Mallya Case: DRT asks Airbus to deposit Rs 192.51 cr

October 18, 2016 20:47

The Debt Recovery Tribunal today directed European aircraft manufacturer Airbus to deposit with it Rs 192.51 crore toward pre-delivery payment made by a consortium of banks for purchase of planes by now defunct Kingfisher Airlines controlled by Vijay Mallya.

Passing orders on an amended plea filed by the consortium led by the Oriental Bank of Commerce for recovery of the payment, DRT Presiding Officer K Srinivasan directed Airbus to deposit Rs 192.51 crore from any source within eight weeks.

The Oriental Bank of Commerce, Corporation Bank and United Bank of India, had submitted that they made a pre-delivery payment of Rs 192.51 crore to Airbus on behalf of Kingfisher Airlines after both parties had signed a purchase agreement in 2005.

But the planes were not delivered. Since the Airbus had failed to repay the pre-delivery payment, the consortium made GoAir and Indigo as parties in the case by filing applications under garnishee proceedings to recover the money.

It had sought a direction to the budget carriers to deposit the money to be paid by them to Airbus with it, under garnishee proceedings.

A garnishment is a means of getting a monetary judgement against a defendant by ordering a third party (the garnishee) to pay the money, otherwise owed to the defendant, directly to the plaintiff.

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