Kingfisher Airlines Gets Relief From Calcutta High Court Against Wilful Defaulter Tag

The Calcutta High Court has granted a stay order to Vijay Mallya’s defunct carrier Kingfisher on United Bank of India (UBI) decision to declare Vijay Mallya and three other directors as wilful defaulters. Earlier this month, the bank’s grievance redressal committee had declared the airline and its directors including the promoter as wilful defaulters

“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”, said Prakash Mirpuri, chief spokesperson of the airline in an email.

The airline had earlier told BI India that it was planning to take legal recourse to challenge the wilful defaulter tag given by UBI. The carrier along with its current and erstwhile directors filed a writ petition in the high Court against the bank and others, in which it had challenged the ex-parte decision of the grievance redressal committee constituted by the declaring the petitioners wilful defaulters.

“The matter was listed for hearing on Friday, 26th September, 2014 before hon’ble Justice Debangsu Basak. After hearing Counsel for the Petitioners and the Bank, His Lordship passed an order in which his lordship has held that, prima facie, the Bank acted in breach of the principles of natural justice by not making over the documents referred to and relied upon by the Bank to KFA prior to the hearing, and thus, not enabling KFA to make an effective representation against the charges and allegations made against them in relation to being declared wilful defaulters,” added Mirpuri in the email.

The next hearing of the case will be held on 10th November while the bank has been asked to submit its affidavit in opposition by 3rd November. The airline is then expected to file its reply within a week of the affidavit.