Holding that Paramount Airways Private Ltd. has become commercially insolvent as it is unable to pay its dues to five companies, the Madras High Court appointed a provisional liquidator for the ailing airline on Friday.
Naming the Official Liquidator, Madras High Court, as Provisional Liquidator for the company, Justice S. Rajeswaran directed the liquidator to take charge of its assets. The Ex-Directors of the company should file their statement of affairs before the official liquidator within 21 days.
Mr. Justice Rajeswaran passed the order on company petitions by Taj Madras Flight Kitchen Pvt. Ltd., here and four others, seeking the winding up of Paramount and appointment of a liquidator.
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The judge said that in all the company petitions, the documents filed would clearly show that the airline had accepted its liability, but did not come forward to make the payments despite repeated reminders and personal visits by the petitioners.
The statutory notice sent by the companies had been replied to by Paramount Airways, but was done by raising untenable and unsustainable grounds. The audited balance sheets showed that the company had incurred huge losses. Moreover, it had not even furnished the accounts to the petitioners as demanded by them. In fact, even before the court, in some of the applications, counsel representing the airways took time on the ground that the matter was being settled by compromise between the parties. But till date, the sum due to the petitioners had not been paid. On the other hand, the company sought further time for settling its dues.
“Therefore it is construed from the available facts and circumstances and the documents produced before this court, that the respondent company (Paramount Airways) has become commercially insolvent and it is unable to pay its dues to the petitioner herein,” the judge said. He admitted the petitions and ordered notice to the respondent and Registrar of Companies, Chennai. The matter has been posted for June 10.
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