Indian banks win UK bankruptcy appeal in Vijay Mallya case

advertisement

London, Apr 9: A consortium of Indian banks, led by State Bank of India, on Wednesday won their court appeal in London to uphold a bankruptcy order against Vijay Mallya in a long-standing legal battle seeking repayment of a judgment debt owed by his now-defunct Kingfisher Airlines.

advertisement

High Court judge Anthony Mann ruled in favour of the banks to allow an appeal heard in February, while refusing two applications seeking permission to appeal filed by the 69-year-old businessman, declared a fugitive and wanted for fraud and money laundering charges in India.

“The banks’ pleaded position on security was one which they were entitled to adopt,” Justice Mann ruled.

“The bottom line in relation to this is that the bankruptcy order stands,” he concludes.

Law firm TLT LLP, representing the banks, noted that the ruling confirmed the banks did not hold security over Mallya’s assets and that the bankruptcy petition was correct. The court also found that the realisations from assets attached by the Enforcement Directorate (ED) were conditional and did not discharge the debt under English law.

“This is a significant result for the banks. TLT are pleased to have delivered this outcome, having acted for the banks since 2017 in relation to the DRT (Debt Recovery Tribunal) judgment of GBP 1.12 billion, obtained against Dr Mallya,” said Nick Curling, legal director at TLT LLP.

The case dates back to 2017 when the banks registered the DRT’s judgment in the English courts, which pertained to a personal guarantee Mallya had provided in relation to loans made to Kingfisher Airlines. The banks then served Mallya with a bankruptcy petition in September 2018, which he opposed on multiple grounds.

In April 2020, London’s Insolvency & Companies Court (ICC) ruled that the banks held security over Mallya’s assets, rendering the bankruptcy petition partially defective under Section 269 of the Insolvency Act 1986. The banks appealed this finding, and in March 2021 Justice Snowden permitted them to bring the security appeal, which was heard this year and has now been concluded.

In the interim, the banks amended the bankruptcy petition, agreeing they would relinquish any security held if Mallya was declared bankrupt. Mallya had opposed this amendment, arguing it was contrary to Indian law and public policy. However, in April 2021, the ICC ruled that the amendment was not contrary to Indian law or public policy.

“Despite Mallya’s subsequent appeals, including an appeal against the amendment decision and the Bankruptcy Order itself, Sir Anthony Mann sitting as a judge in the High Court delivered a decisive judgment on 9 April 2025. The court allowed the Security Appeal in favour of the banks, refused Mallya’s permission to bring the amendment appeal and the appeal against the bankruptcy order and ultimately upheld the bankruptcy order,” added TLT.

Mallya, who was declared bankrupt in July 2021, is pursuing a separate annulment application in the UK court, which is now scheduled for a directions hearing in October.

“In circumstances where even the (Indian) government confirms that the assets were ‘restored’, it is fanciful to imagine that those recoveries are in any sense conditional. Mallya will, on this basis, pursue with vigour his application to annul the Bankruptcy Order in England in conjunction with proceedings in the Karnataka High Court to compel the banks to provide an accounting and come clean,” said Leigh Crestohl, Mallya’s lawyer at Zaiwalla & Co.

Meanwhile, Mallya remains on bail in the UK while a “confidential” legal matter believed to be related to an asylum application is resolved in connection with the unrelated extradition proceedings. (PTI)

advertisement

Hot this week

Meghalaya man missing in Bangkok

Shillong, Jan 10: A 57-year-old Meghalaya resident, Mr. Treactchell...

Pay hike of Assam ministers, MLAs likely as 3-member panel submits report

Full report likely by Oct 30 Guwahati Sept 25: There...

ANSAM rejects Kuki’s separate administration demand, says bifurcation not acceptable

Guwahati, Sept 8: Rejecting the separate administration demand of...

Meghalaya Biological Park Inaugurated After 25 Years: A New Chapter in Conservation and Education

Shillong, Nov 28: Though it took nearly 25 years...

Meghalaya’s historic fiber paves the way for eco-friendly products and sustainable livelihoods

By Roopak Goswami Shillong, Oct 25: From making earbuds to...

Schools shut across six border districts in Punjab following ‘Operation Sindoor’

Chandigarh, May 8: Amid soaring tension between India and...

Civil defence mock drills conducted in all districts

Shillong, May 8: Meghalaya on Wednesday witnessed the conduct...

Rakkam bats for Sixth Schedule, ILP to curb illegal immigration

Shillong, May 8: Cabinet minister Rakkam A Sangma on...

City hospital receives major boost from govt 

CM hands over Rs 1 crore to Nazareth Hospital...

CM assures support for Mawsynram road project

Shillong, May 8: A delegation of traditional heads led...

Poor network connectivity key challenge in Garo Hills

Tura, May 8: Meghalaya Chief Secretary D.P. Wahlang on...

Four Bangladeshis held

Shillong, May 8: Four Bangladesh nationals were detained in...
spot_img

Related Articles

Popular Categories

spot_imgspot_img