Aeroflot aircraft stopped on Court Order minutes before take-off from BIA

The aircraft whose flight was suspended by a Court Order on 2 June 2022 and currently at BIA has been in operation under the Russian airline Aeroflot contrary to the instructions of the owner of the aircraft. 

The Owner of the aircraft, Celestial Aviation Trading 10 Ltd., of Ireland filed action against the Aeroflot Russian Airlines seeking interim relief from the Commercial High Court of Colombo pending arbitration proceedings instituted in London.

The Acting Head of Air Navigation Services has also been made a party to this case only to put him on notice of the legal proceedings and any orders given by Court.

The aircraft, identified by its unique manufacturer’s serial number registered in Bermuda, was leased by its owner to Aeroflot and the said lease was terminated in March 2022 due to Aeroflot’s failure to act in compliance with the terms of the lease agreement.

Contrary to the owner’s request to cease operations of the aircraft and handover possession, Aeroflot continued the use of the aircraft for flights between Colombo and Moscow. It has been further submitted to court that the aircraft did not have a valid airworthiness certificate or an insurance, as per the terms of the lease. 

While these disputes have already been referred to arbitration in London, the owner, Celestial Aviation, sought relief in the Commercial High Court to preserve the subject matter of the dispute until the determination of the arbitration, by seeking an enjoining order against Aeroflot preventing them from operating, handling, taking off the ground the identified aircraft. A further enjoining order was sought to prevent Aeroflot from removing any parts, equipment systems and modules etc.

After hearing submissions made by Avindra Rodrigo President’s Counsel for the Plaintiff owner of the craft, High Court Judge Harsha Sethunge, granted both enjoining orders on 2 June, few minutes prior to the arrival of the said aircraft at the BIA. It was submitted that the aircraft was scheduled to leave Colombo at 12.50 p.m. on the same day on a turnaround flight.

The enjoining order issued by Court were served on and conveyed to the Acting Head of Air Navigation Services as directed by Court and the Aeroflot flight SU 289 carrying around 191 passengers scheduled to leave Colombo was stopped a few minutes before its take-off.

The case was taken up in the Commercial High Court of Colombo on 3 June 2022 on applications made by Aeroflot and the Acting Head of Air Navigation Services. Additional Solicitor General Sumathi Dharmawardena appearing for the Acting Head of Air Navigations required a clarification from Court that no enjoining order was issued against him and Court clarified that such order was only issued against Aeroflot but was conveyed and communicated to the Acting Head of Air Navigation Services.

Lasantha Hettiarachchi appearing for Aeroflot informed Court of the inconvenience caused to the passengers of the flight and sought to vacate the enjoining orders. Counsel submitted that additional expenses are incurred for each delayed day as a result of having to provide for 191 passengers, however, admitted that the craft is owned by the Plaintiff.

Avindra Rodrigo with Aruna de Silva instructed by F J & G de Saram, appearing for the owner of the aircraft impressed upon court that the dispute between the parties stems purely from a commercial transaction which is to be resolved through arbitration and reliefs are sought in Commercial High Court to preserve the aircraft which is the subject matter of the arbitration. 

Counsel further emphasised that the aircraft is owned by his client and that Aeroflot is operating it without any authorisation. Counsel further drew the attention of the Court to alternative flights scheduled between Colombo and Moscow which could be arranged for the passengers of the cancelled flight.  

The High Court Judge directed the Defendants to file their objections and any applications formally so that the proper procedure of court can be followed in taking this matter forward and obliged to hear this matter on 8 June 2022 date taking into cognisance its urgency.