New Delhi: A UK court on Monday declared fugitive liquor baron Vijay Mallya bankrupt.
The decision will pave the way for a consortium of Indian banks led by the State Bank of India (SBI) to recover loans given by the businessman to the now defunct Kingfisher Airlines.
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Mallya has been accused of willful default of over Rs 9,000 crore loan sanctioned by a consortium of 13 Indian banks to Kingfisher Airlines.
“by 15.42 hrs” [UK time]“I declare Dr Mallya bankrupt,” Chief Insolvency and Companies Court (ICC) Judge Michael Briggs said in his ruling during a virtual hearing of the Chancery Division of the High Court in London.
The UK court made the announcement after Indian banks, represented by law firm TLT LLP and barrister Marcia Scheckerdamian, argued for bankruptcy orders in favor of Indian banks.
The 65-year-old fugitive is living on bail in the UK while a “confidential” legal case is settled in connection with unrelated extradition proceedings.
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Meanwhile, Mallya’s counsel sought a stay of the order as well as a stay of the order, which was turned down by the judge, who concluded that there was “insufficient evidence” that the payment of the debt was due to the petitioners within a reasonable time. Will be done.
The lawyer also put forward an application seeking permission to appeal against the bankruptcy order, which Judge Briggs denied because the appeal had no “real likelihood of success”.
Mallya’s legal team argued that the debt remains disputed and the ongoing proceedings in India obstruct a bankruptcy order in the UK.
Mallya’s debt consists of principal and interest, as well as compound interest at the rate of 11.5 per cent per annum, as of June 25, 2013. Mallya has applied to India to counter compound interest charges.
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