Airlines woes continue as BPCL files winding up petition against Kingfisher

As Jet Airways continues to face an impasse with its striking pilots, Vijay Mallya-owned Kingfisher Airlines now prepares for a court battle. Government-owned Bharat Petroleum Corp. Ltd (BPCL), represented by Udwadia & Udeshi, has sought the winding up of Kingfisher in a petition filed before the Karnataka High Court. BPCL alleges that Kingfisher has been unable to pay jet fuel dues amounting to Rs. 314 crore ($65 million)..As Jet Airways continues to face an impasse with its striking pilots, Vijay Mallya-owned Kingfisher Airlines now prepares for a court battle. Government-owned Bharat Petroleum Corp. Ltd (BPCL), represented by Udwadia & Udeshi, has sought the winding up of Kingfisher in a petition filed before the Karnataka High Court. BPCL alleges that Kingfisher has been unable to pay jet fuel dues amounting to Rs. 314 crore ($65 million)..An arbitration petition filed by BPCL, represented again by Udwadia & Udeshi, is also pending before the Mumbai High Court to arbitrate the jet fuel dispute. Senior Counsel, N.H. Seervai has been engaged to appear on behalf of BPCL. Kingfisher is being represented by Bachubhai Munim & Co., who are one of the standing counsels for Kingfisher. The Managing Partner, Atul Munim was on the Board of Directors of United Breweries, the parent arm of Kingfisher Airlines. Dilip Udeshi and Amol Bavare, Partners at Udwadia & Udeshi in charge of this litigation, refused to comment since the matter is sub judice. The Karnataka High Court is yet to admit the matter..Kingfisher Airlines’ net loss has been increasing each quarter and the airline reported a net loss of Rs 626 Crore ($130 Million) for the quarter ending December 31, 2008, from Rs. 423 Crores ($88 Million) in the same quarter the previous year. Reports estimate that Kingfisher Airlines owes state run oil marketing companies a sum of Rs. 950 Crores in total.