BPCL, Kingfisher seek out-of-court settlement of fuel dues row

Mumbai: Efforts are being made by Kingfisher Airlines and Bharat Petroleum Corporation Ltd (BPCL) for an out-of-the-court settlement to their legal dispute over aviation turbine fuel dues amounting to Rs314 crore.
"The two parties are working out a formula which would be mutually acceptable," sources close to development told PTI here today. The Bombay High Court was to hear the dispute today but as both the sides had not arrived at any understanding, the matter was adjourned to November 3 without any arguments.
The state-run oil firm had petitioned the high court to appoint an arbitrator to resolve the issue, after the private airline failed to clear its dues of Rs314 crore, including Rs290 crore as principal amount, to BPCL.
Kingfisher had on October 8 offered the oil company a payment of Rs10 crore every month, as a settlement arrangement, which was turned down by BPCL.
15/10/09 PTI/Daily News & Analysis

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Categories: Kingfisher Oct 2009