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DRT dismisses Kingfisher’s petition against banks

kishfisherThe Debt Recovery Tribunal has dismissed an interlocutory application (IA) filed by Kingfisher Airlines (KFA) against SBI-led banks’ consortium. In the rejected plea, KFA accused the consortium of violating a loan recast agreement. KFA had earlier filed an IA seeking the amendment of the original application and also a counter-petition seeking around Rs. 3000 crore from the banks for violation of master debt recast agreement (MDRA). The banks and Kingfisher Airlines had entered into this agreement in October 2010. The consortium said the tribunal that the airline’s application should not be allowed as the limitation period to claim amendment had elapsed. The original application was filed on June 2013 and after completion of pleadings, the plaintiffs got ample time. Hence, it should not be accepted at the fag end of the proceedings, the consortium asked the tribunal. The consortium- a bundle of 17 banks- moved the DRT for the recovery of more than Rs 9000 crore loans they altogether gave to now defunct KFA.

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