Turkey's Celebi moves Madras HC against contract termination by India
What's the story
Turkish aviation firm, Celebi, has challenged the Airport Authority of India's (AAI) decision to terminate its contract in the Madras High Court. The company argued that the termination violates their agreement with AAI. The court has scheduled further proceedings for July 7. Celebi described the revocation of security clearance and contract termination as a case of "complete vendetta" due to its Turkish origins.
Legal proceedings
Court allows AAI to go ahead with issuing public tender
Celebi has moved the Madras HC to contest the revocation of its security clearance and seek interim relief against the appointment of another ground handling agency at the airport. The court allowed AAI to go ahead with issuing a public tender for appointing another agency. However, it directed that this appointment will be subject to final orders from the High Court on Celebi's plea challenging revocation.
Equipment protection
Madras HC assures Celebi it won't be prejudiced
The Madras HC promised to protect Celebi by ensuring that its equipment won't be used by the newly appointed ground handling agency. This is to prevent any potential losses for the company. The court also allowed Celebi to seek contempt action against AAI if this undertaking isn't complied with, and adjourned the hearing till July 7.
Financial implications
Appointment of third parties could 'irretrievably' impact rights: Celebi
Celebi has claimed that the AAI's decision to terminate its contract has caused huge financial losses to the company. The firm contends that this sudden cancellation was done out of "vendetta." It also fears that the appointment of third parties could create rights that would "irretrievably impact" its own rights, pending a verdict in this case.
AAI's defense
Appointment of third party 'necessary' for smooth functioning: AAI
Defending its decision, Solicitor General Tushar Mehta, appearing for the AAI, said appointing a third party is "necessary" for smooth functioning and passenger convenience. He said this would be done through a tender process, subject to the final orders from the Madras High Court on Celebi's plea. Mehta also downplayed the relevance of Bombay HC order as Mumbai airport is run by a private entity unlike Chennai airport which is government-run.