The Debt Recovery Tribunal (DRT) on Friday dismissed the interlocutory application (IA) filed by Kingfisher Airlines (KFA) accusing the SBI-led banks’ consortium of violating a loan recast agreement.
Earlier, KFA had filed an IA seeking the amendment of the original application and also a counter-petition seeking around Rs. 3,000 crore from the banks for violation of what is called the Master Debt Recast Agreement (MDRA). The banks and Kingfisher Airlines had entered into this agreement on October 21, 2010.
In its application, the airline claimed that the violation by the banks resulted in losses for the company. KFA’s counsel had submitted that the banks did not lend money on time for new projects as per the agreement.
“At every stage the banks refused to comply with the MDRA by advancing or dispersing certain amounts which they should have done as per the agreement,” KFA’s counsel had earlier said.
He had even alleged that the banks tried to put down every attempt by KFA to get back on its feet.
Meanwhile, the banks on Tuesday prayed that the airline’s application should not be allowed as the limitation period to claim amendment had elapsed.
Opposing the claim, the counsel for SBI-led consortiumsaid that the original application was filed on June 25, 2013 and after completion of pleadings, the plaintiffs got ample time. Hence, it should not be accepted at the fag end of the proceedings.
An SBI-led 17-bank consortium had moved the DRT for the recovery of more than Rs.9,000 crore loans given to Mr. Mallya’s defunct airline.
