A British court on Monday granted a bankruptcy order against Vijay Mallya, paving the way for a consortium of Indian banks led by the State Bank of India (SBI) to pursue a worldwide freezing order to seek repayment of debt owed by the now-defunct Kingfisher Airlines.
"As at 15:42 (UK time), I adjudicate Dr Mallya bankrupt," Chief Insolvencies and Companies Court (ICC) Judge Michael Briggs said in his ruling during a virtual hearing of the Chancery Division of the High Court in London.
The Indian banks, represented by the law firm TLT LLP and barrister Marcia Shekerdemian, had argued for the bankruptcy order to be granted in favour of the Indian banks.
The 65-year-old businessman, meanwhile, remains on bail in the UK while a "confidential" legal matter, believed to be related to an asylum application, is resolved in connection with the unrelated extradition proceedings.
His barrister, Philip Marshall, sought a stay as well as an adjournment of the order while legal challenges remain ongoing in the Indian courts. However, the requests were turned down by the judge who concluded that there was "insufficient evidence" that the debt will be paid back to the petitioners in full within a reasonable period of time.
He also put forward an application seeking permission to appeal against the bankruptcy order, which Judge Briggs refused as there was no "real prospect of success" of an appeal.
The petitioners were made up of SBI-led consortium of 13 banks, including Bank of Baroda, Corporation bank, Federal Bank Ltd, IDBI Bank, Indian Overseas Bank, Jammu & Kashmir Bank, Punjab & Sind Bank, Punjab National Bank, State Bank of Mysore, UCO Bank, United Bank of India and JM Financial Asset Reconstruction Co. Pvt Ltd as well as an additional creditor, had been pursuing a bankruptcy order in the UK in relation to a judgment debt which stands at over GBP 1 billion.
Vijay Mallya's legal team contended that the debt remains disputed and that the ongoing proceedings in India inhibited a bankruptcy order being made in the UK.
The debt in question comprises principal and interest, plus compound interest at a rate of 11.5 per cent per annum from 25 June 2013. Vijay Mallya has made applications in India to contest the compound interest charge.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
Bankrupt Millionaire's Sprite Bottle Auctioned By A Court In China, Internet Calls It 'Waste Of Resources' SEBI Bans Vijay Mallya From Trading In India's Securities Market Non-Bailable Warrant Against Vijay Mallya In 180-Crore Loan Default Case Chennai Doctor Stabbed 7 Times By Son Of Woman Who Had Cancer Video: Attacker Walks Away After Stabbing Doctor, People Shout "He Cut Him" Pak Influencer Deactivates Social Media Accounts After Private Video Leaks PM Modi's Govt Gives Highest Priority To Indian Diaspora: Jaishankar UPSC IFS Main Exam 2024 Admit Card To Be Out Tomorrow, Check Details Taliban Conducts 6th Public Execution Since Return To Power In 2021 Track Latest News Live on NDTV.com and get news updates from India and around the world.