Wilful Defaulter: Kingfisher Airlines says got stay against United Bank's decision
Moneylife Digital Team 01 October 2014
Kingfisher Airlines said it obtained a stay from Calcutta High Court against United Bank of India's decision to declare the carrier as 'wilful defaulter
 
Vijay Mallya-controlled Kingfisher Airlines on Wednesday said it obtained a stay from Calcutta High Court against United Bank of India's decision to declare the carrier as 'wilful defaulter'.
 
In a statement, Prakash Mirpur, Kingfisher Airlines’ vice-president for corporate communications, said the carrier has "secured a stay from the Calcutta High Court on the decision of the Grievance Redressal Committee (GRC) of the United Bank, which had earlier declared the airline and its directors (including erstwhile directors) as wilful defaulters".
 
Last month, the Kolkata-based state-run Bank became the first lender to declare debt-ridden Kingfisher Airlines and its promoter Vijay Mallya as wilful defaulters. The Grievance Redressal Committee (GRC) of the bank has declared directors, Ravi Nedungadi, Anil Kumar Ganguly and Subash Gupte as wilful defaulters.
 
After that Kingfisher Airlines moved a special leave petition before the Supreme Court. However, the apex court refused to hear the petition. A bench comprising justices AR Dave and UU Lalit said, "Your (KFA's) grievance has been that the Grievance Redressal Committee (GRC) should not decide the matter but they had already decided it, therefore your plea is infructuous". 
 
After the Supreme Court said that the plea has become infructuous, the airline counsel submitted that they would challenge the GRC order before the concerned High Court.
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