BPCL, Kingfisher reach out-of-the-court settlement on dues
: Bharat Petroleum Corporation Ltd (BPCL) and Kingfisher Airlines have reached an out-of-court settlement to resolve their dispute over jet fuel outstanding amount of Rs 314 crores, the Bombay High Court was informed.
By PTI |
MUMBAI: Bharat Petroleum Corporation Ltd (BPCL) and Kingfisher Airlines have reached an out-of-court settlement to resolve their dispute over jet fuel outstanding amount of Rs 314 crores, the Bombay High Court was informed on Wednesday.
Both parties told the court that they have arrived at a settlement following which a petition was filed by BPCL seeking arbitration in the matter.
According to the mutual understanding between the litigants, the outstanding amount will be paid by Kingfisher within a year in monthly instalments along with a down payment.
However, the down payment and instalment amount was not immediately known.
The state-run oil firm had petitioned the high court to appoint an arbitrator to resolve the issue, after Vijay Mallaya-owned private airline failed to clear its dues of Rs 314 crore, including Rs 290 crore as principal amount, to BPCL.
Kingfisher had on October 8 offered the oil company a payment of Rs 10 crore every month, as a settlement arrangement, which was turned down by BPCL.
While arguing the arbitration petition, earlier filed by BPCL against Kingfisher, the oil PSU said the offer of Rs 10 crore was not acceptable and asked the airline to come out with a substantial offer.
Both parties told the court that they have arrived at a settlement following which a petition was filed by BPCL seeking arbitration in the matter.
According to the mutual understanding between the litigants, the outstanding amount will be paid by Kingfisher within a year in monthly instalments along with a down payment.
However, the down payment and instalment amount was not immediately known.
The state-run oil firm had petitioned the high court to appoint an arbitrator to resolve the issue, after Vijay Mallaya-owned private airline failed to clear its dues of Rs 314 crore, including Rs 290 crore as principal amount, to BPCL.
Kingfisher had on October 8 offered the oil company a payment of Rs 10 crore every month, as a settlement arrangement, which was turned down by BPCL.
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While arguing the arbitration petition, earlier filed by BPCL against Kingfisher, the oil PSU said the offer of Rs 10 crore was not acceptable and asked the airline to come out with a substantial offer.
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