Mumbai Hc Orders Return Of Disputed Planes To Lufthansa

The Mumbai High Court yesterday directed the court receiver to return three Boeing 737-200s, leased to ModiLuft, to German airline Lufthansa.

Lufthansa and ModiLuft were engaged in a protracted legal battle on the issue of return of the aircraft after the two airlines parted ways last year owing to serious differences arising out of payment of dues by the Indian private airline.

The two-member bench, consisting of Chief Justice M B Shah and Justice Rebello, turned down ModiLufts request to stay the judgement by four weeks. However, the court is yet to take a decision on a claim of 33 million marks by Lufthansa as outstandings against ModiLuft.

On November 6, 1996, the court had ordered the grounding of Lufthansas three Boeing 737-200s, which were in ModiLufts possession. A court receiver, who was appointed on December 19, 1996, subsequently took custody of the aircraft on February 8 and February 13, 1997. Lufthansa had filed a legal suit against ModiLuft on October 31, 1996.

ModiLuft chairman S K Modi said that Lufthansa had given an undertaking that it would bring the aircraft back to India in case it got back possession of the aircraft. However, Indian laws curb import of planes which are over 17 years. Therefore, Modi alleged that there was a possibility that the German airline had filed a false undertaking.

However, Lufthansa corporate communications director Kavin Sethi said his airline has yet to file an affidavit, which it is required to do within two weeks. The affidavit will give an undertaking that should ModiLuft win its suit against Lufthansa, it would be obliged to bring in either the same, or similar but newer airworthy aircraft for the remaining part of the lease agreement.

Sethi said his airline was delighted with the courts verdict. ``It vindicates our long-maintained stand and rightful ownership of the aircraft under dispute. This path-breaking judgment, delivered in the short period of five months since litigation started in November, sends a clear message to the international business community that India is a safe place to do business, he added.