Kingfisher Airlines has dragged United Bank of India (UBI) to court. Kingfisher has filed petition in Kolkata High Court against United Bank and seeking stay on UBI declaring co and Vijay Mallya as willful defaulter. They declared the now grounded airline and its chairman Mallya on the day KFA and Mallya were supposed to meet with United Bank of India to present their case.
Although not much details have been received about the case, but it has been in works for quite a while. They have gone ahead and filed the case insisting that they should not hold the company as the willful defaulter and also that United Bank has insisted Vijay Mallya and the Kingfisher officials to appear in person for the briefing of the same at United Bank of India.
KFA owes a consortium of lenders led by SBI of over 7000 crore of which only 600 crore has been recovered. Banks are fighting at least 14 cases against KFA for debt recovery.