The case originated from a 1997 commercial suit filed by AAI seeking recovery of ₹2.71 crore in unpaid parking, landing, and navigation charges for the period between January 1995 and March 1996, during which two aircraft—VT-EWH and VT-EWI—leased from Aer Lingus were being operated by East West Airlines.
AAI impleaded Aer Lingus along with East West Travel & Trade Links Ltd., East West Airlines, its liquidator, and two aircraft.
Aer Lingus, however, consistently maintained that it had no operational role in India and had leased the aircraft to East West Airlines for a five-year term beginning in 1992.
The lease was later terminated for non-payment and for operating without insurance coverage. The Irish company argued that as a lessor, it had no privity of contract with AAI and was not liable for airport dues incurred by the lessee.
