PNB has said if there is no reply to its notice within seven days, then it would declare Kingfisher Airlines and its guarantors United Breweries and Vijay Mallya as wilful defaulter
Vijay Mallya-owned Kingfisher Airlines on Tuesday moved the Delhi High Court against Punjab National Bank (PNB)'s notice alleging the carrier has wilfully defaulted in payment of dues of over Rs770 crore.
In its notice on 21 August 2014, the state-run lender said, if no reply is received within seven days then the airline and its guarantors, United Breweries (Holdings) Ltd (UBHL) and Vijay Mallya would be declared "wilful defaulters".
The matter was mentioned by the airline through senior advocate Rajiv Nayyar before a bench of justices Badar Durrez Ahmed and Siddharth Mridul which listed it for hearing on Wednesday.
Kingfisher has sought directions to the bank to rescind the notices and also restrain it from taking any action against the airline pursuant to the same.
The petition has also made the Ministry of Finance and the bank as parties in the case.
Central government Standing Counsel Anil Soni and advocate Naginder Benipal will appear for the ministry.
The airline has contended that the bank had denied legal representation to it in the hearings held pursuant to two notices issued last year and it apprehends that the same may happen in connection with the latest notice of 21st August.
It has contended that such act of the bank is "arbitrary, unreasonable, untenable and unlawful".
The airline, in its plea filed through advocate Ajay Bhargava, has contended that the August 21 notice "for the first time and as a complete after thought has sought to rely on additional alleged facts in support of its decision to classify the petitioner, UBHL and Vijay Mallya as wilful defaulters".
The bank has issued the notices under the 1 July 2013 master circular of Reserve Bank of India (RBI) which pertains to steps to be taken by commercial banks with respect to non-performing assets (NPAs).
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According to Knight Frank, with demand falling by 25% during January to June 2014, there are over 2.13 lakh unsold homes in Mumbai region alone
With demand falling by a whopping 25%, the number of unsold homes at the end of June 2014 rose to over 2.13 lakh units in Mumbai Metropolitan Region (MMR), says property consultancy Knight Frank India.
In its half yearly analysis of realty sector, Knight Frank said, during January to June 2014, buyers continued to sit on the fence in anticipation that the new and stable leadership at the Centre would revive the ailing economy.
Dr Samantak Das, chief economist and director for research at Knight Frank India, said, "The shrinking size in terms of demand and supply confirms the misfortune of the region’s residential market. However, with a new, stable government at the centre, stakeholder sentiment has witnessed a remarkable improvement. The first budget under the leadership of Mr. Narendra Modi offered several positive surprises to the realty sector, with special focus on housing that will benefit the Mumbai realty market, with peripheral areas being the biggest beneficiaries."
Knight Frank said it expects sales volume across top six metros, Mumbai, Pune, National Capital Region (NCR) of Delhi, Bengaluru, Chennai and Hyderabad to experience a phenomenal growth rate of 26% in second half of 2014, compared to same period of 2013.
“A slowing economy, rising interest rates by banks, high inflation and the weak rupee, among others, contributed towards building a negative sentiment among home buyers that resulted in dwindling sales volumes within the residential market. However, the government’s intention to revive the economic growth of the country seems to have struck the right chord among investors and we do notice a substantial change in sentiments for the better," said Shishir Baijal, chairman and managing director of Knight Frank India.
Talking about office market in MMR, the report said during the first half of 2014, absorption of office space, at 2.5 mn sq ft declined by 34% over same period in 2013 owing to the general elections, which resulted in corporates adopting a non-committal attitude towards taking up office space during the first half.
“As for the office market, government initiatives for improving business sentiments, along with impetus on real estate FDI and REITs, will bode well for the country’s financial capital. This is expected to revive the absorption in office space over the next six months,” Dr Das added.