HC upholds govt order revoking security clearance to companies with Turkey links, dismisses Celebi's plea

Setback for Celebi as HC upholds govt order revoking security clearance to companies with Turkey links

Delhi High Court on July 7 dismissed the plea by Celebi Airport Services challenging the decision of Bureau of Civil Aviation Security (BCAS) revoking its security clearance in the "interest of national security". Justice Sachin Datta passed the order on July 7.

In a detailed judgment, Justice Sachin Datta sided with the central government, holding that national security is an exception to the rule of natural justice, even if not explicitly stated in the Aircraft Security Rules.

On May 15, the Bureau of Civil Aviation Security (BCAS) revoked Celebi's security clearance, citing "national security" concerns, days after Turkey backed Pakistan and condemned India's strikes on terror camps located in Pakistan and Pakistan-Occupied Kashmir. The security clearance was initially granted to the company in November 2022.

The government had revoked the security clearance for Celebi Airport at the Indian airports, as calls grew to ban Turkish businesses in the wake of their country supporting Pakistan which harbours terrorism after Operation Sindoor. Celebi Airport Services India Pvt Ltd (CASIPL) called the move arbitrary and based on 'vague' national security concerns.

The court accepted the Solicitor General’s position that powers under Sections 6 and 10 of the 2024 Act override procedural prescriptions under Rule 12: "The statutory framework confirms that the power exercised in such cases is plenary in nature and is not contingent upon preconditions…"

Furthermore, the court noted that Celebi’s rights are "privileges," not "entitlements," and clarified that foreign-owned companies cannot claim fundamental rights under Article 19.

On the issue of Celebi not being told the reasons, the court accepted the government’s submission that disclosing intelligence inputs could compromise national security, echoing Lord Hoffman in Rehman, reiterating that matters of national security must be entrusted to the executive and not to law and policy.

Celebi Airport Services India Pvt Ltd and Celebi Delhi Cargo Terminal Management India Pvt Ltd used to oversee ground handling and cargo terminal functions at various airports in the country.

On May 19, the Centre said the decision to revoke clearance was taken in the interest of national security in light of certain inputs that continuing the services of the petitioner companies would be hazardous in the current scenario.

Celebi, used to operate in the Indian aviation sector for over 15 years and had employed over 10,000 people, while offering its services at nine airports. Celebi argued in its court filing that the decision impacts 3,791 jobs and investor confidence. It added that it provided ground handling services at airports in New Delhi, Kerala, Bengaluru, Hyderabad and Goa.

BCAS, in its order, said, "… the security clearance in r/o Celebi Airport Services India Pvt Ltd is hereby revoked with immediate effect in the interest of national security."

Justice Sachin Datta on May 23 had reserved the verdict after hearing the submissions in the matter. Datta on May 23 had asked the Indian government and Celebi to file written submissions by May 26, despite Solicitor General of India Tushar Mehta insisting that both file written submissions by May 24.

Senior advocate Mukul Rohatgi speaking on behalf of Celebi Aviation on May 23 had told the Delhi High Court that the Indian government has not provided any information on why Celebi Aviation's security clearance was revoked by the BCAS.

Rohatgi had argued that there has been a violation of natural justice is the case as the company was not given a notice and was not even informed about the proposed action which the government was to take. He said that there was a complete violation of Rule 12 of the Aircrafts Security Rules, 2023, which renders the decision of the government nullity and void. It is not voidable. It is nullity and is void, he said.

Rule 12 empowers the Director General to suspend the security clearance, after giving the entity an opportunity of being heard, and for reasons to be recorded in writing, for a period not exceeding one year or cancel the same where there are reasonable grounds to believe, in the interests of national security or civil aviation security or if the entity has contravened or failed to comply with any condition of security clearance or security programme or provision of these rules.

Rohatgi strongly opposed the practice of the government of sharing the inputs and reasons for revoking security clearance in a sealed cover. Meanwhile Solicitor General of India Tushar Mehta had argued that the action of revoking security clearance of the Turkey based company was not a “carte blache” and judicial review is always available to the affected party.