent Delhi High Court verdict of July 7, which rejected a writ petition by another Celebi subsidiary seeking suspension and annulment of the Bureau of Civil Aviation Security’s (BCAS’s) cancellation of its security clearance in the aftermath of Operation Sindoor.
The BCAS, amid a backlash over Turkey’s support for Pakistan during the India-Pakistan conflict, had in May revoked with immediate effect the security clearance of Celebi’s Indian arm, citing “national security”.
The revocation led airports across India where the Celebi group operated, including MIAL, to terminate their contracts with the group companies, prompting the subsidiaries to approach the courts.
The Bombay High Court had extended its interim order of May 26, awaiting the Delhi High Court verdict, noting that final permanent replacement of the petitioner would lead to “irreparable injury” till then. The MIAL was directed not to give effect to the final appointment of a replacement operator till further orders.
The high court had noted that after revocation of security clearance, Celebi had lost access to the MIAL premises. However, all its equipment and personnel remained the same and were placed under the control of another firm, Indo-Thai Airport Services, which is not carrying ground handling and bridge mounting services at Mumbai airport.
“Now that Delhi HC has repealed the writ petition, it is now clear that holding up the decision of finding a replacement is not possible and tenable. Continuation of interim protection is no longer reasonable and will not be in aid of arbitral proceedings. Ad-interim protection is vacated,” the high court noted on Wednesday.
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Justice Sundaresan was hearing two applications by Celebi Nas Airport Services India, filed under Section 9 of the Arbitration and Conciliation Act against Adani group-owned MIAL, seeking annulment of its termination of contracts with the petitioner.
After it was informed that the conciliation process under contractual agreement between parties was underway, the judge said that in case the same fails, it was open for petitioner Celebi to agitate the same before an appropriate forum as and when such a relief is perceived to be necessary.
Disposing of the arbitration pleas, Justice Sundaresan noted that the Delhi High Court, through its July 7 verdict, has not granted any protective relief to Celebi, and multiple high courts had also awaited the Delhi High Court decision.
Meanwhile, a division bench of the Bombay High Court led by Justice B P Colabawalla is likely to hear on Thursday the writ petition filed by Celebi Nas against revocation of security clearance cancellation by BCAS. The division bench had deferred the hearing awaiting the Delhi High Court verdict.
