Setback for Celebi: Delhi HC dismisses Turkey-based firm’s plea seeking to set aside order revoking its security clearance

The centre, through its Ministry of Civil Aviation, had revoked the security clearance granted to the firm on May 15 “with immediate effect in the interest of National Security”. The decision had come against the Turkey-based company following backlash in India over Turkey’s support to Pakistan in the India-Pakistan conflict.

The Delhi HC’s verdict will have a direct bearing on other litigations by the company and its subsidiaries where it is challenging cancellation of its contracts by the airports where it was servicing, before Madras HC, Bombay HC and Gujarat HC. The petitions were kept pending at these three HCs for final disposal, in light of pending adjudication on the security clearance revocation issue until now.

Justifying the Centre’s action against the firm, the court recorded, “The State/respondents are indeed justified in taking prompt and definitive action so as to completely obviate the possibility of country’s civil aviation and national security being compromised. Ground handling services at airports offer deep access to airside operations, aircrafts, cargo, passenger information system and security zones. Such unbridled access to vital installations and infrastructure naturally elevates the need for strict security vetting for operators, and their foreign affiliations. This is particularly true in the wake of contemporary challenges faced by the country in the security domain, and the escalations/incidents witnessed in the recent past, with geopolitical factors at play.”

While the firm had argued that it was not given an opportunity of hearing which goes against the principles of natural justice, relying on domestic and foreign jurisprudence, Justice Sachin Datta reasoned in its order, “…the principles of natural justice, though sacrosanct, have to be moulded and applied depending upon the peculiar factual context of each case…In the present case, indisputably, the petitioners were not afforded opportunity of hearing before revocation of the security clearance granted to them…the principles of natural justice must yield to preservation of natural security. This position has been affirmed and recognised not only by the Courts in India, but also in other jurisdictions such as the UK and USA.”

“it indeed transpires that there are compelling national security considerations involved, which impelled the respondents to take impugned action. While it would not be inappropriate for this Court to make a verbatim reference to the relevant information/inputs, suffice it to say, that there is a necessity to eliminate the possibility of espionage and/or dual use of logistics capabilities which would be highly detrimental to the security of the country, especially in the event of an external conflict…Suffice it also to say, that there are impelling geo-political considerations, impinging upon the safety of the country, which are also involved…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 Datta further held.

The firm has challenged the contract cancellations before the Madras HC, Bombay HC and Gujarat HC, apart from challenging the security revocation in Delhi HC.

While the pleas are pending at Gujarat HC and Bombay HC, in light of the orders being reserved at Delhi HC in May, the Madras HC in June had granted interim protection to Celebi Ground Services Chennai Pvt. Ltd. under Section 9 of the Arbitration and Conciliation Act, 1996, while keeping their petition pending for final disposal, subject to Delhi HC’s decision.

The firm was incorporated in India in 2009 as Celebi Ground Handling Delhi Private Limited and had subsequently changed its incorporated name to Celebi Airport Services India Private Limited in 2018. The company was granted security clearance in 2022 which was to be valid for a period of five years.

The firm, in a communication to several authorities, including to Ministry of Civil Aviation, the Bureau of Civil Aviation Security as well as the Ministry of Home Affairs on May 14, had stated that while its ultimate parent holding company — Celebi Aviation Holding — is incorporated in Turkey, over 65% of its ownership rests with international institutional investors, adding that in India, it is “very much a domestic operation”. It also stated that it has invested over 250 million USD in India and has been operating in India since the past 17 years.