The Karnataka High Court on Friday ordered winding up of the now-defunct Kingfisher Airlines Ltd for failing to pay $6 million (Rs 41 crore) dues to a British firm that supplied aircraft components to it.
Pronouncing the order, Justice Vineet Kothari directed the official liquidator to take possession of the grounded airline's assets in accordance with the provisions of the Companies Act, 1956 and submit a compliance report to the court within four weeks.
British aerospace firm Aerotron plc filed a writ petition in the high court in 2012 for the non-payment of dues, including interest by the cash-strapped airline despite many reminders.
Though the ailing airline admitted the liability and signed an agreement with Aerotron to settle the dues in February 2012, it failed to abide by it.
"Admittedly, the said amount has not been paid within the time provided in the agreement between the contending parties or even thereafter. Thus, satisfied that KFA was unable to pay its debts, the court orders the winding up of the airline company," said the judgement.
Aviation regulator Directorate General of Civil Aviation cancelled the airline's flying licence on October 21, 2012 after it suspended operations since October 1 following an indefinite strike by its employees, including crew.