Another Blow To Kingfisher, To Fork $90 Million In Settlement

The High Court of UK granted BOC Aviation which is based in Singapore an approximate claim of $90 million against Vijay Mallya’s inoperative Kingfisher Airlines in a legal proceeding.

Another Blow To Kingfisher, To Fork $90 Million In Settlement

This case on Mallya that is related to his loan fraud which is approximately Rs 9,000 crore goes back to Westminster Magistrates Court and concerns the aircrafts leased by Kingfisher Airlines in 2014. The judgment was made against the defendants due to lack of proper prospects on resisting the claim.

An agreement was made between BOC Aviation which leases aircraft and Kingfisher Airlines for leasing 4 planes out of which only 3 were delivered, the fourth one was not delivered as no payment was made in advance as per mentioned in the agreement of lease. The claim is made by BOC Aviation as a Security Deposit of the leased planes.

The judgment passed by Justice Picken states that both United Breweries and Kingfisher Airlines must pay the claim to BOC Aviation which is $ 90 million that includes the delayed amount to be paid along with interest and legal cost.

Mallya was deported in April last year by Scotland Yard and he is on a bail bond of £650,000 and he arrives for his trial since December last year. Kingfisher has not yet responded to this. The final hearing on the case is scheduled in March and the judgment may come in May.

The defense has given a set of evidence to prove that the failure of Kingfisher Airlines was due to the crisis in Global Market and not due to his unwillingness in repaying the loan. On the other hand, the Crown Prosecution Service which represents Government of India has evidence that states Mallya has deceived and procured loans. There is another lawsuit which orders seizing Mallya’s assets worth $1.5 Billion.

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