Kingfisher and Mallya refute “wilful defaulter” charge

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By TESTCustomwebLP TESTCustomwebLP September 11, 2014 15:29

Kingfisher and Mallya refute “wilful defaulter” charge

In a letter to the Bombay Stock Exchange (BSE), Kingfisher Airlines has said that it was wrongfully declared as a “wilful defaulter” by the state-run United Bank of India (UBI). The carrier had previously received a letter from BSE, seeking clarifications regarding the wilful defaulter tag given by the bank.

The airline’s management, in the letter, further added that the company had filed for a special leave petition (SLP) in the Indian Supreme Court, but the petition became ‘infructuous’ – fruitless, or pointless – after UBI declared the company and its directors as wilful defaulters.

“…despite pendency of the SLP which was brought to the notice of UBI by the advocates of the Company with a request to defer the hearing till the SLP was heard and decided by the Supreme Court of India, UBI proceeded to convene a personal hearing on 1st September 2014, and in spite of the absence of any representation on behalf of the company and its directors, proceeded with the hearing and declared four of its directors as wilful defaulters on the very same day…” the management said in its letter.

The management also mentioned that they are in the process of taking a legal action against UBI. The next hearing for the airline’s special leave petition is scheduled on 14th October in the Supreme Court and the company has already contested the wilful defaulter tag in the court.

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By TESTCustomwebLP TESTCustomwebLP September 11, 2014 15:29