2025 Supreme(Online)(Bom) 351240
HIGH COURT OF BOMBAY
HON'BLE SHRI JUSTICE SOMASEKHAR SUNDARESAN
Survee Foods Private Limited – Appellant
Versus
Airport Authority of India Through its Airport Director of body – Respondent
CARBPL/12378/2025
IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION IN ITS COMMERCIAL DIVISION COMM. ARBITRATION PETITION (L) NO. 12378 OF 2025 Digitally signed by M/s. Survee Foods Private Limited … Petitioner SHRADDHA SHRADDHA KAMLESH Vs.
KAMLESH TALEKAR TALEKAR Date:
2025.07.21 Airports Authority of India .. Respondent
20:04:07 +0530 Mr. Rahul Pandey a/w. Suchita Pandey and Pramila Prajapati, for Petitioner.
Mr. Pravin Samdani, Senior Advocate a/w. Shilpa Kapil, Chidanand Kapil, Chandni Bavishi and Priti Karbhai, for Respondent AAI.
CORAM : SOMASEKHAR SUNDARESAN, J.
Date : June 23, 2025 Oral Judgement:
1. This is a Petition under Section 9 of the Arbitration and Conciliation Act, 1996 (“the Act”). The disputes and differences between the parties have arisen in connection with a Concession Agreement dated February 21, 2024 between the Petitioner and the Respondent, Airports Authority of India (“AAI”). The Concession Agreement is scheduled to run for a period of seven years after an initial gestation period of 60 days. It is evident that the Concession Agreement was meant for the Petitioner to run a restaurant / “hang-out” over property at the Juhu Airport, admeasuring approximately 150 sq. mtrs. and the operation of the restaurant commenced sometime in September 2024. The Concession Agreement contains an arbitration agreement.
2. By a notice dated March 22, 2025 (“Termination Notice”), the AAI issued a termination notice essentially stating that the land for which the contract was executed between the parties for operating the restaurant /hangout facility / outlet was strictly confined to such area allotted to the Petitioner, but the Petitioner has gone way beyond the area of 150 sq. mtrs. allocated to him under the Concession Agreement, allegedly occupying 212 sq. mtrs., beyond the area allocated under the Concession Agreement. The operational boundary wall is alleged to have been demolished to enable the alleged trespass by the Petitioner. Consequently, it is claimed by AAI that such conduct is a breach of the Concession Agreement and as a result, the Concession Agreement is sought to be terminated.
3. In passing, the Termination Notice states that “Competent Authority” of the AAI has directed that a preliminary inquiry be conducted into the process of awarding of the contract to look into the allegations of irregularities in the award of the subject contract. This element gains significance because this Petition is but one of several license agreements and concession agreements (ranging from electric vehicle charging stations to restaurants and hang-outs), all of which were terminated on the very same day – March 22, 2025.
4. In all the petitions challenging such terminations, the AAI has taken the primary stance that an earlier airport director of the AAI awarded these contracts without any authority to do so, and that is the core ground for stating that these contracts are liable to be terminated.
5. Mr. Pravin Samdani, Learned Senior Counsel for the AAI submits that there has been a serious lacuna on the part of the erstwhile director who was in charge of the Juhu Airport in awarding contracts to at least eleven persons. The contention is that the said director did not have any authority to initiate the process of granting such concessions in respect of any of the eleven units. 6. It is a matter of record that in at least five other cases, similar Petitions have been filed. By an order dated April 24, 2025, dealing with four such cases, taking on board the consent of the parties and inputs from all parties, all the petitions were disposed of appointing a retired former chief justice of this Court as a Sole Arbitrator to conduct arbitral proceedings. The AAI was then represented by the Learned Additional Solicitor General. By consent, the Section 9 petitions were converted into applications under Section 17 of the Act for consideration by the Arbitral Tribunal appointed therein. It was also recorded that both parties