HC reprieve for Paramount

The Delhi High Court has allowed Paramount Airways, a Chennai-based carrier, to use its three aircraft, grounded following de-registration by government over a payment dispute, for ferrying passengers.

Allowing Paramount’s plea, a single-member bench of Justice Khanna stayed the order passed by the Directorate General of Civil Aviation (DGCA) on December 4 till the next date of hearing.

He also issued a notice to GE Capital Aviation Services Ltd and Celestial Aviation Trading and sought their responses by the next date of hearing. Last week, DGCA had de-registered three 72-75 seater Embraer planes of Paramount Airways following a dispute over payment according to the lease agreement with the GE Capital Aviation Services Ltd and Celestial Aviation Trading.

The de-registration of the three planes has caused disruption in services of the Chennai-based airline. Earlier, GECAS (GE Commercial Aviation Services) moved London court alleging non-payment of dues, though the airline said it had made a $15 million deposit to GECAS, in which $5 million were deposit and the rest maintenance reserves.

In its petition, Paramount Airways submitted the Queen's Bench in London has already refused to entertain the plea of GECAS and Celestial Aviation Trading. The court has directed listing of the matter on December 21 for next hearing.