HC moved to seize Paramount aircraft
CHENNAI: ECC Leasing Company Limited in Dublin-2, Ireland, has moved the Madras High Court to appoint an advocate-commissioner to seize, wherever found, its two aircraft leased out to Paramount Airways in Guindy and to remove all obstructions including breaking open any lock that might be put in and avail of police protection, if necessary, to take possession of the aircraft and the equipment documented and hand over the same to its custody.
According to the applicant, it had given in lease two Embraer 170 LR aircraft as per the agreement entered into with Paramount Airways on May 5, 2005, for five years. The Paramount was to pay a monthly rental of US $ 1,85,000. ECC issued a notice of termination on July 31, 2009, to Paramount, as the latter defaulted in paying the rentals.
It also directed Paramount to redeliver the aircraft to the applicant at OGYA in Portugal. However, Paramount made a part payment of US $ 11,09,780 on August 5, 2009, and till date US $ 12,58,085 remained due. Paramount also did not renew the stand-by letter of credit or replenish the deposit in cash of US $ 11,10,000, as required under the lease agreement.
When the matter came up before Justice N Paul Vasanthkumar last week, R Krishnamoorthy, senior counsel for Paramount, sought time to file the counter. He also stated that two months arrears would be paid to ECC on or before September 30.
Recording the submission, the judge adjourned the matter till October 1, with a direction to ECC to receive the said amount without prejudice to the rights of both the parties
HC moved to seize Paramount aircraft