THE London high court on Monday (26) declared fugitive Indian businessman Vijay Mallya bankrupt. This gave a consortium of Indian banks led by the State Bank of India (SBI) a victory in the case related to recovering debt from loans paid out to Mallya’s now-defunct Kingfisher Airlines.
The verdict also opened the doors for Mallya’s assets to be seized. He said that he would appeal against the court order but was refused permission.
“As at 15.42 [UK time], I adjudicate Dr Mallya bankrupt,” Chief Insolvencies 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 court had upheld during a virtual hearing in May an application to amend the bank’s bankruptcy petition in favour of waiving their security over the businessman’s assets in India.
Mallya, 65, remains on bail in the UK while a confidential legal issue, believed to be related to an asylum application, is resolved in connection with unrelated extradition proceedings.
Meanwhile, the SBI-led consortium of 13 Indian banks is after a bankruptcy order in the UK in relation to a judgment debt, which stands at over £1 billion. Mallya’s legal team said the debt remains disputed.
The debt in question includes principal and interest along with a compound interest at a rate of 11.5 per cent per annum from June 25, 2013. Mallya has also made applications in India to contest the compound interest charge.