BackKingfisher Airlines approaches Delhi HC against aviation ministry, Sebi, NSE and BSE
Kingfisher moves the HC to restrain Sebi, BSE and NSE from taking action against it for non-compliance with provisions of its listing pact
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New Delhi: The grounded Kingfisher Airlines Ltd on Wednesday moved the Delhi high court to restrain the Securities and Exchange Board of India (Sebi), the BSE and the National Stock Exchange from taking action against it for non-compliance with certain provisions of its listing agreement.
The airline also sought a court directive to the ministry of civil aviation to consider its application for security clearance to Lalit Bhasin for appointment as a director of the company.
The Directorate General of Civil Aviation (DGCA) requires security clearances for directors and chairman/chief executive officer for the grant of a no-objection certificate to an airline to operate as a scheduled operator.
Kingfisher’s operating licence was suspended in late 2012 by the aviation regulator after it was grounded by a strike by the airline’s employees to protest non-payment of salaries. The permit has since expired although it can be renewed within two years.
According to a petition filed by the company, it approached the civil aviation ministry for security clearance for Bhasin on 21 March 2012 but despite subsequent reminders, no action had been taken.
The company has attributed its failure to declare its financial results for the year that ended on 31 March to the ministry’s failure to consider the application of Bhasin’s security clearance. That led to the company failing to perform its obligations under listing agreements it had entered into with the NSE and the BSE, it said.
The BSE has fined the company ₹ 61,798 for failing to declare its financial results and ₹ 84,270 for non-compliance with listing conditions.
On Wednesday, the matter was adjourned to 5 August.
The Mumbai-based airline had accumulated losses of ₹ 16,023.46 crore as of 31 March 2013 and its net worth was a negative ₹ 12,919.82 crore. Kingfisher Airlines, launched in 2005, has never made a profit.
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