The company also owes Rs. 82 crore worth interest that
accrued on the due amount.
Justice Rekha Palli was hearing an application moved by the company, seeking extension
of time for making the deposit.
Senior Advocate Dayan Krishnan appearing for the airline informed the Bench that they
are in touch with the Secretary to the Civil Aviation Ministry and urged the Court to extend
interim protection until the matter is settled.
"If they are talking to you, they will obviously not take action," the Court remarked at the
outset, expressing disinclination to extend the protection.
Krishnan then urged the Bench to consider the hit taken by the airline industry amid the
Covid-19 pandemic.
He stated that even Supreme Court was cognizant of the debilitated
situation of the industry in the case of Pravasi Legal Cell & Ors. v. Union of India & Ors.
The Top Court had observed therein that the pandemic situation has adversely affected
the economy globally and civil aviation sector is not an exception to the same.
"At best I can adjourn it. I will not extend it, that I am clear. I don't want to jeopardize your
talks," Justice Palli observed.
Advocate Digvijay Rai, while opposing such extension on behalf of the Respondents,
informed the Court that airline has made a representation to the Chairman, AAI and that
will be considered by the management. So far as representations made to the Aviation
Ministry is concerned, Rai stated that he has no instructions to that effect as he does not
represent the Ministry.
The instant application was filed in a plea filed by the airline against AAI which is seeking
to encash its bank guarantee towards repayment of outstanding traffic dues of Rs.
157.16 crores and interest of Rs. 82.19 crores.
10/08/21 Live Law
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