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Celebi Judgment: Delhi High Court Restores Security Clearance, Citing Violation of Natural Justice

 

Date of Judgment: July 7, 2025
Court: Delhi High Court
Justice: Hon’ble Mr. Justice Sachin Datta
Case Nos: W.P.(C) 6758/2025 & W.P.(C) 6759/2025

Background

The Celebi Group, comprising Celebi Airport Services India Pvt. Ltd. and Celebi Delhi Cargo Terminal Management India Pvt. Ltd., had been operating for over 17 years at major Indian airports, including IGI Airport, Delhi. They had been granted security clearances by the Bureau of Civil Aviation Security (BCAS), most recently renewed in November 2022 for five years.
However, on May 15, 2025, BCAS abruptly revoked their security clearances and issued directives requiring Celebi’s employees to be absorbed by other companies (Air India SATS, Bird Worldwide, and GMR Airports). These decisions were made without notice, hearing, or disclosure of reasons, allegedly in the interest of national security.

Key Legal Issues

1. Whether Rule 12 of the Aircraft (Security) Rules, 2023, was violated?
2. Whether principles of natural justice were mandatorily required to be followed before revocation?
3. Whether national security concerns justified bypassing due process?
4. What is the scope of judicial review in cases involving national security?

Court’s Observations

On Principles of Natural Justice

The court underscored the non-negotiable role of natural justice, holding that Rule 12 of the Aircraft (Security) Rules, 2023 mandates:
An opportunity of hearing;
Reasons to be recorded in writing;
Suspension/cancellation only on reasonable grounds involving civil aviation or national security.
Failure to comply with this was held to render the revocation orders void ab initio.

On National Security Exception

While acknowledging that national security is a valid ground to limit procedural fairness in rare cases, the court noted:
“The mere invocation of national security does not oust judicial review… The State must justify both the existence of a threat and the proportionality of its response.”

The court cited Madhyamam Broadcasting Ltd. v. Union of India (2023) to affirm that even national security claims must withstand judicial scrutiny and cannot override fair procedure without demonstrated justification.

On Rule of Law and Arbitrary Action

The court emphasized that arbitrariness is anathema to Article 14, and decisions impacting civil or commercial rights must not be unreasoned or opaque, especially when they have grave civil consequences—such as loss of business and livelihood for thousands of employees.

Judgment Summary

The Delhi High Court:
Quashed the revocation orders dated 15.05.2025;
Held that no justification was provided for bypassing Rule 12 or withholding a hearing;
Directed authorities to restore the security clearance;
Emphasized the importance of procedural fairness and transparency, even in sensitive matters.

Significance of the Ruling

1. Reaffirms Rule of Law: Reinforces that even in matters of national security, constitutional safeguards must be respected.
2. Clarifies Limits of Executive Power: Authorities cannot act arbitrarily or override statutory safeguards by vaguely citing security concerns.
3. Protects Commercial Rights: Corporates, even foreign-owned, are entitled to due process before being stripped of licenses or clearances.
4. Sets Precedent on Rule 12: This judgment will serve as a key reference for interpreting Rule 12 of the 2023 Rules in future disputes.

Conclusion

The Celebi judgment is a landmark reiteration that natural justice is the bedrock of administrative fairness. It warns that secrecy cannot be a substitute for legality, and even national security must be invoked with responsibility and transparency.
The ruling provides robust jurisprudence on balancing state interests with individual rights in highly sensitive domains like civil aviation, setting a high bar for procedural due diligence.

The Judgement 

https://images.assettype.com/barandbench/2025-07-07/tv5eqdza/Celebi_judgment.pdf