ModiLuft has filed an appeal in the Supreme Court against the order of the Bombay High Court appointing a receiver for the disputed aircraft and allowing Deutsche Lufthansa AG to take the planes with certain conditions.
ModiLuft alleged, before the bench consisting of Justice A S Anand and Justice K T Thomas, that the lease agreement for the aircraft were illegally terminated on May 29 last year.
It claimed it had paid all dues to the German company.
The contract was for a period ending May next year and therefore ModiLuft was entitled to fly the aircraft till then, senior counsel Kapil Sibal argued.
However, the German company disputed the claim and asserted that the Indian firm had failed to pay the lease amount.
Therefore, it was legal to terminate the contract, they added. Senior counsel F S Nariman said that leaving the planes here meant a loss of Rs 6.5 lakh each day on maintenance alone.
The judges suggested the aircraft could be allowed to remain in the country if ModiLuft was willing to pay the ground and air insurance and maintenance charges.
The company expressed it willingness to do so.
Lufthansa, on the other hand, said if it was allowed to take the aircraft, it would pay compensation if ordered by the court.
However, the judges adjourned the hearing at this point to enable all parties to come to an equitable solution.
