Celebi contract termination row: Bombay HC halts Mumbai Airport's decision on ground handling bids

The pleas said the decisions were arbitrary and illegal and sought that they be set aside.

Mumbai International Airport Limited (MIAL) was on Monday restrained from making a final decision on tenders invited to replace Turkish firm Celebi for ground and bridge handling services at the international airport in an interim order issued by the Bombay High Court.

A vacation bench of Justice Somasekhar Sundaresan, after hearing the matter briefly, said no final decision shall be taken on the tenders till the pleas filed by Celebi are heard post-reopening of the court in June.

The subsidiary of Turkey-based ground handling firm Celebi approached the High Court last week, challenging the revocation of its security clearance and the resulting termination of its contract with MIAL. Earlier this month, India’s aviation security regulator, BCAS, revoked Celebi Airport Services India’s security clearance with immediate effect, citing national security concerns. The move came amid growing backlash in India over Turkiye’s support to Pakistan during Operation Sindoor.

The revocation also applies to other associate entities of Celebi in India. This led to Indian airports, where Celebi operated, terminating their contracts with the group companies. Three petitions were filed by Celebi Nas Airport Services India, which operated at the Mumbai airport, challenging the Centre's decision to revoke the security clearance and contract termination.

The pleas said the decisions were arbitrary and illegal and sought that they be set aside. Celebi holds 59 per cent capital of Celebi Nas Airport Services India Private Limited.

The petition sought suspension and annulment of the administrative decision of security clearance cancellation granted by Bureau of Civil Aviation Security (BCAS) under Ministry of Civil Aviation of India. It also sought annulment of terminations of Bridge Mounted Equipment Service Agreement and the Concession Agreement, and Ground Handling Services by MIAL.

By way of interim relief, Celebi had sought HC to restrain MIAL from taking any final decision on the tenders issued on May 17 for the selection of a new ground handling agency for these services.

Two other Celebi subsidiaries, namely Celebi Airport Services India and Celebi Delhi Cargo Terminal Management India, had earlier this month moved the Delhi High Court against the security clearance revocation and cancellation of contracts by the Delhi airport operator.

*With Agency Inputs