Bombay High Court clears MIAL to replace Celebi at Mumbai airport

Business Standard

6 days ago

The Bombay High Court on Wednesday lifted the stay imposed on Adani-backed Mumbai International Airport Limited (MIAL) to replace its ground handling service provider Celebi, a Turkish aviation firm.
The court had in May restrained MIAL from finalising tenders to appoint a new ground handling service provider amid Celebi's legal challenge to the revocation of its security clearance by the central government.
However, with the Delhi High Court dismissing Celebi's plea on July 7 and upholding the revocation, the Bombay High Court found no further grounds to continue the stay.
The decision now paves the way for MIAL to proceed with the appointment of a new operator for ground and bridge handling services at Chhatrapati Shivaji Maharaj International Airport, where Celebi has handled nearly 70 per cent of operations.
The dispute began after the Ministry of Civil Aviation, acting through the Bureau of Civil Aviation Security (BCAS), withdrew Celebi's clearance on May 15, 2025, citing national security grounds.
The move came amid mounting diplomatic tensions after Turkey supported Pakistan during hostilities involving Operation Sindoor. At least seven airports in the country cancelled the services of Celebi and its subsidiaries.
Celebi challenged the contract cancellations before the high courts of Madras, Bombay, and Gujarat, in addition to contesting the security revocation before the Delhi High Court.
The plea in the Gujarat High Court is still pending. In June, the Madras High Court granted interim protection to Celebi Ground Services Chennai under Section 9 (interim protection to parties) of the Arbitration and Conciliation Act, 1996.
On July 7, the Delhi High Court dismissed Celebi's plea challenging the Indian government's decision to revoke its security clearance.
The court stated: 'As per settled law, once national security considerations are found to exist, on the basis of which the security clearance has been cancelled/revoked, it is not for the Court to 'second guess' the same.'
Justice Sachin Datta upheld the revocation of Celebi's security clearance by BCAS in the interest of national security.
The court further noted the existence of impelling geo-political considerations impinging upon the safety of the country.
In its petition to the Delhi High Court, Celebi Airport Services argued that public perception cannot be grounds for revocation of security clearance.
The ground handling company also said it had been given no reason or opportunity for a hearing.
Further, Celebi contended that the Indian government's decision to revoke its security clearance was 'arbitrary and devoid of specific reasons.'