Kingfisher gets HC relief on wilful defaulter tag by UBI

Union Bank of India had earlier declared the airlines, chairman Vijay Mallya and three directors as wilful defaulters

Kingfisher Airlines has secured a stay from the Calcutta High Court on the decision of the grievance redressal committee of the United Bank of India (UBI), which had earlier declared the airline and its directors (including erstwhile directors) as wilful defaulters.

The bank has been directed to file its affidavit-in-opposition by November 3 and the airline will file its reply one week thereafter. The next date of hearing has been fixed for November 10. In September United Bank of India declared Kingfisher Airlines and its chairman Vijay Mallya  wilful defaulters for non-payment of Rs 400 crore of dues. Three company directors — Subhash R Gupte, Ravi Nedungadi and Anil Kumar Ganguly — also figure in the list.

A Kingfisher Airlines spokesperson said, “We had earlier stated that we would legally challenge the wrongful decision of United Bank of India and that we have great faith in the judiciary in our Country. We will legally defend our position on all allegations going forward.”

Kingfisher Airlines Limited along with its directors/erstwhile directors had filed a writ petition in the Calcutta High Court  against the bank’s decision. The matter was  heard on Friday and Justice Debangsu Basak  held that, prima facie, UBI  acted in breach of the principles of natural justice by not making over the documents referred to and relied upon by it to Kingfisher prior to the hearing, and thus, not enabling airline  to make an effective representation against the charges, the airline spokesperson added.