Team  SoOLEGAL

UK court allows Indian banks to sell Vijay Mallya’s UK assets to recover debt

Team SoOLEGAL 9 May 2018 1:03pm

UK court allows Indian banks to sell Vijay Mallya’s UK assets to recover debt

London: In a first instance of its kind, a UK commercial court Judge Andrew Henshaw upheld a ruling by Debt Recovery Tribunal of an Indian state (Karnataka), which froze worldwide assets of Vijay Mallya. The implication of this order is that that Mallya is now barred from selling his assets in England and Wales.

The judgment delivered by London’s Commercial Court Queens Bench division, is a shot in the arm for consortium of 13 Indian banks to which Vijay Mallya owes Rs 6,000 crore plus interest.

The Indian banks had lent Rs 6,000 crore to now defunct Kingfisher Airlines. The ruling can also help Indian Government in the extradition case which it is fighting in a London court. The final hearing in the case in scheduled on July 11. In the same Mallya is presently out on a bail of 6,50,000 pound sterling.

In the hearing, Mallya's counsel Nicholas Peacock and George Heyman from the law firm Macfarlanes LLP argued that it was a case of business going bad which led to nonpayment of loans where as counsel Paul Gair, who represented Indian banks contended that it was a case of wilful default as Mallya had means to pay but still did not return the money. Judge Andrew Henshaw not only upheld the Indian Tribunal's ruling but also refused Mallya right to appeal. In the given circumstances Mallya's lawyer can now only approach UK’s Court of Appeal.

The tribunal ruling had earlier made Mallya to live on a weekly allowance of 5,000 pounds which Mallya's lawyers had got raised to 18,325.31 pounds a week through court ruling. In the meantime, a court in Delhi declared Mallya a proclaimed offender and order attaching of his assets for ignoring summons issued in FERA violations case.



Tagged: UK commercial court   Debt recovery tribunal   Vijay Mallya   Kingfisher Airlines  
Did you find this write up useful? YES 0 NO 0
×

C2RMTo Know More

Something Awesome Is In The Work

0

DAYS

0

HOURS

0

MINUTES

0

SECONDS

Sign-up and we will notify you of our launch.
We’ll also give some discount for your effort :)

* We won’t use your email for spam, just to notify you of our launch.
×

SAARTHTo Know More

Launching Soon : SAARTH, your complete client, case, practise & document management SAAS application with direct client chat feature.

If you want to know more give us a Call at :+91 98109 29455 or Mail info@soolegal.com