KINGFISHER AIRLINES LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) United Bank of India (hereafter the bank), respondent No. 2, issued a notice dated 28 May, 2014, to the petitioning company informing it that the account maintained by it with the Bangalore branch of the bank had been classified as non-performing asset in terms of the guidelines of the Reserve Bank of India (hereafter the RBI) and that the Committee on Identification of wilful defaulters had identified it as a wilful defaulter for the reasons mentioned therein. The petitioning company was granted 15 days time for submission of representation, if any, for consideration by the Grievance Redressal Committee of the bank (hereafter the Committee) on identification of wilful defaulters. Similar notice was issued to the directors of the petitioning company, who are the proforma respondents in this writ petition. The petitioning company responded to the aforesaid notice by a representation dated 10 June, 2014, wherein it was contended that the default made on its behalf was not capable of being categorized as wilful and a request was made to withdraw the notice. It was further observed therein that if the Committee were inclined to proceed further, the petitioning company may be given the opportunity of personal hearing as well as the liberty of being represented by an advocate of its choice. The bank by its notice dated 23 June, 2014, informed the Chairman and Managing Director of the petitioning company that 28 June, 2014, has been fixed as the date for extending an opportunity of personal hearing and that it may attend the hearing fixed at the venue and time indicated therein. Alleging that the notice dated 23 June, 2014, contained fresh allegations, it was represented on behalf of the petitioning company on 24 June, 2014, that it be given the opportunity to respond thereto and the hearing may be rescheduled either on 26 July, 2014 or on 2 August, 2014, to enable the advocate for the petitioning company to address the Committee.

(2.) Pursuant to receipt of such representation, it was informed to the petitioning company by a notice dated 25 June, 2014, that 9 July, 2014, has been fixed as the date of hearing. It was additionally informed as follows:

(3.) By a further representation dated 30 June, 2014, the petitioning company stressed that refusal of legal representation was in essence a violation of the principles of natural justice and the rights guaranteed under the Constitution of India. It was further brought to the notice of the bank that the petitioning company had been afforded opportunity to be represented by advocates of its choice by Corporation Bank, a member of the consortium which granted financial assistance to the petitioning company and, accordingly, it was reiterated that the hearing would be attended by the chairman cum managing director and the other directors alongwith their respective advocates.