Friday, November 10, 2017

NCLT orders insolvency process against regional airline Air Carnival

The Chennai bench of the National Company Law Tribunal (NCLT) has ordered the corporate insolvency resolution process against grounded regional airlines Air Carnival, admitting a petition filed by its erstwhile employee Murali Sundaram who alleged default of wages to the tune of  Rs 48 lakh.  The NCLT has appointed Kavitha Surana as interim resolution professional (IRP), who has been asked to take control of the company’s management. In the petition filed at NCLT praying for initiation of insolvency process, Sundaram had submitted that he was appointed director of operations in December 2015.
However, Air Carnival failed to provide remuneration from August 2016 amounting to Rs 30 lakh. It was further submitted that a sum of Rs 11.46 lakh was incurred as travel expenses for official purpose and it was not reimbursed by the company. He pointed out that the total outstanding amount due in respect of remuneration and travel expenses as on  April 2017 was Rs 48.41 lakh plus interest. Based in Coimbatore with a hub at the Chennai international airport, Air Carnival was founded in 2013 as a charter airline. Later, it got licence from the DGCA to start regional operations within south India, which were launched in July 2016.  Air Carnival, promoted by Coimbatore Marine College Group, grounded its operations on April 6, 2017, reportedly owing to financial problems.
10/11/17 Sajan C Kumar/Financial Express

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