Vijay Mallya declared bankrupt by UK court: This will clear the way for a group of Indian banks led by the State Bank of India (SBI) to seek a worldwide freezing order to seize Vijay Mallya’s Indian assets in order to recover debt owed by his now-defunct Kingfisher Airlines.
During a virtual hearing of the Chancery Division of the London High Court, Chief Insolvencies and Companies Court Judge Michael Briggs announced, “As of 15.42 [UK time], I adjudicate Dr Mallya bankrupt.”
The Indian bank consortium claimed that the bankruptcy order should be issued in their favour. They were represented by TLT LLP and Marcia Shekerdemian, a lawyer.
Meanwhile, Vijay Mallya, 65, is free on bail in the United Kingdom. In conjunction with unrelated extradition proceedings, a ‘secret’ legal matter, maybe connected to an asylum application, has yet to be handled.
VIJAY MALLYA’S APPEAL IS DENIED BY THE UNITED KINGDOM COURT.
Vijay Mallya’s lawyer, Philip Marshall, requested a stay and postponement of the bankruptcy judgement while legal challenges in Indian courts are still pending. However, the judge denied these petitions, concluding that there was “insufficient proof” that the debt will be paid in full to the petitioners within a reasonable time frame.
In addition, an application was submitted for authorization to appeal the bankruptcy order. Judge Briggs also turned down this request, noting that the appeal had “no real chance of success.”
13 banks are the petitioners in Vijay Mallya case
SBI, Bank of Baroda, Corporation Bank, Federal Bank Ltd, IDBI Bank, Indian Overseas Bank, UCO Bank, Jammu & Kashmir Bank, Punjab National Bank, Punjab & Sind Bank, State Bank of Mysore, United Bank of India, and JM Financial Asset Reconstruction Co. Pvt Ltd are among the petitioners in this lawsuit.
An additional creditor was among the petitioners, who had been seeking a bankruptcy order in the United Kingdom in connection with a judgement debt of more than GBP 1 billion.
The debt remains contested, according to Vijay Mallya’s legal team, and the ongoing procedures in India prevented a bankruptcy judgement from being obtained in the UK.
The debt in question includes both the principle and interest, as well as compound interest at a rate of 11.5 percent per year starting June 25, 2013. In India, Vijay Mallya has filed motions to challenge the compound interest charges.