Vijay Mallya again throws bankruptcy into tall grass | India News
LONDON: indebted liquor magnate Vijay mallya escaped bankruptcy in London’s high court by a hair on Tuesday after the judge was persuaded that Mallya’s ongoing proceedings in Indian courts could invalidate the debt of the judgment against him in order to issue an order bankruptcy.
Judge Briggs of the Main Insolvency and Companies Court (ICC) suspended the bankruptcy order to allow another day of arguments on July 26 after Mallya’s attorney, Philip Marshall QC, noted that Mallya had an interest rate challenge in the Karnataka high court and a proposed settlement agreement in the Supreme Court of India, and affirmed that both could pay off the debt that he has.
On July 26, the parties will discuss whether the request for the imposition of a settlement agreement in India invalidates the court debt for the purpose of issuing a bankruptcy order.
“Justice Deepak Verma it says that the settlement procedure and the interest rate challenge have a reasonable prospect of success, “Marshall said, referring to testimony from the retired South Carolina judge who is serving as an expert witness.
“That would pay off all the debt. There are other assets too, not just Mallya’s and UBHLbut several family-owned businesses that would contribute assets to get rid of debt, “added Marshall.
A consortium of Indian banks is trying to bankrupt the Indian businessman at the ICC so that a bankruptcy administrator can be appointed to investigate his assets around the world and recover the 11 billion rupees he owes them under the personal guarantees you provided for loans made to Kingfisher Airlines.
“Why can’t a bankruptcy order be issued today?” Briggs asked. “After four hearings, what remains to be decided? There is no reason why it should not be done, as I have given permission for the bankruptcy petition to be amended and it has been amended.”
Marcia Shekerdemian QC, representing the banks, said: “We need to close this and it is wrong for a bankruptcy petition to remain on the court file for so long. Even if the debt on the petition is cut in half because of your challenge to the rate. of interest, your assets won’t. ” it will be enough to pay us in full. UBHL is in liquidation and those assets are not within the donation of Mallya or her associates or UBHL to deal with them, so their ‘compromise settlement procedures’ are going nowhere. All you are doing is asking for more time and the end may never be seen. It is time for this court … to bring this bankruptcy to its inevitable end. ”
On Tuesday, Briggs issued a ruling that allowed the banks’ modified bankruptcy petition in which they said they are willing, in the event of a bankruptcy order, to relinquish any collateral they had on Mallya’s assets for the benefit of all. creditors. The banks estimate the value of that security they have on Mallya’s assets to be around £ 230 million (Rs 2,386 crore). Mallya was denied permission to appeal this sentence.
“There are a number of people who would like to pay legal costs, but are inhibited by bankruptcy proceedings, which are much more restrictive than the freezing order,” Marshall said. “Mallya has not had the funds to train her Indian lawyers. We want a cost order to be provided to her Indian representatives, which will greatly facilitate the progress of the Indian proceedings,” he added.
He also noted that Covid substantially disrupted the judicial process in India and that another issue was “the question of the motivation of the petitioners”, given the “political background of the proceedings.”