Tuesday - February 20th, 2018

Vijay Mallya Loses Another Kingfisher Airlines Case


Vijay Mallya Loses Another Kingfisher Airlines Case

The legal claim relates to a leasing agreement between Kingfisher Airlines and aircraft leasing company BOC Aviation 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.

In his order, Justice Picken awarded BOC Aviation the amount overdue along with interest payments and legal costs, which overall amounts to nearly $90 million.

"The Second Defendant [United Breweries] shall be jointly and severally liable with the First Defendant [Kingfisher Airlines] to pay the Claimants [BOC Aviation] half of the said costs liability," the court order notes.

There was no immediate response from Kingfisher.

The latest ruling comes weeks before India's extradition case against Mallya is set to come up for one of its final hearings before Chief Magistrate Emma Arbuthnot on March 16, with a judgment expected in May.

The businessman remains on a 650,000-pound bail bond, extended until April 2 at the last hearing in the extradition case in January.

Mallya had been arrested on an extradition warrant by Scotland Yard in April last year and has since been appearing for his extradition trial, which opened on December 4 last year to establish if he can be forced to return to India to face charges of fraud and money laundering involving Kingfisher Airlines' default of bank loans worth nearly Rs 9,000 crore.

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