MODILUFT LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) By this application the petitioner seeks a direction to the respondents to issue a 'No Objection Certificate' to them for relaunching airline operations. In the application it is stated that in order to liquidate their liability towards the customs authorities the petitioner, to be re-named as Royal Airlines Ltd., (for short RAL) has entered into a settlement agreement with M/s. Air UK Leasing Ltd (for short AUL) and in terms of the said settlement, Air UK is prepared to do the following :

(2.) It is further stated that in addition thereto, the petitioner is also prepared to pay a substantial amount to the respondents against the outstanding dues, which according to the statement of account, filed by the petitioner in Court today, are to the tune of Rs. 16,26,82,000/- as on 23rd July 1998.

(3.) The application is opposed by the respondents. In the reply affidavit it is stated that the amount of Rs. 12.50 crores deposited by AUL is in the nature of security for release of detained aircraft and could not be allowed to be appropriated towards Inland Air Travel Tax (IATT) dues. It is also pointed out that even after the proposed adjustment a substantial amount would still be due from the petitioner and, therefore, it may not be possible to issue the 'No Objection Certificate'.