The Debt Recovery Tribunal (DRT) in Bengaluru on Friday dismissed a plea by Kingfisher Airlines accusing a consortium of banks led by State Bank of India of violating an agreement which led to the airline becoming defunct.The tribunal, hearing a case by the banks against liquor baron Vijay Mallya over unpaid dues of Rs 7,200 crore, rejected the interlocutory application (IA) by the airline which claimed the banks to have violated the terms of the master debts recast agreement (MDRA).
The banks and the airlines, which caused the collapse of the Mallya empire, had entered into the agreeement on October 21, 2010. The airline said the banks did not lend money on time for projects that could have helped in revival of the airline.
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DRT is overshooting the two month deadline given by the Supreme Court to complete hearing and deliver verdict on the case.
The bank counsel asked for the tribunal to reject the airline plea saying it had been given ample time to object to the filing.