SC rejects KFA’s ‘infructuous’ plea against UBI’s decision
4 Sept 2014 5:24 AM IST
The Supreme Court on Tuesday refused to entertain a petition filed by Kingfisher Airline against being declared as wilful defaulter, saying it has become infructuous as the Grievance Redressal Committee of United Bank of India has already passed an order.
‘Your grievance has been, that Grievance Redressal Committee (GRC) should not decide the matter but they had already decided it, therefore your plea is infructuous’ a bench comprising justices A R Dave and U U Lalit said.
The Kingfisher Airlines had alleged that the order by GRC was passed on Monday, ignoring the plea that the director should be allowed to be represented through lawyers.
State-run United Bank of India Monday became the first lender to declare debt-ridden Kingfisher Airlines and its promoter Vijay Mallya as wilful defaulters.
Hours after the Supreme Court refused to entertain a petition filed by Kingfisher Airlines against being declared wilful defaulter, the airline said it would ‘vigorously challenge’ the bank’s decision.
In a statement, the Vijay Mallya-owned company said, ‘KFA and its directors will vigorously challenge the decision of UBI’ and they ‘strongly deny the allegations of wilful default for alleged non-payment of Rs 7.5 crore to UBI.’
‘KFA and its directors have not been given any opportunity to present their case through lawyers of their choice before UBI who have come to a wrongful ex-parte decision in great haste when the question of legal representation was under challenge,’ Prakash Mirpuri, Vice President (Corporate Communications) of the UB Group, said.
The airline had on Monday too accused the UBI of having proceeded post haste to ‘declare KFA and its directors or erstwhile directors as wilful defaulters in respect of an overdraft facility of Rs 7.5 crore.’ It had also said that ‘KFA intends to pursue all available legal remedies’.
‘Your grievance has been, that Grievance Redressal Committee (GRC) should not decide the matter but they had already decided it, therefore your plea is infructuous’ a bench comprising justices A R Dave and U U Lalit said.
The Kingfisher Airlines had alleged that the order by GRC was passed on Monday, ignoring the plea that the director should be allowed to be represented through lawyers.
State-run United Bank of India Monday became the first lender to declare debt-ridden Kingfisher Airlines and its promoter Vijay Mallya as wilful defaulters.
Hours after the Supreme Court refused to entertain a petition filed by Kingfisher Airlines against being declared wilful defaulter, the airline said it would ‘vigorously challenge’ the bank’s decision.
In a statement, the Vijay Mallya-owned company said, ‘KFA and its directors will vigorously challenge the decision of UBI’ and they ‘strongly deny the allegations of wilful default for alleged non-payment of Rs 7.5 crore to UBI.’
‘KFA and its directors have not been given any opportunity to present their case through lawyers of their choice before UBI who have come to a wrongful ex-parte decision in great haste when the question of legal representation was under challenge,’ Prakash Mirpuri, Vice President (Corporate Communications) of the UB Group, said.
The airline had on Monday too accused the UBI of having proceeded post haste to ‘declare KFA and its directors or erstwhile directors as wilful defaulters in respect of an overdraft facility of Rs 7.5 crore.’ It had also said that ‘KFA intends to pursue all available legal remedies’.
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