The Supreme Court today stayed the Bombay High Court order that Airport Authority of India (AAI) can't detain aircraft on account of airlines' pending dues.
A Bench comprising Justice GS Singhvi and Justice AK Ganguly stayed the High Court orders on waiving off the bank guarantee of Aer Lingus, which had leased two Boeing 737-200 aircraft to defunct East West (EW) Airlines in November 1992.
The apex court also issued notices to Aer Lingus, directing it to file reply.
During the proceedings, Attorney General Goolam E Vahanvati appearing for AAI said that the authority has the right to detain the aircraft for non-payment of dues.
Earlier, in March this year, the high court while passing the order had held that AAI cannot hold Aer Lingus responsible for various dues not paid by the defunct East West Airlines.
Aer Lingus had leased two Boeing in 1992 to Wahid group of family-promoted East West Airlines. However, lease agreement was terminated in 1996 and the airlines returned the aircraft.
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Later, when Aer Lingus tried to take the planes out of the country, AAI raised an objection, on the grounds that defunct airlines had not settled bills for the services it provided.
Following it, the Irish firm approached the high court, which allowed Aer Lingus to fly the aircraft out of India after furnishing a bank guarantee.
AAI had contended before the high court that as planes were on lease with East West Airlines at the time of pending dues, it has the right to detain them.
However, the high court in its order said that the owner of the aircrafts can not be compelled to pay the dues of the airlines.