UB (Holdings) :: Business Line

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United Breweries (Holdings), the parent company of the grounded Kingfisher Airlines, was up more than 11 per cent on the bourses last week.

This was thanks to the Calcutta High Court dismissing United Bank of India’s decision to declare Kingfisher Airlines as a wilful defaulter.

The relief for Kingfisher Airlines meant a breather for UB (Holdings) too. Last month, United Bank of India had ‘identified’ UB (Holdings) also as a wilful defaulter, since it was a guarantor of loans to Kingfisher Airlines. But the relief may only be temporary. Since the Calcutta High Court's ruling was on technical grounds, United Bank of India plans to appeal the verdict.

The court rejected the bank’s decision on the grounds that its grievance redressal committee had four members instead of three — this was not as per regulatory guidelines.

The bank officials have indicated that they may set up a new committee with three members or move the Division Bench of the Calcutta High Court. The bank might have a strong case since according to its officials, the court had found no fault in its evidence against Kingfisher Airlines. UB Holdings’ woes may also increase with the Karnataka High Court admitting six winding-up petitions against the company.