Bombay High Court vacates order granting relief to Turkish firm Çelebi

The Bombay High Court on Wednesday decided to vacate its earlier order restraining Mumbai International Airport Limited (MIAL) from finalising bids to replace Turkish aviation firm Çelebi Aviation Holding's subsidiary for ground and bridge handling services at the Chhatrapati Shivaji Maharaj International Airport.

The Court decided to withdraw its earlier grant of interim relief to Çelebi in view of the Delhi High Court's recent decision to reject a writ petition filed by the firm challenging the Indian government's revocation of its security clearance.

"Now that Delhi High Court has rejected the writ petition ... continuation of protection will not be in aid of arbitral proceedings ... Ad interim protection is vacated ... It is now clear that holding up the decision of finding a replacement is not possible and tenable," opined Justice Somasekhar Sundaresan today, while closing an application filed by Çelebi under Section 9 of the Arbitration and Conciliation Act.

The Court also recorded a submission that a conciliation process is now underway to try and settle the matter. It added that Çelebi may approach the High Court again for relief if conciliation fails.

"Should the conciliation fail and any other interlocutory application found necessary to invoke Section 9, it is open for petitioner to agitate the same as and when such relief is perceived to be necessary," the Court said.

The dispute arose from the Indian government’s recent decision to revoke Çelebi’s security clearance, citing national security concerns after Turkey publicly backed Pakistan during a recent four-day Indo-Pak military conflict. The revocation led to the termination of Çelebi’s operational agreements at Mumbai Airport, a move the company claims was abrupt and unlawful.

Subsequently, MIAL directed Çelebi to hand over all equipment, property, personnel and staff to Indo Thai Airport Management Services Pvt. Ltd., which was nominated as a pro tem replacement operator.

On May 17, MIAL issued a tender for a new long-term concessionaire, which would effectively conclude Çelebi's role at the airport.

Çelebi then moved Court claiming that the termination was not in accordance with the agreements, which provided for a thirty-day cure period before any termination could take effect.

MIAL submitted that Çelebi had, on the same day as the revocation, issued a notice to all its business partners across India stating that it was ceasing its ground handling operations immediately in light of the loss of security clearance and disowning liability.

When the matter was heard earlier during court vacations, the High Court noted that a case challenging the Bureau of Civil Aviation Security (BCAS) order, revoking Çelebi's security clearance, was being heard by the Delhi High Court in relation to Çelebi's operations at Delhi International Airport.

A similar challenge regarding the Mumbai operations was also pending before a Division Bench of the Bombay High Court.

In light of this, the single-judge Bench said that it would be inappropriate to allow any permanent steps—like appointing a new operator—until the root issue is resolved.

Therefore, it granted Çelebi interim relief until the matter was heard by a regular Bench after court vacations.

The same was vacated today.

Senior Advocate Chetan Kapadia along with advocates Rohan Aggrawal, Mayank Samuel, Neelanshu Roy, Sohil Mukadam, instructed by Mayank Samuel (Sirius Legal) appeared for the Çelebi.

Senior Advocate Vikram Nankani along with Shoma Maitra, Nipeksh Arvind Jain, instructed by Wadia Ghandy & Co appeared for MIAL.