The court ruled that the respondent can participate in airport tenders despite existing agreements, emphasizing that competition should not be hindered.

JUDGMENT :

SUBRAMONIUM PRASAD, J.

1. The present applications under Section 9 of the Arbitration and Conciliation Act, 1996 has been filed seeking directions to restrain the Respondent from participating in the tender process for Ranchi and Vijayawada Airports initiated by Airport Authority of India (“AAI”) vide Notification dated 22.10.2024 and 23.10.2024 and for restraining the Respondent from participating in any tender process for Ground Handling Services at any Airport managed by the AAI.

2. Since the reliefs sought for in both the Petitions are common and the counsels appearing for the parties are the same, both the Petitions are being heard together with the consent of the parties.

3. Arguments have been primarily addressed in O.M.P.(I) (COMM.) 385/2024. The facts, in brief, leading to the filing of O.M.P.(I) (COMM.) 385/2024 are as under:-

a. It is stated that in 2018-2019, the Petitioner No.1 and the Respondent decided to collaborate for providing Ground Handling Services at various airports across India. It is stated that a tender was issued by the AAI for submission of bid regarding providing of Ground Handling Services for Bagdogra Airport. It is stated that the Petitioner No.1 and Respondent submitted a bid and succeeded in in the tender for providing Ground Handling Services at the Chennai Airport, Goa Airport, Bagdogra Airport, Udaipur Airport and Jodhpur Airport.

b. It is stated that a Shareholders' Agreement dated June 2021 was entered into between Petitioner No.1 and the Respondent for creation of a Special Purpose Vehicle which is the Petitioner No.2 herein for providing the Ground Handling Services at Bagdogra Airport.

c. The salient Clauses of the Shareholders' Agreement entered into between Petitioner No.1, Petitioner No.2 and the Respondent which is a tripartite agreement, reads as under:-

“WHEREAS

A. LAS is engaged in providing ground handling services, passenger handling, ramp handling, cargo handling and aircraft cleaning services for domestic and international flights to various airlines since the past 25 years having its operations at 5 major airports in India.

B. Goldair has been providing ground handling services, passenger handling, airport lounge services, ramp handling, aircraft cleaning services, de-icing services and execution aviation handling for domestic and international flights to airlines for the past 25 years having its operations m Greece, Bulgaria and Cyprus.

C. The Airport Authority of India ("AAI") vide its invitation to bid/tender (bearing e-bid invitation no. 2020_AAI_ 43720_1) dated 30^th March 2020 had invited potential bidders to submit their bid to carry out ground handling services at the Bagdogra Airport at Bagdogra, India ("Airport")

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F. In accordance with the provisions of the Bid Documents (as defined below), LAS and Goldair established the Company in Bagdogra, India to provide the Services (defined below) at the Airport.

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“Airport” means the Bagdogra Airport at Bagdogra India;

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“Business" means the business of providing Services at the Airport

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“Services” means the services that have been set out in the Bid Documents including ramp handling services (aircraft handling, aircraft services, aircraft cleaning, loading, unloading, cargo handling services at air site and support services) and traffic handling services (terminal services, flight operations, surface transport and representation services).

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3.3.2 Nothing in this Agreement restricts the right of any Shareholder to conduct its own business activities in any way 1t sees fit The Shareholders undertake not to compete with each other and the Company in the provision of Services at the Airport

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Non-Compete and Exclusivity LAS and Goldair hereby agree and undertake that during the time such Party (i.e. LAS or Goldair) hold any