<p>Grounded Kingfisher Airlines has written to UCO Bank wanting to know the basis of attaching the ‘wilful defaulter’ tag on the carrier.<br /><br />“First we had sent the airline and its corporate guarantor a notice asking why the two entities should not be declared as wilful defaulters,” a source in the bank said.<br />Now, the airline has communicated that it wanted to know the basis of why the ‘wilful defaulter’ tag was being attached to the company.<br /><br />“We will certainly give them a reply and also ask whether Mallya was keen to represent his case before the grievance redressal cell or depute some lawyers,” the source said.<br />He said that the bank was bound to give a reply in order to ensure principal of natural justice, adding that UCO had followed all the laid-down norms required for declaring anyone as wilful defaulter.<br /><br />The carrier had availed a loan of around Rs 350 crore to meet working capital needs, and United Beverages was the corporate guarantor.<br /><br />Earlier, United Bank of India became the first lender to declare the debt-ridden airlines, its promoter Vijay Mallya and other directors, as wilful defaulters as the company.<br />Later KFA had said it has secured a stay from the Calcutta High Court on United Bank of India declaring the airline and its directors, including promoter Vijay Mallya, as wilful defaulters. <br /></p>
<p>Grounded Kingfisher Airlines has written to UCO Bank wanting to know the basis of attaching the ‘wilful defaulter’ tag on the carrier.<br /><br />“First we had sent the airline and its corporate guarantor a notice asking why the two entities should not be declared as wilful defaulters,” a source in the bank said.<br />Now, the airline has communicated that it wanted to know the basis of why the ‘wilful defaulter’ tag was being attached to the company.<br /><br />“We will certainly give them a reply and also ask whether Mallya was keen to represent his case before the grievance redressal cell or depute some lawyers,” the source said.<br />He said that the bank was bound to give a reply in order to ensure principal of natural justice, adding that UCO had followed all the laid-down norms required for declaring anyone as wilful defaulter.<br /><br />The carrier had availed a loan of around Rs 350 crore to meet working capital needs, and United Beverages was the corporate guarantor.<br /><br />Earlier, United Bank of India became the first lender to declare the debt-ridden airlines, its promoter Vijay Mallya and other directors, as wilful defaulters as the company.<br />Later KFA had said it has secured a stay from the Calcutta High Court on United Bank of India declaring the airline and its directors, including promoter Vijay Mallya, as wilful defaulters. <br /></p>