BPCL,Kingfisher seek out-of-court settlement on dues row

The Bombay High Court was to hear the dispute today but as both the sides had not arrived at any understanding,the matter was adjourned to November 3 without any arguments.

The state-run oil firm had filed a petition with the High Court to appoint an arbitrator to resolve the issue,after the private airline failed to clear its dues of Rs 314 crore,including Rs 290 crore as principal amount,to BPCL.

On October 8,Kingfisher had offered the oil company a payment of Rs 10 crore every month,as a settlement arrangement,which was turned down by BPCL.

While arguing the arbitration petition,earlier filed by BPCL against Kingfisher,the oil PSU said the offer of Rs 10 crore was not acceptable and asked the airline to come out with a substantial offer.

BPCL had also filed a winding up petition in the

Karnataka High Court against Kingfisher,which is pending.

BPCL is represented by senior counsel Janak Dwarkadas and lawyer Amol Baware.

Kingfisher Airlines counsel Navroz Seervai had suggested that talks between the top officials of the airline and the oil marketing major could lead to faster resolution of the matter.

The BPCL counsels conceded that a meeting could help in resolving the issue amicably but it could materialise only after the Vijay Mallya-led airline makes a substantial offer to the petroleum major.