In what is being seen as a major setback for Air India, a court in Quebec, Canada has dismissed a petition filed by India's national carrier last week seeking quashing of an order that permitted seizure of the airline's assets by Devas shareholders.
As per the judgement passed on Saturday by Judge Michel A. Pinsonnault of the Superior Court of Quebec, Devas shareholders can seize up to 50 per cent of Air India's funds held by the International Air Transport Association (IATA) retrospectively and prospectively.
The judgement read, "Subject to the right of the Mis-en-cause Air India, Ltd., the Third-Party Garnishee, International Air Transport Association (IATA), and the Plaintiffs to seek an additional revision of the scope of the Second Seizure against the assets of Air India, Ltd. should additional facts and circumstances warrant it, REDUCES and LIMITS henceforth the scope of the Second Seizure against the assets of the Mis-en-cause Air India, Ltd. to fifty percent (50%) of all the funds belonging to Air India, Ltd. presently held by IATA pursuant to the Second Seizure (the "Limited Scope"), the whole retroactively to December 21, 2021, the date of service of the Notice of execution;"
It further said, "Third-Party Garnishee, International Air Transport Association (IATA), to forthwith release and remit to the Mis-en-cause Air India, Ltd., fifty percent (50%) of all the funds due to or belonging to Air India, Ltd. presently held by the International Air Transport Association IATA pursuant to the Second Seizure, the whole retroactively to December 21, 2021, the date of service of the Notice of execution."
However, there was some relief for the Airports Authority of India (AAI) on its appeal against the seizure of its assets under the State Immunity Act. The court has stayed the seizures of AAI assets.
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"In light of the provisions of the State Immunity Act, the first Application for a Seizure Before Judgment by Garnishment of November 15, 2021, involving the Mis-en-cause, Airport Authority of India, and its assets, should not have been heard on an ex parte basis without prior notice being properly served upon the Misen-cause and without determining beforehand on the merits the State Immunity status claimed by the Mis-en-cause, Airport Authority of India," the order said.
The court further asked IATA to release all AAI assets seized by it.
"The Third-Party Garnishee, International Air Transport Association (IATA), to forthwith release and remit to the Mis-en-cause, Airport Authority of India, all assets, funds and money held by the International Air Transport Association (IATA) for the benefit of or belonging to the Mis-en-cause, Airport Authority of India," it said.
In its order, the court stayed all proceedings against the AAI.
There has been no reaction from the government of India so far on the issue. However, a senior aviation ministry official told Business Today TV that the government will study the judgement and decide on the next step.
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