Calcutta HC Stays United Bank’s ‘Wilful Defaulter’ Tag Against Kingfisher

Grounded airline Kingfisher Airlines Ltd has obtained a stay order from the Calcutta High Court on the decision of the United Bank of India, declaring the airline and its directors (including erstwhile directors) as ‘wilful defaulters.’

“The bank has been directed to file its affidavit-in-opposition by 3 November, 2014, and the petitioners have been directed to file their reply one week thereafter. The next date of hearing has been fixed for 10 November 2014,” Prakash Mirpuri, vice president-corporate communications, Kingfisher Airlines Ltd, 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,” he added.

Kingfisher Airlines, together with its directors and erstwhile directors, had filed a writ petition in the Calcutta High Court against the United Bank of India and others. It had challenged the constitutional validity of the RBI Master Circular on wilful defaulters and the decision of the grievance redressal committee set up by the United Bank of India, which had declared the petitioners ‘wilful defaulters.’