Mallya Loses Security Waiver Petition Led By Indian Banks, 26 July Set As Final Date For Bankruptcy JudgementNew blow to Vijay Mallya. (Scott Heavey/Getty Images)

The High Court in London sustained an application by a consortium of Indian banks led by the State Bank of India (SBI) to amend their bankruptcy petition to waive their security over the Vijay Mallya's assets in India as reported by PTI.

Chief Judge, Insolvencies and Companies Court (ICC), Michael Briggs, gave his judgment in favour of the banks to declare there is no public policy that prevents a waiver of security rights, as claimed by Mallya's lawyers.

"I order that permission be given to amend the petition to read as follows: 'The Petitioners (banks) having the right to enforce any security held are willing, in the event of a bankruptcy order being made, to give up any such security for the benefit of all the bankrupt's creditors'," the judgment reads.

26 July is fixed as the date for final arguments for and against awarding a bankruptcy order against Mallya at a virtual hearing.

The banks accused Mallya of delaying the matter so that it is forgotten and called on the "bankruptcy petition to be brought to its inevitable end".

Mallya's lawyer had referenced witness statements of retired Indian judges in previous hearings to repeat that there is "public interest under Indian law" by the banks being nationalised.

Justice Briggs, however, favoured the submissions made by retired Indian Supreme Court Judge Gopala Gowda at a hearing in December 2020 in this view.

"In my judgement the simple stance taken by Justice Gowda that Section 47 PIA 1920 is evidence of the ability of a secured creditor to relinquish the creditor's security is to be preferred," Briggs noted.

The Indian banks, represented by the law firm TLT LLP and lawyer Marcia Shekerdemian, were also awarded costs in entirety for the petition hearings as the "overall successful" party in the case.

"Mallya should have been extradited by now. He was refused permission to go to the Supreme Court in May last year," Shekerdemian said, about one of Mallya's defence argument that the cases against him are "politically motivated".

Mallya is currently out on bail in the United Kingdom.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Advertisement