The Bombay High Court dismissed arbitration petitions filed by Celebi NAS Airport Services India Pvt. Ltd., thereby vacating the interim protection earlier granted against its replacement by Mumbai International Airport Limited (MIAL). The Court allowed MIAL to proceed with finalising a new operator for ground handling and bridge mounting services at Mumbai Airport, following the revocation of Celebi’s security clearance by aviation authorities in May 2025.
The petitions were filed under Section 9 of the Arbitration and Conciliation Act, 1996, seeking interim relief to preserve Celebi’s contractual position under two Concession Agreements. The company had contended that the revocation of its security clearance, which was under challenge before the Delhi High Court, should not result in its permanent replacement without awaiting the court’s final verdict. An ad-interim protection was earlier granted by the Vacation Bench to prevent MIAL from finalising a new operator, although it allowed the tender process to continue.
The matter took a turn after the Delhi High Court, on July 7, 2025, upheld the security clearance revocation without prior notice to Celebi’s sister concern, which operates at other airports. Taking judicial note of this development, Justice Somasekhar Sundaresan held that continuing the interim protection was no longer sustainable, especially since ground operations at Mumbai Airport were already being managed by a new entity, Indo Thai Airport Management Services Pvt. Ltd., using the same personnel and equipment. The Court concluded that any arbitral tribunal would likely find it difficult to award specific performance in such circumstances.
Importantly, the Court clarified that the termination of Celebi’s services and initiation of replacement did not violate national security, as the same workforce continued uninterrupted under the new service provider. With the challenge to security clearance now rejected, the Court held that MIAL is at liberty to finalise the appointment of a new operator.
The Court noted that conciliation efforts are ongoing between Celebi and MIAL, particularly regarding disputes over missing equipment and handover inventories. It permitted both parties to proceed to arbitration if unresolved issues remain. The Court added that if necessary, either side may approach the arbitral tribunal or the Court for specific interim relief at a later stage.
Accordingly, both arbitration petitions were disposed of, with the Court stating that the ad-interim relief was a temporary holding measure, and that no findings on the merits were being expressed at this stage. The order permits immediate operational transition and reinforces the finality of the Delhi High Court’s decision on security revocation.
Appearances
Petitioner: Mr. Chetan Kapadia, Senior Advocate a/w. Mayank Samuel, Neelanshu Roy and Drumi Nishar i/b Mayank Samuel (Sirius Legal)
Respondent: Mr. Vikram Nankani, Senior Advocate a/w. Mr. Sumeet Nankani, Ms. Shoma Maitra and Mr. Nipeksh Arvind Jain i/b Wadia Ghandy & Co.