A longshot bid by an Ireland-based leasing consortium to kick off a proceeding to windup Indonesia’s national airline Garuda has failed on appeal to the High Court of Australia.
Greylag Goose Leasing, via two special purpose vehicles, made demands on Garuda for the payment of US$437 million.
In the Supreme Court of New South Wales, Greylag Goose commenced a proceeding under Part 5.7 of the Corporations Act seeking orders that Garuda be wound up "on the basis that [Garuda] is unable to pay its debts or otherwise that it is just and equitable to do so".
Garuda sought an order that the originating process be set aside on the basis that the Supreme Court lacked jurisdiction under the Immunities Act.
On the hearing of that notice of motion, it was common ground that Garuda is an agency or instrumentality of the Republic of Indonesia and is on that basis a separate entity of a foreign State within the meaning of the Immunities Act, the High Court’s judgement said.
At first instance, the NSW Supreme Court rejected the argument of Greylag Goose that the exceptions in the Immunities Act applied.
The order setting aside the originating process was upheld on appeal to the Court of Appeal of the Supreme Court of NSW.
The dispute has been the subject of litigation in France.