In interim relief, Bombay High Court halts Mumbai airport's bid to replace Celebi

In an interim relief to Celebi, the Bombay High Court on Monday restrained the Mumbai International Airport Ltd (MIAL) from making a final decision pertaining to tenders received for replacing the Turkish ground handling and cargo operator.

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This comes at a time when Celebi is defending itself against the government's decision to revoke the company's security clearance. The Centre's move followed Turkey's recent public support for Pakistan after the Pahalgam terror attack in India.

Before its security clearance was cancelled, Celebi provided ground handling services to nine major international airports in India.

On Monday, a vacation bench led by Justice Somasekhar Sundaresan held that no final decision shall be taken on the tenders till the petitions filed by Celebi are heard by the court after it reopens in June.

Also Read | Turkey's Celebi to Delhi HC: Security clearance withdrawal has hurt business

Celebi had filed two arbitration applications against MIAL, seeking the annulment of its unilateral immediate terminations of the bridge mounted equipment service agreement and the concession agreement ground handling services and urgent interim measures to restrain MIAL to conclude the tenders dated 17 May for selection of a new ground handling agency for these services.

Earlier, on 15 May, Bureau of Civil Aviation Security (BCAS) revoked Celebi's security clearance, citing national security risks. Aggrieved by the decision, Celebi first moved the Delhi High Court seeking relief.

Also Read | We are an Indian company, employees are Indian: Celebi tells Delhi HC

Subsequently, it filed petitions in Bombay High Court too for seeking similar relief in the matter.

Celebi alleged that the government's decision to cancel the security clearance had severely impacted the company's business and contracts with other operators across the country.

However, the government stood firm, stating that it had the powers to do so and it does not need to assign any reasons while protecting the national security and sovereignty of the country.

The Delhi High Court has heard both Celebi and the Union government in detail and reserved its judgement in the matter on 23 May.

In a media statement issued on 15 May, Celebi refuted all allegations and said it is a globally operated aviation services company. "Çelebi Aviation India unequivocally refutes all allegations circulating on social media regarding the company’s ownership and operations in India. The company is 65% owned by international institutional investors from across Canada, the United States, the United Kingdom, Singapore, the United Arab Emirates and Western Europe," said the company in a media statement.

It added, "Actera Partners II L.P., a Jersey-registered fund holds 50% ownership in Çelebi Havacılık Holding A.Ş. The remaining 15% is held by Alpha Airport Services BV, a Dutch-registered entity."

Currently, over 10,000 employees on a temporary basis have been transferred to Air India SATS Airport Services (AI SATS), AI Airport Services ( AI ASL), and Bird Group. Similarly, Mumbai International Airport appointed Indo Thai Airport Services for ground handling.