In an attempt to prevent Air India from transferring its general sales agency to another party after the agreement expired in March 2024, Indu Sky instituted action in the District Court of Colombo seeking orders to prevent Air India from transferring the general sales agency to a third party.

Indu Sky represented by Upul Jayasuriya, President’s Counsel, also claimed compensation amounting to approximately Rs. 1 billion for alleged loss and damage caused by Air India’s refusal to extend the general sales agency agreement with Indu Sky post March 2024. Although Indu Sky supported its application for enjoining orders on 26 March 2024, the District Court refused to issue the same but despite such refusal, Indu Sky pursued the action for interim injunctions in the District Court.

Air India raised several preliminary objections to Indu Sky’s application for interim relief including that the general sales agency agreement was subject to an arbitration clause providing for arbitration under the Indian Arbitration Act and that the District Court had no jurisdiction to determine any interim orders without a proper reference to arbitration being made. By order dated 27 February 2025, District Court of Colombo Judge Sandun Withanage, whilst upholding the objections of Air India and dismissing the application for interim injunctions proceeded to dismiss the entire application filed by Indu Sky on the basis that the District Court has no jurisdiction to determine this matter.

Air India was represented by Avindra Rodrigo, President’s Counsel, with Raneesha de Alwis and Kasuni Jayaweera on the instructions of FJ&G de Saram, Attorneys-at-Law.