A total of four cheques amounting to Rs. 10.5 crore were issued since January to GHIAL by the troubled airline. The cheques bounced when they were sent for clearance at the banks and legal notices were sent to the airline. When GHIAL did not receive the money even after serving legal notices, it filed a case in the special court under the Negotiable Instruments Act in August against the Bangalore-based company.
The court had summoned Kingfisher Airlines, Vijay Mallya, chief executive officer Sanjay Agarwal, chief financial officer H. G. Raghunath and two other senior officials to appear on Friday in the sourt bu their non-apperance led to the issue of a non-bailable warrant against them.
Lawyers representing the airline had filed a tition under provisions of criminal procedure code to dispense with their personal attendance but the court did not approve it and issued arrest warrant.
Kingfisher has an agreement with GHIAL relating to charges from passengers for parking, landing and navigation with regard to Hyderabad airport. Under the agreement, the airline is expected to pay these charges to the airport handler but it did not pay due to the difficult financial position of the arline.
