38.6c New Delhi, India, Thursday, March 28, 2024
Crime, Police And Law

Indian Banks Led by SBI Pursue Vijay Mallya Bankruptcy Order in UK Court

By Manthan Pandit      09 July, 2020 05:01 PM      0 Comments
Indian Banks Led by SBI Pursue Vijay Mallya Bankruptcy Order in UK Court

Indian banks' consortium led by the State Bank of India (SBI) is appealing its bankruptcy order against liquor tycoon Vijay Mallya in the English High Court in an attempt prove that any settlement bid he has made is now dead in the water.

At a hearing on Tuesday,7th July 2020, in the High Court 's insolvency division in London, Justice Michael Briggs heard representations from the banks, put forther by barrister Marcia Shekerdemian, that seeking the bankruptcy order was appropriate because the banks were not secured creditors after all.

This follows the judgment of Justice Briggs back in April when he ruled that Mr. Mallya should be given time before a decision on a bankruptcy order is taken in London.

The legal team of the banks argued that United Breweries Holdings Limited's (UBHL) properties, depending on Mr. Mallya as part of a second settlement deal, are obviously under the control of its Official Liquidator and thus not open to Mr. Mallya or UBHL 's former management.

This means that the Second Settlement Offer is now dead in the water because neither Vijay Mallya nor its associates nor the former management has any leverage over UBHL 's properties, which they claimed was part of that deal.

Mr. Mallya's legal team, headed by barrister Philip Marshall, opposed securing creditors for the banks and withdrawing the petition.

A reference has also been made to the parallel extradition proceedings against Mr. Mallya, with the banks pointing out that the 64-year-old was denied permission to appeal to the High Court on the grounds that, because of his political views, he would not receive a fair trial in India.

The court in question does not look beyond such decisions, it was been noted. 

Mr. Mallya's extradition to India on charges of fraud and money laundering was requested in February 2019, according to the United Kingdom Home Office, although it cannot comment on a pending court case.

Despite all legal redress options exhausted in the UK after being refused his permission to appeal at the UK Supreme Court in May, the next steps in the extradition process remain unclear as the British government does not officially accept or reject any asylum claims made to it.

The SBI-led consortium includes Bank of Baroda, Corporate Bank, Federal Bank Ltd, IDBI Bank, Indian Overseas Bank, Jammu & Kashmir Bank, Punjab & Sind Bank, Punjab National Bank, State Bank of Mysore, UCO Bank, United Bank of India and JM Financial Asset Reconstruction Co. Ltd Pvt.

In December 2018, it had launched bankruptcy proceedings against Mr. Mallya as part of attempts to recoup some 1.145 billion pounds in unpaid loans. 

Judge Briggs has reserved his decision after the hearing this week on the potential direction of the case and will hand down the verdict at a later date.



Share this article:



Leave a feedback about this
TRENDING NEWS

delhi-high-court-warns-against-aaps-call-for-protest-in-court-premises-amid-kejriwal-arrest
Trending Judiciary
Delhi High Court Warns Against AAP's Call for Protest in Court Premises Amid Kejriwal Arrest

Delhi High Court warns Aam Aadmi Party's Legal Cell of severe action for any protest in Delhi Courts against Arvind Kejriwal's arrest.

27 March, 2024 05:57 PM
gross-negligence-and-illegality-bombay-hc-orders-legal-action-against-doctor-for-improper-post-mortem-examination
Trending Judiciary
Gross negligence and illegality: Bombay HC orders legal action against doctor for improper post mortem examination [Read Order]

Bombay HC orders legal action to be taken against a doctor for negligence during post-mortem examination.

27 March, 2024 06:33 PM

TOP STORIES

global-entertainment-giants-warner-bros-netflix-amazon-get-relief-from-delhi-hc-in-copyright-protection-case
Trending Business
Global entertainment giants Warner Bros, Netflix, Amazon get relief from Delhi HC in copyright protection case

Delhi HC grants relief to global entertainment giants like Netflix, Amazon, Warner Bros, ordering takedown of copyrighted content on rogue websites.

22 March, 2024 12:13 PM
arvind-kejriwal-arrested-can-cm-administer-a-region-while-being-in-jail
Trending Top Stories
Arvind Kejriwal Arrested | Can CM administer a region while being in jail?

Will President's rule be imposed in Delhi after Kejriwal’s arrest? Read the full article to know more.

22 March, 2024 03:16 PM
merely-because-you-are-politician-cant-bypass-statutory-remedies-procedure-sc-refuses-to-consider-bail-by-kavitha
Trending Judiciary
'Merely because you are politician, can't bypass statutory remedies, procedure,' SC refuses to consider bail by Kavitha

Supreme Court denies bail to politician Kavitha in Delhi Liquor Policy Scam; ED alleges Rs 100 crore illegal gratification.

22 March, 2024 03:34 PM
ponmudi-to-be-sworn-in-as-minister-tn-governor-relents-before-sc
Trending Judiciary
Ponmudi to be sworn in as Minister, TN Governor relents before SC

Tamil Nadu Governor relents to Supreme Court's order, agrees to swear in DMK leader K Ponmudi as Minister after court's rap.

22 March, 2024 03:54 PM

ADVERTISEMENT


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email