Kingfisher asked to return parts leased from Lufthansa

The Delhi High court has directed Kingfisher Airlines to return all components leased out to it by Lufthansa Technik India following a petition by the latter that the carrier was using them even after it breached an obligation to make timely payments.

A single member bench of Justice S N Dhingra directed Kingfisher Airlines to make an inventory of all components leased out to it by Lufthansa Technik while receiving technical support for its fleet.

"An inventory of the home based components (those used in maintenance, overhaul and repair) leased out by Lufthansa Technik to Kingfisher Airlines under the agreement in question be prepared," Justice Dhingra said while passing an interim order.

In its petition Lufthansa Technik said Kingfisher terminated the agreement on August 18.

Lufthansa Technik India also alleged that Kingfisher Airlines "breached its obligation to make timely payment to it as per terms and agreement".

According to the company, Kingfisher has not paid dues of Rs 17.7 crore for the months of July, August and September this year despite enjoying technical support.

"Kingfisher Airlines after preparation of the inventory shall hand over all those components, which are under the lease and are intended to hand over by it," the court added while appointing a retired judge to make inventory.

The court also issued notice to Kingfisher Airlines and directed it to file a reply over the allegations made by Lufthansa Technik, while ordering the carrier to bring all components to Bangalore and Mumbai.

The court has directed to list the matter on October 29 for next hearing.

Lufthansa Technik is the world’s leading provider for maintenance, repair and overhaul (MRO) of airplanes, components and engines. It had entered into an agreement with Kingfisher Airlines in March 2005 for undertaking MRO activities for ten years.