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, on 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 RS 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.
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