The Karnataka High Court on Friday ordered the winding up of Kingfisher Airlines Limited after it failed to pay its dues to a firm in United Kingdom. The beleaguered company was supposed to pay Rs 35 crore to aircraft parts supplier Aerotron, reported PTI.
Justice Vineet Kothar said, “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.” The petition was filed by Aerotron in 2012, alleging that KFA did not cough up the amount despite repeated reminders. The court has also directed the official liquidator to take the assets of the airline and submit a report on this within four weeks, reported The Hindu.
Vijay Mallya’s KFA and Aerotron had signed an agreement on February 24, 2012. According to the deal, KFA had agreed to pay the outstanding amount of Rs 35 crore in monthly instalments between March and October, 2012. Though the closing order came on Friday, KFA had lost its operating permit in October 2012 after the directorate general of civil aviation ordered its suspension following a strike by the employees.
This comes at a time when India has asked UK, where Mallya has been residing, to extradite the industrialist under the Mutual Legal Assistance Treaty as he is owes around Rs 9,000 crore to 17 banks in India. A Delhi trial court, on November 5, had issued a non-bailable warrant against Mallya for evading summons issued to him in connection with a case relating to the violation of the Foreign Exchange Regulation Act.