Delhi HC declines Paramount Airways' status quo plea

The Directorate General of Civil Aviation (DGCA) has grounded three out of the fleet of five aircrafts of Paramount Airways, reports CNBC-TV18's Mehak Kasbekar.

This six month old legal saga has finally reached a conclusion today. Paramount had allegedly defaulted on payment of three aircrafts to UK-based GE Capital Aviation. Hence, DGCA had grounded three out of the fleet of five aircrafts of Paramount Airways. 

Paramount had approached Delhi High Court challenging the DGCA's actions. The court has declined Paramount's plea to maintain status quo for the weekend. It will continue to hear Paramount's plea to dismiss DGCA orders on Monday.

Paramount Airways' flights VT-PAE, VT-PAD and VT-PAF have grounded since 6 pm today. When contacted, Paramount Airways said it cannot comment since the matter is subjudice.

Sources in Paramount told CNBC-TV18's Swati Khandelwal Jain that the airliner is operating all its four aircrafts and that one aircraft has been grounded for maintenance. "No order has been received from any court to ground aircraft. The Madras High Court is not involved in the GE Capital Aviation-Paramount case on payment dues."

They added that the case on payment dues is likely to come up for hearing on Monday as the Delhi High Court could not take up the case on Friday due to paucity of time.