Vijay Mallya Bankrupt, Vijay Mallya: UK court declares Vijay Mallya bankrupt
New Delhi: A UK court on Monday issued an order declaring Vijay Mallya bankrupt. This has paved the way for a consortium of Indian banks led by the State Bank of India (SBI) to initiate confiscation of assets of the defunct airline Kingfisher on a global scale to recover its outstanding loans. During the online hearing of the case, Judge Michael Briggs, Chief Insolvency and Bankruptcy and Company Affairs Court (ICC), Chief of the Supreme Court Division of the High Court of London, said in his decision, ‘…I declare Dr Mallya insolvent. .’
Law firm TLT LLP and advocate Marcia Shekerdamian represented Indian banks and presented their arguments on the bankruptcy order. The businessman, 65, is currently out on bail in the UK. It is understood that he may remain on bail until the confidential legal proceedings on the issue of asylum in the country are resolved in a separate case related to the extradition process. His lawyer, Philip Marshall, urged an adjournment as well as a stay of the order in the case.
However, the judge turned down the request. He said that there is “insufficient evidence” that the loan to the petitioners will be fully refunded within a reasonable time. He also put forward an application seeking permission to appeal the bankruptcy order, which was denied by Judge Briggs.
A group of thirteen banks are the petitioners in the loan recovery case. The petitioners are legalizing the implementation of the bankruptcy order in respect of a billion British pounds debt. Mallya’s team of lawyers argued that the debt remains disputed and the proceedings in India preclude a bankruptcy order in the UK.
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