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Supreme Court quashes UBHL's plea against court order to wind up Vijay Mallya's firm

SBI senior counsel Mukul Rohatgi, informed the apex court that Mallya is facing bankruptcy proceedings in the UK, besides extradition proceedings

twitter-logoBusinessToday.In | October 26, 2020 | Updated 15:49 IST
Supreme Court quashes UBHL's plea against court order to wind up Vijay Mallya's firm

The Supreme Court (SC) on Monday, quashed fugitive industrialist Vijay Mallya's United Breweries Holdings Limited's (UBHL) plea challenging a Karnataka High Court order to uphold the winding up of the company for recovery of dues payable by Kingfisher Airlines Ltd.

A bench led by Justice UU Lalit refused to entertain the plea filed by UBHL. The top court asserted the winding up of the 102 year old parent company of the UB group.

State Bank of India (SBI) on October 8 urged the SC to dismiss UBHL's plea. SBI senior counsel Mukul Rohatgi, informed the apex court that Mallya is facing bankruptcy proceedings in the UK, besides extradition proceedings. He further informed the court that so far, around Rs 3,600 crore have been recovered but Mallya and UBHL still owe Rs 11,000 crore to the consortium of banks led by SBI.

Rohatgi contended that the Enforcement Directorate (ED) should not have attached the properties of the company as these were encumbered assets and thus banks had the first claim over the assets.

UBHL's advocate, CS Vaidyanathan had submitted before the SC that since the company's assets exceeded the total debt, the company should not have been directed to wind up. He persisted that the ED had attached many assets of the company, as a result of which none was available to the banks.

Mallya has been in the UK since 2016 and remains on bail on an extradition warrant executed three years ago by Scotland Yard in 2017. In April 2020, the plea file by Vijay Mallya against his extradition to India was rejected by London High court.

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