A Canadian aircraft leasing firm has moved to court to stop the auction of its two planes arguing that it has nothing to do with a Sh77 million debt sought to be recovered in a dispute between Five Forty Aviation and a fuel supplier.
Avmax Aircraft Leasing Inc wants in an urgent application to stop the warrants of attachment issued for the seizure of two aircraft by an auctioneer suspended so that it can prove ownership.
The firm through its local agent, Mr David Kuria, said in the application that they are apprehensive that the attached planes would be sold if the stay is not granted, rendering its case useless.
“That unless the warrants of attachment herein are stayed, the application will be rendered nugatory,” Mr Kuria said. High Court judge Josephine Mong’are directed Fine Jet and Fly 540 and the auctioneer to file their responses ahead of the hearing next week.
Fly 540 is embroiled in a dispute with Fine Jet over a debt arising from the supply of jet fuel.
After failing to settle the debt, Fine Jet engaged the services of Nairobi Connection Services Auctioneers, who identified two aircraft, a 5Y-BXC bombardier CRJ-100 and a 5Y-RJS DHC-8-300, for sale to recover the debt. Through lawyer Ham Lagat, Avmax says the two aircraft identified for sale cannot be attached as they belong to them and not Five Forty Aviation.
Mr Lagat added that four other aircraft pointed out by the auctioneer 5Y-CGL (MSN 426), 5Y- BXC (CRJ), 5Y-BUZ (MSN 253) and 5Y-RJS serial number 250 belongs to Avmax Aircraft Leasing.
The lawyer stated that in a ruling on September 4, Fine Jet obtained warrants in respect of the two aircrafts after the court dismissed an objection filed by East Africa Safaris Air Ltd, which stated that the aircraft was leased from Avmax and Five Forty was not the registered owner.
He said the information was not disclosed to Avmax, a move that would have enabled the firm to file objection proceedings seeking to lift the warrants. By SAM KIPLAGAT