IATA can encash bank guarantees provided by Cox & Kings: Bombay HC

The Bombay High Court has allowed International Air Transport Association (IATA) to encash bank guarantees provided by tour operator Cox & Kings. The court on Wednesday vacated its interim stay on invocation of bank guarantee after the tour operator withdrew its commercial arbitration petition challenging IATA’s action.

Last month, IATA suspended Cox & Kings from selling airline tickets on credit after it defaulted on commercial paper payments. The tour operator had moved Bombay High Court earlier in the month and secured an interim relief against invocation of bank guarantees. The tour operator’s sister concern ezeego1 also moved court on similar grounds