Air India back in operation with Hayleys as new General Sales Agent

Thursday, 9 May 2024 02:52 - - {{hitsCtrl.values.hits}}

Move by previous GSA Indu Sky Aviation to legally restrain Air India fails

Indu Sky Aviation Ltd. has failed in multiple attempts to legally restrain Air India from transferring their General Sales Agency (GSA) to a third party, upon the expiration of the GSA with Indu Sky.

Indu Sky made an application in the District Court of Colombo, seeking an enjoining order against Air India days prior to the expiration of the GSA Contract, to prevent the latter from appointing a new GSA and this enjoining order was refused on 26 March.

Aggrieved by the refusal of the enjoining order in the District Court, Indu Sky filed an application invoking the restitutio in integrum jurisdiction of the Court of Appeal under the Constitution. Indu Sky obtained interim relief from the Court of Appeal after having supported the Application ex parte. Subsequently, Air India was represented before the Court of Appeal by Avindra Rodrigo, President’s Counsel who sought to vacate the interim relief granted by Court on the basis that Indu Sky had failed to act under and in terms of an arbitration clause in its expired GSA Agreement with Air India and had failed to pursue alternative statutory and legal remedies prior to the invocation of the jurisdiction of the Court of Appeal. Air India was successful in their application as the interim orders issued against Air India were set aside.

Air India is now proceeding with its operation in Sri Lanka under a newly appointed GSA.

Indu Sky was represented by Upul Jayasuriya, President’s Counsel, instructed by Invictus Law. Air India was represented by Avindra Rodrigo, President’s Counsel with Raneesha de Alwis (AAL) and Kasuni Jayaweera (AAL) instructed by F. J. & G. de Saram.