Vijay Mallya wants to appeal bankruptcy to ‘repair damage to his reputation’

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LONDON: The lawyer for runaway Indian businessman Vijay Mallya told the High Court on Monday that his client wanted to appeal his bankruptcy order to “repair the damage done to his reputation and economy “.
Richard Hill QC told the Chancery Division of the High Court on Monday that the judge who made the bankruptcy order against Mallya in the UK on July 26, 2021 disregarded Mallya’s assets that Indian banks had already seized, nor Mallya’s ongoing legal proceedings in India to challenge the 11.5% interest rate on the DRT judgment debt.
The SBI-led consortium had filed the bankruptcy petition against Mallya in London for failing to clear a £1.05 billion (Rs 10,122 crore) judgment debt determined by the Karnataka Debt Recovery Tribunal (DRT) in 2017, which has been registered with the English courts . The debt stems from a personal guarantee Mallya gave on loans made to Kingfisher Airlines.
Mallya was declared bankrupt by the High Court Bankruptcy and Companies Court on July 26, 2021.
Hill said Indian banks, having realized MallyaThe assets of , now held the money for “all the principal of the judgment debt and a large portion of the interest portion thereof” and the only unpaid item was “a disputed portion of the interest” which Mallya was unable to to pay because of the seizure of his property.
Mallya also wants to appeal the amended petition brought against him, the court heard.
The banks, for their part, are appealing the ruling that their original bankruptcy petition breached insolvency laws because they failed to say they held security over some of Mallya’s assets in India. . In their amended petition, they were to promise to waive their security interest in Mallya’s Indian property in the event of a bankruptcy order being issued.
Marcia Shekerdemian QC, representing the banks, pleaded for the appeals to all be heard separately while Hill pleaded for them to be heard together to cut costs as “they had funding issues on their end” due to the economic position of Mallya. Judge Leech ruled that the three appeals should be dealt with in a combined hearing as soon as possible – likely in April 2023.
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