The Delhi High Court today directed civil aviation regulator DGCA, which has de-registered three aircraft of the Paramount Airways following a dispute, to give a hearing to the Coimbatore-based airline.
A division bench, comprising acting Chief Justice M B Lokur and Justice Mukta Gupta, however, declined to grant any relief to the airline, saying there would be "no stay" on the DGCA's direction to ground its aircraft.
"DGCA would give a personal hearing to the petitioner (Paramount Airways) on March 29 and pass an order within two weeks," the bench directed while dismissing Paramount's petition to stay the DGCA's order de-registering its planes.
The court further said, "we are not staying the order dated December 4, 2009 by the DGCA" through which the regulator had de-registered the aircraft of Paramount.
The court's direction came after the counsel appearing for the airline submitted that DGCA directed them to ground their aircraft without giving them a personal hearing and it was in violation of natural justice.
During the proceedings, Paramount also requested the court to allow its grounded planes to fly as the customers who have booked their tickets were suffering. It further submitted that other airlines have no capacity to accommodate its passengers. However, the court declined to entertain it.
Even Paramount's request to allow it to fly by making payments to the UK-based GE Capital Aviation Service Ltd (GECAS) and Celestial Aviation Trading as per the order of the Queen's Bench of London was rejected by the court.
"It for the Madras High Court to decide. We are not going into it," the court said.
The airlines has decided to challenge the oder to obtain immediate relief. "We are further moving the court to obtain immediate relief," a Paramount spokesperson said.
Paramount has also approached Madras High Court to get relief from the orders of the Queen's Bench, London, which had directed the carrier to make payment of $10 million by March 10.
The court had on March 18 dismissed airline's petition and directed it to stop all flying activities of the three disputed planes by March 19.
Following the order, Paramount had approached Delhi High Court where it had earlier challenged the DGCA's actions.
The DGCA had in December last year de-registered three 72-75 seater Embraer planes of Paramount Airways following the dispute with GECAS, after which the airline got a stay.
On March 15, a single member bench of the Delhi High Court dismissed Paramount's petition and vacated its stay, following which DGCA issued fresh directions on March 18 to ground the planes.
The Coimbatore-based airline has a fleet of five Embraer 170-100LR and 170-200LR jets and had leased three 75-seater planes from GECAS. However, later some dispute had arisen and GECAS sued it in London.
It had also complained to DGCA against Paramount and acting on it, the civil aviation regulator had decided to de-register its planes.
At that time, GECAS' appeal at the Queen's bench was pending. Later, in February it gave its order directing Paramount to pay money to GECAS and Celestial Aviation by March 10.
