Celebi Aviation gets reprieve from Bombay HC amid contract termination row with MIAL
Celebi
, the
Bombay High Court
on Monday directed Mumbai International Airport Limited (
MIAL
) to hold off on awarding new contracts for ground and bridge handling services at the city's international airport.
The local subsidiary of a Turkish firm has approached the court under Section 9 of the Arbitration & Conciliation Act after the Adani Group-owned airport operating company decided to appoint IndoThai as the interim ground handling provider at CSMIA (Chatrapati Shivaji Maharaj International Airport) for the next three months.
Justice Somasekhar Sundaresan, in an oral order, restrained the MIAL from taking any final decision on the tenders till the pleas filed by Celebi are heard post-reopening of the court in June. The detailed order was not uploaded till the time of filing the story.
by Taboola
by Taboola
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Before the court's order, Senior Counsel Advocate Chetan Kapadia and counsel Rohan Agarwal, appearing for Celebi NAS Airport Services India Pvt Ltd, argued that the decision taken by MIAL to terminate the concession agreement was not in accordance with the contract and was unilateral.
While senior counsel Vikram Nankani, appearing for the MIAL, argued that the contract was terminated Bureau of Civil Aviation Security (BCAS) had revoked Celebi's security clearance, which compelled the company to terminate the agreement.
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In mid-May, the government revoked the security clearance required for Celebi to operate in India, citing national security concerns. The clearance is a prerequisite under Indian law for companies providing critical services at airports, including passenger and baggage handling.
The government's decision follows reports that the Pakistani army had used Turkish drones against India in the recent conflict. Nonetheless, Turkey has also expressed its support to Pakistan in 'good and bad' times after India's Operation Sindoor targeted terrorist infrastructure in the neighbouring nation.
Currently, Turkish handling service provider Celebi has filed two separate suits in the Bombay High Court. In another case, the company has filed a writ petition where it has made the Director General of Civil Aviation, the Bureau of Civil Aviation Security and the Airport Authority of India respondents. Also, the company has filed a separate petition against the central government in the Delhi High Court.
The local arm of Celebi has filed a writ petition through advocate Mayank Samuel under Article 226 of the Indian Constitution. Typically, an individual or a company can approach the High Court under Article 226 of the Indian Constitution for judicial intervention in ensuring fundamental rights.
Celebi Aviation
has been operating in India for over a decade, providing ground handling services at several airports including Delhi, Mumbai, Bengaluru, and Hyderabad. Several reports suggest that the company handles around 70% of the ground operations at Mumbai airport, including passenger services, load control, flight operations, cargo and postal services, warehouses and bridge operations.
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