Liquor tycoon Vijay Mallya was on Wednesday denied permission to enchantment towards a UK High Court order refusing to dismiss chapter proceedings introduced by a consortium of Indian banks led by the State Bank of India (SBI), of their pursuit of debt associated to his now-defunct Kingfisher Airlines.
The 65-year-old businessman, who stays on bail within the UK, had filed a renewed software to enchantment towards UK court docket orders within the case from final 12 months, which had allowed for an adjournment of chapter proceedings till the debt difficulty earlier than the Supreme Court in India was determined upon.
His counsel, Philip Marshall, argued that the banks’ chapter petition ought to be dismissed somewhat than simply adjourned because the debt in query was disputed and being deliberated upon within the Indian courts.
“While this was a new point [before the appellate court], I do not accept it as a reasonable ground for appeal as the matter can be dealt with during proceedings that are still continuing,” mentioned Justice Colin Birss, throughout a distant listening to of the Chancery Appeals Division of the High Court in London.
Mallya’s barrister additionally raised the problem of “abuse of process” by the banks of their alleged non-disclosure of securities held in India and the existence of third-party safety within the type of property associated to United Breweries Holdings.
The choose reiterated that he had dismissed each these as ample grounds of enchantment in a ruling he handed down “on paper” in December final 12 months.
“There is no prospect of success of an appeal based on this ground, although this does not preclude reliance on it [third-party security] later,” the choose dominated.
The listening to kinds a part of a collection being heard by the High Court because the SBI-led consortium of 13 Indian banks had initiated the proceedings towards Mallya in December 2018 as a part of their efforts to recoup round 1.145 billion kilos in unpaid loans.
Both sides have deposed retired Supreme Court justices as skilled witnesses on Indian legislation in assist of their arguments for and towards a chapter order towards Mallya within the UK.
While the banks argue a proper to waive their safety over the Indian property concerned within the case to be able to recuperate their debt within the UK, attorneys for Mallya argue that the funds in query concerned public cash held by state-owned banks in India which precluded them from such a safety waiver.
The subsequent listening to to conclude closing submissions within the case is scheduled to be heard at a yet-to-be-agreed date within the coming weeks.
In parallel, Mallya’s attorneys have additionally been making use of to the court docket to ensure that him to satisfy his appreciable and mounting authorized prices from monies held with the Court Funds Office (CFO) as a part of the chapter proceedings.
In the final listening to associated to prices on Monday, Judge Sebastian Prentis on the Insolvency and Companies Court (ICC) division of the High Court had agreed solely to permit ample funds to cowl the listening to on Wednesday.
The difficulty of funds held by the court docket will now be absolutely handled at a listening to listed earlier than the High Court on January 22, throughout which it will likely be determined whether or not to sanction sums in direction of dwelling bills and authorized charges from the sale of a French luxurious property Le Grand Jardin final 12 months.
Meanwhile, the separate proceedings associated to the previous Kingfisher Airlines chief being extradited to India to face costs of fraud and cash laundering stay held up by a “confidential” authorized matter.