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Chennai HC orders winding up of ex-Paramount Airways' ancillary

Source : BUSINESS_STANDARD
Last Updated: Sat, Apr 20, 2013 05:30 hrs

The high court here has ordered the winding up of Paramount Airways, though the airline, which hasn't operated flight since 2010 but is apparently preparing to resume these, said the verdict referred to an ancillary company with the same name.

In the court's order, it was stated the petitioners included IDBI Bank, Taj Madras Flight Kitchen, GMR Hyderabad and Palmgrove Beach Hotels. Paramount Airways was termed the respondent company.

When contacted, the airline said the order wasn't for the aviation company. A spokesperson said the airline company was named Paramount Airways India Pvt Ltd but the company involved in the litigation was Paramount Airways Pvt Ltd, an ancillary company. He said the ancillary company had been renamed Clove Aviation Ltd and was registered.



"We will take necessary steps to sort this issue," the spokesperson said. He added the airline had 15 per cent stake in the ancillary but had exited even this three years earlier.

Paramount Airways ceased operations in 2010 after a dispute on its leased aircraft; its flying licence was suspended. However, in November 2012, it was awarded a compensation of Rs 1,600 crore through international arbitration, and, in the same month, the aviation regulator renewed its operating licence, paving the way for starting afresh.

The airline had recently said it was preparing to resume operations.

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