Karnataka HC orders winding up of Kingfisher Airlines Limited
In yet another jolt to beleaguered liquor baron Vijay Mallya, the Karnataka High Court ordered on Friday winding up of his now-defunct Kingfisher Airlines Limited for non-payment of dues to a UK-based firm.business Updated: Nov 19, 2016 09:46 IST
In yet another jolt to beleaguered liquor baron Vijay Mallya, the Karnataka high court ordered on Friday winding up of his now-defunct Kingfisher Airlines Limited for non-payment of dues to a UK-based firm.
Pronouncing the judgement, Justice V Kothari observed that since KFA did not pay up dues to Aerotron, the court was ordering winding up of the airline company.
“Admittedly the said amount has not been paid within the time provided in the agreement between the contending parties or even thereafter. Thus, satisfied that KFA was unable to pay its debts, the court orders the winding up of the airline company,” Justice Kothari said.
As much as Rs 35 crore was due to be paid by KFA to Aerotron, for which an agreement was entered into between the two companies on February 24, 2012, whereby KFA had acknowledged its liability to pay the outstanding amounts in instalments spread over several months between March and October, 2012.
Justice Kothari observed that the balance sheet of KFA also throws light on health of the company.
British firm Aerotron is an unsecured creditor and supplier of aircraft parts.
The operating permit of KFA, promoted by Mallya, was suspended in October 2012 by aviation regulator Directorate General of Civil Aviation after the airline’s employees struck work.
The licence has since expired.
KFA was never in the profit since its inception in 2005.