Private carrier Kingfisher Airlines and PSU firm Bharat Petroleum Corp Ltd are working towards an out-of-the-court settlement on the legal dispute over aviation turbine fuel dues amounting to Rs 314 crore.
"The two parties are working out a formula which would be mutually acceptable," sources close to development told PTI in Mumbai on Thursday.
The Bombay High Court was to hear the dispute today but as both the sides had not arrived at any understanding, the matter was adjourned to November 3 without any arguments.
The state-run oil firm had filed a petition with the High Court to appoint an arbitrator to resolve the issue, after the private airline failed to clear its dues of Rs 314 crore, including Rs 290 crore as principal amount, to BPCL.
On October 8, Kingfisher had offered the oil company a payment of Rs 10 crore every month, as a settlement arrangement, which was turned down by BPCL.
While arguing the arbitration petition, earlier filed by BPCL against Kingfisher, the oil PSU said the offer of Rs 10 crore was not acceptable and asked the airline to come out with a substantial offer.