Kingfisher secures stay from Calcutta HC | india | Hindustan Times
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Kingfisher secures stay from Calcutta HC

Kingfisher Airlines Ltd said on Saturday that it had secured a stay from the Calcutta High Court on the decision of the Grievance Redressal Committee of the United Bank of India which had earlier declared the airline and its directors as wilful defaulters.

india Updated: Sep 27, 2014 20:19 IST
HT Correspondent

Kingfisher Airlines Ltd. (KFA) said on Saturday that it had secured a stay from the Calcutta High Court on the decision of the Grievance Redressal Committee of the United Bank of India 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, 2014 and the petitioners have been directed to file their reply one week thereafter. The next date of hearing has been fixed for November 10, 2014” the airline said in a statement.

“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, Vice President-Corporate Communications, Kingfisher Airlines Ltd.

“Kingfisher Airlines Limited along with its directors/erstwhile directors had filed a writ petition in the Calcutta High Court against the United Bank of India 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 United Bank of India declaring the petitioners wilful defaulters,” the KFA press statement said.

“The matter was listed for hearing on September 26 before 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/allegations made against them in relation to being declared wilful defaulters,” it said.