New Delhi: The Supreme Court has refused to accede to Vijay Mallya's
plea to strike down state-run United Bank of India's (UBI) decision to
declare him a wilful defaulter, dealing a blow to the former liquor
baron who has been fending off banks from recovering money they once
lent to his now defunct Kingfisher Airlines.
A two judge bench of the top court on Tuesday summarily waived off Kingfisher's objections that its chairman Mallya was declared a "willful defaulter" by the United Bank of India's Grievance Redressal Committee without his lawyer being heard during the proceedings.
The bench, comprising Justices AR Dave and UU Lalit said the objections were now of no consequence as the order declaring him a willful defaulter had already been passed.
The company could, however, challenge the declaration in appropriate proceedings, the court hinted. Kingfisher's lawyer Parag Tripathi said the company was facing financial problems, but wasn't by any stretch a willful defaulter. "Where is the diversion of funds?" he asked, adding that the company was unable to pay its debts but hadn't willfully defaulted.
Read news in full 03/09/14 Samanwaya Rautray/Economic Times
A two judge bench of the top court on Tuesday summarily waived off Kingfisher's objections that its chairman Mallya was declared a "willful defaulter" by the United Bank of India's Grievance Redressal Committee without his lawyer being heard during the proceedings.
The bench, comprising Justices AR Dave and UU Lalit said the objections were now of no consequence as the order declaring him a willful defaulter had already been passed.
The company could, however, challenge the declaration in appropriate proceedings, the court hinted. Kingfisher's lawyer Parag Tripathi said the company was facing financial problems, but wasn't by any stretch a willful defaulter. "Where is the diversion of funds?" he asked, adding that the company was unable to pay its debts but hadn't willfully defaulted.
Read news in full 03/09/14 Samanwaya Rautray/Economic Times
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