The National Company Law Tribunal (NCLT), Amaravati Bench, has admitted a petition for insolvency proceedings against LEPL Projects Limited, a promoter of the grounded airliner Air Costa.

Member Judicial Janab Mohammmed Ajmal, while admitting a petition moved by MTU Maintenance Berlin-Brandenburg GmbH, which has its registered office in Ludwigsfelde, Germany, against LEPL for failing to pay up its dues, admitted the insolvency petition under the Insolvency and Bankruptcy Code, 2016.

While rejecting the contentions of the debtor company and respondent LEPL, the Tribunal admitted the insolvency petition and appointed Medarametla SM Rajini as Interim Resolution Professional and declared a moratorium as per the provisions of IBC. Air Costa, part of the respondent LEPL, entered into an aircraft engine lease General Terms of Agreement with MTU Maintenance and Lease Services BV, Netherlands in November 2014. The airline had entered into an agreement in 2014 with MTU for aircraft related services during which the company had dues, MTU contended.

The airline, which commenced operations in October 2013, later stopped commercial operations in February 2017. The petitioner MTU contended that its dues were not paid up as per the agreement and knocked at the NCLT.

The respondent debtor contended that the petitioner approached the Tribunal seeking payments which were not due and there was no contractual default.

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