India's Paramount Airways has been ordered by the Madras High Court to pay ECC Leasing $757,200 after the airline defaulted on its payments.
The carrier must pay the amount within 30 days of the order, dated 15 December, says the court.
If not, ECC will be entitled to seek an order to repossess the two Embraer E170s that are leased to the airline, it adds.
ECC, an Embraer subsidiary, had applied to the court to seize the two aircraft after Paramount defaulted on payments.
An airline spokesman says it is in talks with ECC to offset the outstanding amount of $757,200 against the maintenance reserves.
However, ECC Leasing says it is not in discussions with Paramount.
"The High Court of Madras has made an order to Paramount and we will wait for Paramount to comply with that," says ECC.
The carrier was earlier embroiled in another lease dispute with GE Capital Aviation Services (GECAS), which has accused Paramount of defaulting on lease charges.
Paramount has maintained it does not owe GECAS any charges, while GECAS has said it is "pursuing all available legal remedies" in the case.
Source: Air Transport Intelligence news
