An Arbitral Tribunal has directed Air India to pay Rs 26.82 crore to logistics firm Gati towards damages, interests and costs in connection with a dispute between the two regarding a joint freight service that they had operated.
In May 2007, Gati had partnered with National Aviation Co, the erstwhile Indian Airlines, to operate a dedicated freighter service. However, due to certain disputes, the service was continued from March 2009.
“The service was discontinued due to continuous failure and defaults by NACIL,” the company had said in note earlier.
The Arbitral Tribunal has also said that in the event of Air India failing to comply with the award within 30 days from the date of the award, the carrier will be liable to pay future interest at 18 per cent.