In an interim relief to Turkish ground handling and cargo operator Çelebi, the Bombay High Court on Monday restrained Mumbai International Airport Ltd (MIAL) from finalising the tender process to select a replacement.
The order comes as Çelebi continues to challenge the Indian government’s decision to revoke its security clearance. The move followed Turkey’s support for Pakistan in the India-Pakistan conflict.
Prior to the cancellation of its clearance, Çelebi provided ground handling services at nine major international airports across India.
On Monday, a vacation bench led by Justice Somasekhar Sundaresan ruled that MIAL must not proceed with any final decision on the tenders until Çelebi’s petitions are heard, after the court’s reopening in June.
Çelebi had filed two arbitration applications against MIAL, seeking the annulment of its unilateral and immediate termination of both the bridge-mounted equipment service agreement and the ground handling services concession agreement. The company also sought urgent interim measures to prevent MIAL from concluding the tender process, dated 17 May, to select a new ground handling agency.
Earlier, on 15 May, the Bureau of Civil Aviation Security (BCAS) revoked Çelebi’s security clearance, citing concerns related to national security. The company first approached the Delhi High Court seeking relief, and later filed similar petitions in the Bombay High Court.
Çelebi alleged that the revocation had severely impacted its operations and business relations with other airport operators across the country.
The government, however, maintained that it was within its rights to revoke the clearance and was under no obligation to provide detailed reasons when acting in the interest of national security and sovereignty.
The Delhi High Court has heard arguments from both Çelebi and the Union government and reserved its judgment, on May 23.
In a media statement issued on May 15, Çelebi strongly denied all allegations. “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 Canada, the United States, the United Kingdom, Singapore, the United Arab Emirates and Western Europe,” the statement said.
The company added: “Actera Partners II L.P., a Jersey-registered fund, holds a 50% stake in Çelebi Havacılık Holding A.Ş. The remaining 15% is owned by Alpha Airport Services BV, a Dutch-registered entity.”
Currently, over 10,000 temporary ground handling staff have been reallocated to Air India SATS Airport Services (AI SATS), AI Airport Services Ltd (AI ASL), and Bird Group. Meanwhile, MIAL has appointed Indo Thai Airport Services to handle ground operations in Mumbai.
(By arrangement with livemint.com)