Kathmandu, May 11
The District Court, Kathmandu has ordered Standard Chartered Bank to freeze Turkish Airlines Inc’s accounts at the bank.
The court ordered suspension of Turkish Airlines’ accounts with the Standard Chartered Bank after Zenith Travels Pvt Ltd filed a case against the airlines seeking recoupment and compensation for the investment it had made in anticipation of winning a contract to become the airlines’ general sales agent in Nepal.
The court ordered the bank to freeze Rs 23,815,025 deposited in Turkish Airlines’ two accounts with the bank until the affected party approaches the court seeking ‘reconsideration’ on the matter.
According to plaintiff Jay Devan, managing director of Zenith Travels Pvt Ltd, his company invested more than two crore rupees for setting up infrastructure in the hope that it would be offered the airlines’ GSA but later the airlines refused the same without paying back the money.
Devan said the airlines told him to invest in basic works but when time came to sign the agreement, the airlines placed conditions, which Zenith Travels was not in a position to meet.
According to Devan, Turkish Airlines Inc told his company to commit to spending $ 80,000 annually in the form of advertisements in Europe which his travel company declined to accept.
Devan said the airlines held his bank guarantee for a long time without entering any agreement. Zenith Travels filed a lawsuit against the airlines after the latter ignored repeated requests to return the investment made by the former.
A version of this article appears in print on May 12, 2016 of The Himalayan Times.