The AAI moved the court against Mallya and his now- defunct Kingfisher Airlines (KFA) after two cheques, adding up to Rs 100 crore, issued by the airline towards 'landing, parking and terminal navigation' charges were dishonoured.
The AAI claims that KFA owes a total of Rs 250 crore to it.
The court had earlier issued non-bailable warrants (NBWs) against Mallya, chairman of KFA, in July 2016.
AAI lawyers Anil Kathuria and Neeraj Arora told the magistrate's court that the NBWs were not executed and were returned as Mallya is reported to have fled to the UK.
In this situation, the court should issue a 'proclamation' (of he being a proclaimed offender) against Mallya, they said.
The special court for Prevention of Money Laundering Act here has already declared Mallya a proclaimed offender in another case, the lawyers pointed out.
AAI cases cannot be kept pending indefinitely on account of non-appearance of Mallya, the lawyers said.
Magistrate N G Satpute is likely to conduct further hearing in the case in February.
When asked for his comment, AAI chairman Guruprasad Mohapatra told PTI, "AAI is seeking legal remedy in the appropriate case in the cheque-bouncing case.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)