New Delhi: Ailing Kingfisher Airlines, facing proceedings initiated by lending bank PNB to declare it and its guarantors Vijay Mallya and UBHL as wilful defaulters, Monday told the Delhi High Court that it has the right to be represented by lawyers before the bank's panel.
"Unless, a law specifically bars, a person or a company has every right to be represented by lawyers before a quasi- judicial panel or other committees," the counsel for the firm told a bench comprising Chief Justice G Rohini and Justice R S Endlaw said.
The court asked senior advocate Rajiv Nayar, appearing for the airlines, to advance arguments also on the rights of lawyers to appear before different panels under the Advocates Act.
"The order in this case will have wide ramifications across the country. Usually, competent persons leave a sinking ship and such companies are left with nobody except professionals like lawyers to help them," the bench said.
Punjab National Bank, however, opposed the plea saying that the bank's panel does not perform duties of a quasi- judicial body and hence, the company does not have a right to be represented through lawyers.
The court has now fixed the plea of PNB for hearing on November 11.
In its plea, PNB challenged an order of a single-judge bench of the high court which had allowed lawyers to represent the airline in the proceedings to decide whether the carrier and its guarantors, Mallya and United Breweries (Holdings) Ltd (UBHL) are to be held wilful defaulters for non-payment of dues of over Rs 770 crore.
The court had earlier sought responses of the Centre and Kingfisher Airlines on the plea of the PSU bank.
PNB has contended that it had issued notice on August 21 to the airline asking why it and its guarantors be not declared wilful defaulters for non-payment of dues as per RBI guidelines.
PNB had said in its notice that in the event of no reply within seven days from August 21, the airline and its guarantors would be deemed as wilful defaulters.
The single-judge bench of the high court in its August 28 order had also stayed the bank's notice to the extent that the airline and its guarantors would be held as wilful defaulters for not replying within seven days.
The court had said the operation of the default notice would not come into effect as PNB will have to give to the airline, within a week from August 28, the documents relied upon by it and Kingfisher was given two weeks time thereafter to respond.
In its appeal, PNB said the airline had not disclosed that a similar plea of the carrier, against United Bank of India, was dismissed by a division bench of the Calcutta High Court on July 16.
It has also submitted that the airline's appeal against the Calcutta High Court's decision was dismissed by the Supreme Court on September 2.
The Delhi High Court in its August 28 order had held as "unacceptable" the bank's reasons for not allowing the airline to be represented by lawyers in the proceedings initiated to decide whether the grounded carrier is a wilful defaulter for non-payment of dues and directed that two advocates be allowed to represent Kingfisher.
Kingfisher had moved the court seeking directions to the bank to rescind its August 21 notice and those issued earlier as well as to restrain it from taking any action against the airlines in pursuance of the same.
The court had also said that the hearing before the committee will be held on September 22 and would be concluded the same day within six hours in order to prevent any delay.
According to PNB, the airline has wilfully defaulted in payment of outstanding dues of over Rs 774 crore.
It has also submitted that Kingfisher Airlines has already been held as a wilful defaulter by United Bank of India for non-payment of dues.
