Vijay Mallya Abandons UK Bankruptcy Annulment Bid, Banks' Pursuit Continues
Vijay Mallya, former head of Kingfisher Airlines, has withdrawn his application to annul a UK bankruptcy order. This allows creditors to continue pursuing his assets to recover an estimated £1.05 billion judgment debt. The decision follows an April High Court ruling upholding the bankruptcy order from over four years ago. The case stems from a 2017 Indian Debt Recovery Tribunal judgment registered in English courts, relating to Mallya's personal guarantee for Kingfisher Airlines loans. The Trustee in Bankruptcy can now proceed with efforts to recover assets for the consortium of banks led by the State Bank of India. Mallya remains on bail in the UK while a confidential legal matter is being resolved.
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Vijay Mallya, the former head of the now-defunct Kingfisher Airlines, has withdrawn his application to annul a UK bankruptcy order, allowing creditors to continue their pursuit of assets to recover an estimated £1.05 billion judgment debt.
Key Developments
- Mallya's legal team filed a notice of discontinuance, leading to the cancellation of a scheduled High Court hearing.
- This decision follows an April High Court ruling that upheld the bankruptcy order dating back over four years.
- The case originates from a 2017 registration of an Indian Debt Recovery Tribunal judgment in English courts.
- The judgment relates to a personal guarantee Mallya provided for Kingfisher Airlines loans.
Timeline of Events
| Date | Event |
|---|---|
| 2017 | Indian Debt Recovery Tribunal judgment registered in English courts |
| September 2018 | Banks serve Mallya with a bankruptcy petition |
| July 26, 2021 | Bankruptcy order issued against Mallya |
| April 2023 | High Court upholds the bankruptcy order |
| Present | Mallya discontinues application to annul bankruptcy order |
Implications
Continued Asset Pursuit
The Trustee in Bankruptcy can now proceed with efforts to recover assets to repay the consortium of banks led by the State Bank of India.
Stalled Annulment Attempt
Mallya's attempt to annul the bankruptcy order on grounds that the banks' debt had already been recovered in India appears to have hit a roadblock due to lack of progress in related Indian proceedings.
Ongoing Legal Matters
Mallya remains on bail in the UK while a confidential legal matter, believed to be related to an asylum application, is being resolved.
Consortium of Banks
The group of creditors pursuing the debt recovery is led by the State Bank of India and includes other major Indian banks. This consortium has been engaged in a prolonged legal battle to recover the substantial loans provided to Kingfisher Airlines.
The withdrawal of Mallya's application to annul the bankruptcy order marks a significant development in this long-running financial saga, potentially paving the way for creditors to intensify their efforts to recover the outstanding debt from Mallya's assets in the UK.
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