JUDGMENT :

SANDEEP V. MARNE, J.

1) The issue involved in the Petitions is about arbitrability of disputes concerning termination of licenses to occupy airport premises by the Airports Authority of India.

2) There are two Petitioners before this Court-Survee Shidal and Survee Foods Private Limited, who are aggrieved by termination notices issued by the Airports Authority of India (AAI) on 22 March 2025 terminating the agreements granting licenses for running Restaurants cum Hangout formats at Juhu Airport. They have accordingly filed Petitions under Section 9 of the Arbitration and Conciliation Act, 1996 (Arbitration Act) seeking interim measures in the form of stay on termination notice dated 22 March 2025 and for allowing them to continue operations of Restaurant-cum-Hangout format as per the Agreement executed in their favour.

3) M/s. Survee Shidal has also filed Commercial Arbitration Application (L) No.38289 of 2025 under Section 11 of the Arbitration Act, for appointment of the arbitrator. Since the Respondent/AAI has raised objection about arbitrability of the disputes relating to termination of license and eviction from Airport premises, all the three proceedings are taken up for analogous hearing.

FACTS

4) Briefly stated, facts of the case are that AAI issued Notice Inviting Tender for operation of restaurant-cum-hangout format in premises admeasuring 150 sq. mtrs. and 630 sq. mtrs at Juhu Airport located at Juhu Airport, Vile Parle (W) Mumbai. Petitioners submitted their bids in pursuance of the Notice Inviting Tender. The bids of the Petitioners were accepted and AAI issued Letters of Intent to Award (LOIA) in favour of the Petitioners. LOIA dated 1 March 2024 was issued in favour of the Petitioner-M/s. Survee Shidal in respect of the premises admeasuring 630 sq. mtrs for a period of 7 years. AAI granted LOIA dated 13 February 2024 in favour of Petitioner-Survee Foods Private Limited in respect of the premises admeasuring 150 sq.mtrs for a period of 7 years. In pursuance of the LOIA, parties executed Concession Agreements/License Agreements dated 21 February 2024 and 15 March 2024 under which Petitioners were granted licenses for a period of 7 years after completion of gestation period of 60 days or from commencement of operations, whichever was earlier. Petitioners paid amount of security deposit to the AAI. Both the Petitioners were put in physical possession of the licensed areas admeasuring 630 sq.mtrs and 150 sq.mtrs. The Petitioners thereafter started construction and fit out work in the premises. While the construction work was in progress, Municipal Corporation of Greater Mumbai (MCGM) issued notices under Section 354A of the Mumbai Municipal Corporation Act, 1888 (MMC Act) alleging unauthorised construction. Petitioner replied to the notices. The MCGM thereafter issued stop work notices to the Petitioners on 10 January 2025. Petitioners filed L.C. Suit No.123 of 2025 before the City Civil Court, which are pending and in which interim injunction is granted restraining the MCGM from taking steps in respect of the construction.

5) On 22 March 2025, AAI issued notices terminating the Concession Agreement contending inter alia that officer executing the contract was not empowered to allot the land. It was further alleged that the structure is constructed by the Petitioners inside the boundary wall by trespassing into prohibited area and by encroaching upon the larger land than the one which was allotted. The Petitioners are aggrieved by Termination Notice dated 22 March 2025 and have accordingly filed Section 9 Petitions seeking interim measures. By order dated 23 June 2025, this Court directed maintenance of status-quo, which protection continues to operate till date.

6) In the meantime, M/s. Survee Shidal has filed Commercial Arbitration Application (L) No.38289 of 2025 under Section 11 of the Arbitration Act for appointment of an Arbitrator. The Respondent-AAI has appeared in the Petitions and filed affidavit-in-reply