KARACHI, Sept 16: The Civil Aviation Authority has filed a suit with the Sindh High Court against Bhoja Airline for the recovery of outstanding dues to the tune of Rs73.3 million.
The defendant is a private limited company which was given an airline licence by the Government of Pakistan in November 1992.
The first aircraft with which the defendant began their operations in 1993 was acquired from an Irish leasing company, G. P. A., but it was grounded after only seven months due to non-payment of dues to the Irish company. Later, the defendant airline operated with one aircraft acquired from Lithuania and another from the Russian Federation. However, these two were withdrawn by the respective owners on account of non-payment of dues on 3. 6. 2000 and 25. 10. 2000. Thereafter, the defendant has ceased all airline operations. The Air Operator Certificate of the defendant also expired on December 31, 2000 in the normal course.
The plaintiff claims that as of September 1999 the defendant began defaulting on their payments and the total dues accumulated against the defendant had reached Rs80,636 million.
During the initial default period, the defendant repeatedly sought concession in terms of partial payments and even entered into an agreement dated March 11, 2000, acknowledging that a sum of Rs23,464,898 had become payable for the period up to December 1999 and that the same would be paid by the defendant in six equal monthly instalments.
However, the defendant did not honour the agreement. It also continued to default on current monthly payments after the March 11, 2000 agreement.
A further concession was allowed by the plaintiff vide letter dated July 17, 2000 to the defendant, but the same was also allegedly abused and again cheques given by the defendant were not honoured by banks.
According to plaintiff in view of such serious state of wilful default, a criminal complaint was made.
The defendant filed a suit against the plaintiff and also obtained ad interim injunction orders. But after the interim order was not extended by the court on May 7, 2001, the defendant withdrew the suit.
Finally, after due notice the premises in possession of the defendant were taken over by the plaintiff on May 14, 2001. It is the plaintiff’s claim that the auditors appointed in suit No 1130 of 2000 also confirmed that the defendant owed the plaintiff a sum of Rs72,076.316 for the period September 1999 to September 2000.
The defendant soon filed another suit. The SHC vide its order dated Sept 28, 2001 determined, inter alia, that the defendant should pay Rs10,000,000 and the plaintiff would renew the licence of the premises in occupation of the defendant and also consider the renewal of licence and Air Operator Certificate as long as all current liabilities were paid and the defendant met technical requirements in accordance with the CAA Rules and Regulations.
Furthermore, it was ordered that 5 per cent of the value of tickets sold by the defendant would be paid to the CAA for settling the outstanding dues.
Although Rs10,000,000 were paid by the defendant, reducing their liability to Rs73.3 million, but it failed to take necessary action which would allow the settlement of its full liability.
An application for renewal of Air Operator Certificate was made by the defendant on Jan 12 this year. Formalities required to process the said application were not completed.
