19 May, 2021

Vijay Mallya’s bankruptcy petition dismissed: UK High Court lifts security cover from fugitive businessman’s property in India, eases SBI debt recovery path

 9 thousand crore rupees owed to Vijay Mallya from all banks

This loan from Banko was taken for Kingfisher Airlines

London court has slammed fugitive businessman Vijay Mallya on Tuesday. Vijay Mallya, who filed a bankruptcy petition in the High Court, is defeated here. After this decision of the court, the State Bank of India (SBI) can be easy to recover debt by selling its assets.

Mallya took a loan for Kingfisher Airline. The London High Court has lifted the security cover imposed on Mallya’s property in India. With this, the consortium of SBI-led Indian banks has come closer to recovering debt from Mallya. Now Indian banks will be able to recover the loan given to Kingfisher Airlines, which has been closed by capturing Mallya’s assets in India.

The bank's consortium tried in April. A consortium led by SBI, during a hearing in the London High Court in April, tried very hard to declare the fugitive businessman bankrupt. Vijay Mallya owes a debt of Rs 9,000 crore to the closed Kingfisher Airlines. Vijay Mallya used to say that the debt owed on him is public money. In such a situation, banks cannot declare him insolvent.

London court ruled in favor of Indian banks. Mallya had also claimed that the insolvency petition filed by Indian banks was outside the purview of the law. They cannot impose the security of their property in India, as it is against the public interest in India. Michael Briggs, the judge of the Chief Insolvency and Companies Court (ICC) of the London High Court, ruled in favor of Indian banks, saying there was no public policy that would provide security rights to Mallya's assets.

There may still be a delay in coming to India. Mallya is trying everything so that he does not have to come to India. Law experts say that his chances of winning the case in the UK are slim, but still his maneuver gives him a few more days to live in the UK. Experts say that almost all laws of Mallya's stay in Britain have been closed.

--------

Dr. Deepak Miglani

If you want to receive legal news on your mobile, please send your mobile no to legalbuddy@gmail.com


No comments: