Bombay high court halts MIAL’s ground handling bid process amid Çelebi Aviation legal battle

The Bombay High Court has temporarily restrained Mumbai International Airport Limited (MIAL) from finalising new bids for ground and bridge handling services, following the contentious removal of Turkish firm Çelebi Aviation from operations at the city’s international airport, Bar and Bench reported.

As per the media report, the court’s interim order—granted by vacation bench Justice Somasekhar Sundaresan, came in response to arbitration applications filed by Çelebi’s Indian subsidiary under Section 9 of the Arbitration and Conciliation Act, 1996. The relief halts MIAL’s tendering process, which began on May 17, until a regular bench takes up the matter after the summer recess.

At the core of the dispute is the Indian government's revocation of Çelebi’s security clearance, citing national security grounds linked to Turkey’s recent public support for Pakistan during a four-day military standoff with India. The clearance revocation led to the abrupt termination of Çelebi’s agreements at Chhatrapati Shivaji Maharaj International Airport, a move the company contends was both unlawful and procedurally flawed.

Çelebi has responded with a legal multi-pronged offensive. In filings before the Bombay High Court, the company is contesting the termination of two major agreements - the Ground Handling Services Concession Agreement and the Bridge Mounted Equipment Service Agreement. It is also seeking to annul the Bureau of Civil Aviation Security’s (BCAS) cancellation of its clearance through a separate writ petition, alleging lack of due process and transparency.

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The legal action isn't limited to Mumbai. Çelebi Airport Services India has initiated a parallel challenge in the Delhi High Court against a similar revocation at Indira Gandhi International Airport, underscoring the wider ramifications of the government’s decision across key aviation hubs.

The case highlights the growing friction between commercial aviation operations and shifting geopolitical alignments, with Çelebi’s ouster potentially setting a precedent for how national security concerns influence foreign participation in critical infrastructure sectors. For now, the Bombay High Court’s pause on MIAL’s tendering process offers Çelebi a crucial legal foothold as it battles to retain its place in India’s aviation landscape.

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