The Madras High Court on Monday said that the Airports Authority of India (AAI) can appoint a ground handling contractor at Chennai airport, in place of Celebi Ground Services Chennai Pvt. Ltd, only through a public tender. However, the tender must clearly state that the finalisation of the contractor will be subject to the outcome of proceedings pending before the Delhi High Court and the Madras High Court regarding the cancellation of Celebi’s security clearance.

The court was hearing a petition by Celebi against the cancellation of the agreement. The court adjourned to July 7 for filing a counter by AAI.

The court recorded AAI’s undertaking that they shall not use the equipment /software belonging to Celebi, whose Concession Agreement signed on April 2023 with AAI was cancelled by the Bureau of Civil Aviation Security.

“The AAI will have to necessarily appoint a third Ground Handling Contractor at the Chennai airport on account of necessity. If the same is not appointed, they would submit that public interest will be defeated as the smooth operations of the Chennai Airport will greatly be affected,” the order by Justice Abdul Quddhose said.

To protect the interest of Celebi pending the applications, the company is also permitted to take inventory of their equipment after getting prior approval from the respondent, the court added, stating that AAI shall not make any objection for Celebi to take inventory.

Published on June 10, 2025