Vijay Mallya’s bankruptcy order appeals return to London High Court

London, Feb 19 (PTI) Embattled businessman Vijay Mallya’s attempt to overturn a bankruptcy order imposed on him by the High Court in England over three years ago has returned for appeal hearings in London this week.

During a hearing at the Chancery Division in London on Wednesday, Justice Anthony Mann ruled against an adjournment petition by Mallya – who was not present and represented in court by recently appointed Zaiwalla & Co lawyer Kartik Mittal and barrister Mark Watson-Gandy.

The judge then went on to hear a set of interlinked appeals related to the 69-year-old businessman, separately wanted in India on fraud and money laundering charges.

The appeals this week relate to a consortium of Indian banks led by the State Bank of India (SBI) seeking the repayment of an estimated judgment debt of around GBP 1.05 billion owed by his now-defunct Kingfisher Airlines.

“I find no good reason to adjourn pending the outcome of Indian proceedings,” Justice Mann said, noting that significant appeal time had already been “wasted”.

He also went on to turn down as irrelevant Mallya’s attempt to introduce fresh evidence in the case, including Union Finance Minister Nirmala Sitharaman’s intervention in Parliament in December last year stating that Rs 14,131 crores related to Mallya’s properties had been restored to public sector banks (PSBs).

Justice Mann is hearing appeals related to a decision of Chief Insolvencies and Companies Court (ICC) Judge Michael Briggs, made in the context of bankruptcy proceedings initiated by the banks against Mallya around six years ago.

The first appeal, referred to as the security appeal, was initiated by the banks and challenges Judge Briggs’ conclusion that the banks were “estopped by reason of an Indian court judgment” from denying that they hold security over certain of Mallya’s assets.

“Dr Mallya’s arguments (which have evolved somewhat) are based upon the (surprising) proposition, rejected by the Chief Judge (Briggs), that there is a principle of Indian law which somehow precludes the banks from giving up their security, and that this principle is somehow relevant to the English bankruptcy proceedings,” reads one of the arguments made by the lawyers appearing on behalf of the Indian banks – represented by TLT LLP and barrister Tony Beswetherick.

During the latest set of hearings, expected to conclude on Friday, two further appeals against the amendment of the bankruptcy order and the July 2021 bankruptcy order itself are to be heard.

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.

He has long been arguing that the Indian banks have been pursuing the same debt against him both in India and the UK.

The hearings in the case of State Bank of India and Others date back to May 2018, when the banks were granted a worldwide freezing order (WFO) based on a judgment of the Bangalore Debt Recovery Tribunal (DRT).

Since then, there have been a series of hearings in this case, which led to a bankruptcy order against Mallya on July 26, 2021. Appeals against that order and related matters have remained ongoing ever since. PTI AK GSP GSP

Source: PTI