Ia Faces Closure Suit Over Interest Default

A struggle between Indian Airlines (IA) and city-based Tulikas Icecream Pvt Ltd is on over default on the part of IA in the payment of 21.5 per cent interest on dues to the tune of Rs 2.64 lakh.

The interest has accumulated over three years.

Tulikas has threatened to slap a winding up petition, for the second time, against the national carrier if Indian Airlines is unable to pay its outstanding dues within three weeks of the issuance of a legal reminder by the icecream company.

The legal reminder was issued on December 3, 1996.

While IA made a part payment of Rs 1.99 lakh in 1995 on the Rs 2.64 lakh pending payment it refused to pay the interest on the basis that it was not responsible for the interest accumulated over the period. Incidentally, IA paid the Rs 1.99 lakh only under a similar threat of a winding up notice which was served in July 1995.

 

The total amount currently pending with Indian Airlines is Rs 1,11,615. 57, which is inclusive of the interest, some short payments on the original amount of Rs 2.64 lakh and sample dues.

Indian Airlines has not yet formally responded to the latest threat of a winding up notice issued to it by Tulikas.

An Indian Airlines spokesperson told Business Standard that the allegations were baseless.

Tulikas director Anuvrat Pabrai said Indian Airlines has consistently refused to pay the interest amount on the grounds that the provisions of the Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993, which has been invoked by Tulikas, do not apply to it.

Indian Airlines has also put forward the argument that no provision for interest had been included during the signing of its one-year contract with Tulikas for the supply of in-flight icecreams to cater to the eastern region.

The national carrier further asserted that at the time of signing of the contract Tulikas had made no representation to the effect that it was an ancillary industry, said Pabrai.