World Desk, Amar Ujala, London
Published by: Sanjeev Kumar Jha
Updated Mon, 26 Jul 2021 09:30 PM IST
After this decision, Indian banks will be able to easily take over the properties of Vijay Mallya.
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In the hearing held through virtual medium, Chief Insolvency and Company Court Judge Michael Briggs of the Chancery Division of the High Court said in his decision that I declare Mallya insolvent.
Law firm TLT LLP and barrister Marcia Shekerdamian appeared on behalf of the Indian banks during the hearing. The 65-year-old businessman, meanwhile, will remain out on bail in the UK till the legal proceedings related to his extradition are completed. Meanwhile, Mallya’s lawyer Philip Marshall sought a stay of the order till the legal challenges continue in the Indian courts.
However, his requests were turned down by the judge. The judge, in its conclusion, said that there was “insufficient evidence” that the loan would be fully refunded to the petitioners within a reasonable time. An application was also submitted seeking permission to appeal against the insolvency order, which was denied by Judge Briggs, saying that the appeal had no ‘principle of actual success’.
Many banks including SBI were the petitioners in this.
SBI is led by Bank of Baroda, Corporation Bank, Federal Bank Ltd., IDBI Bank, Indian Overseas Bank, Jammu and Kashmir Bank, Punjab and Sind Bank, Punjab National Bank, State Bank of Mysore, UCO Bank, United Bank of India and JM Financial. A consortium of 13 Indian banks, including Asset Reconstruction Company Private Limited, was the petitioner in the case.
Mallya’s legal team argued that the debt remains disputed and the ongoing proceedings in India obstruct a bankruptcy order in the UK. The loan in question includes principal and interest, as well as compound interest at the rate of 11.5 per cent per annum, with effect from June 25, 2013. Mallya has also made an application regarding compound interest charges in India.