Bangalore High Court Orders Winding Up of Kingfisher Airlines

The High Court’s Decision

On Friday, the High Court of Bangalore ordered the winding up of destitute Vijay Mallay’s obsolete Kingfisher Airlines, making way for an official plugger to take in charge of his aid and books of his carrier.

The Bangalore High Court has passed the order on the day when the advocate representing the airline dropped out from the case. The advocate made claims that he did not recieve any sort of instructions from his applicant on behalf of the carrier. Justice Vineet Kothari from the Highcourt took the matter in his hands before passing any statement.

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Reason for the Downfall

What the court heard was overriding on this petition filed by Aerotron which is known to be one of the many creditors of Kingfisher. Kingfisher, inhibited by the bombastic Mallya, now in London, owes an amount counti ng upto 1 billion dollar to Indian banks and several hundred crores to the tax authorities and airports.

SV Rajesh, the lawyer representing Kingfisher said, “The petition was filed by Aerotron in 2012 and we had filed our objections then. The court took note of the objections and passed its order (for winding up).”

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Failure in Response

Moreover, the emails which were sent to the spokesperson of Kingfisher Airlines and Mallaya’s office in London failed to fetch any response.

The Kingfisher Airline was supposed to reimburse an amount of US $6,023,724.01 to Aerotron Ltd back in 2012 and, since then the amount has been constantly rising.

The appellant-company had lifted the Court in 2012 pursuing winding up of the Kingfisher Airline forhaving failed to pay the required amount inspite of frequent reminders.

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Action Plan

In a petition, the Kingfisher Airline had admitted the debt and endorsed a settlement argument to dispose all the amount amounting to US $5 million which is payable to Aerotron Ltd on basis of monthly installments.

Recently, the State Bank of India wrote off Rs 7000 crore in loans to be cleared by Kingfisher Airlines. Not only this, more than 3,000 airline’s employees haven’t been paid salaries before the airline shuts down completely. Well, it seems Vijay Mallya didn’t see this coming!
So, what is your reaction to this news?

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