Kingfisher Airlines must pay Singapore based BOC Aviation an estimated $90 million in claims. S pokesperson for BOC Aviation in Singapore said “We are pleased with the judgment but would not like to comment further at this stage.”
The legal claim relates to a leasing agreement between aircraft leasing company BOC Aviation and Kingfisher Airlines involving four planes, of which three were delivered.
The delivery of the fourth was reportedly withheld due to unpaid amounts due in advance under the lease arrangement. BOC Aviation claims that the security deposit, which is a course of redress in such matters, was also inadequate to cover the payments that Kingfisher was “contractually bound” to make, resulting in the High Court claim in London.
Mallya’s defence team however had deposed some set of witnesses to show that the default by Kingfisher Airlines was the result of business failure within a wider context of a global financial crisis and that its owner had no “fraudulent” intentions.
The judge will hear concluding arguments on the admissibility of some of the evidence presented by the CPS on behalf of the Indian authorities, when the trial returns next month.
According to court documents submitted at the UK High Court last year, the claim brought by 13 Indian banks is expected to come up for a two-day hearing after April 11 in the Queen’s Bench Division of the commercial court in England’s High Court of Justice.