United Bank of India is likely to appeal before a division bench of the Calcutta High Court, challenging...
United Bank of India is likely to appeal before a division bench of the Calcutta High Court, challenging its single bench order that dismissed bank’s decision to declare UB Group chairman Vijay Mallya a ‘wilful defaulter’.
“We are likely to appeal before a division bench of the Calcutta HC soon against the single bench judgment in the wilful defaulter case. Our draft is ready and the general manager (law) is finalising the matter,” United Bank of India executive director Deepak Narang told FE.
In a judgment on December 24, justice Debangsu Basak quashed the bank’s grievance redressal committee’s decision to declare Mallya a wilful defaulter.
The bank said the court had found no flaw in its evidence, but ruled in favour of Mallya on purely ‘technical grounds’. While RBI guidelines on wilful defaulters require a three-member grievance redressal committee, United Bank had formed a four-member committee.
“Since the dismissal was on technical grounds, we have decided to move a division bench of the court,” Narang said.
Cracking down on Kingfisher Airlines for non-payment of over Rs 300 crore outstanding dues, the Kolkata-based bank had declared Mallya a wilful defaulter in September last year.