Kingfisher gets stay on wilful defaulter tag

Next date of hearing is on November 10

September 27, 2014 11:56 pm | Updated 11:56 pm IST - MUMBAI:

Kingfisher Airlines on Saturday announced that it had secured a stay from the Calcutta High Court on the decision of United Bank of India’s (UBI) Grievance Redressal Committee, which had earlier declared the airline and its directors, including its Chairman Vijay Mallya, as wilful defaulters.

UBI has been directed to file its affidavit-in-opposition by November 3, and the petitioners have been directed to file their reply one week thereafter. The next date of hearing has been fixed for November 10.

“We had earlier stated that we would legally challenge the wrongful decision of UBI and that we have great faith in the judiciary in our country. We will legally defend our position on all allegations going forward,” Prakash Mirpuri, Vice President (Corporate Communications), Kingfisher Airlines, said in a statement.

Writ petition

Kingfisher Airlines, along with its directors/erstwhile directors, had filed a writ petition in the Calcutta High Court against UBI and others, challenging the constitutional validity of the RBI Master Circular on wilful defaulters as well as challenging the ex-parte decision of the Grievance Redressal Committee constituted by UBI, declaring the petitioners wilful defaulters for not paying loans advanced to the airline.

The matter was listed for hearing on September 26 before Justice Debangsu Basak. Kingfisher Airlines said, after hearing counsel for the petitioners and the bank, the court granted a stay.

Top News Today


Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.