Justice Ananda Byrareddy admitted the petition filed by a consortium of banks led by State Bank of India after he determined that the claim of the creditors that the company was commercially insolvent is bonafide and hence unable to pay off its dues.
Kingfisher Airlines has been sued in various courts for non-payment of dues to its creditors. The consortium of 17 banks have claimed an outstanding of over Rs 7,000 crore from the carrier.
KFA has been grounded since October 1 last year.