Indian banks win UK bankruptcy appeal in Vijay Mallya case
London, Apr 9 (PTI): A consortium of Indian banks, led by State Bank of India, on Wednesday won their court appeal in London to uphold a bankruptcy order against Vijay Mallya in a long-standing legal battle seeking repayment of a judgment debt owed by his now-defunct Kingfisher Airlines.
High Court judge Anthony Mann ruled in favour of the banks to allow an appeal heard in February, while refusing two applications seeking permission to appeal filed by the 69-year-old businessman, declared a fugitive and wanted for fraud and money laundering charges in India.
“The banks’ pleaded position on security was one which they were entitled to adopt,” Justice Mann ruled.
“The bottom line in relation to this is that the bankruptcy order stands,” he concludes.
Law firm TLT LLP, representing the banks, noted that the ruling confirmed the banks did not hold security over Mallya’s assets and that the bankruptcy petition was correct. The court also found that the realisations from assets attached by the Enforcement Directorate (ED) were conditional and did not discharge the debt under English law.
“This is a significant result for the banks. TLT are pleased to have delivered this outcome, having acted for the banks since 2017 in relation to the DRT (Debt Recovery Tribunal) judgment of GBP 1.12 billion, obtained against Dr Mallya,” said Nick Curling, legal director at TLT LLP.
The case dates back to 2017 when the banks registered the DRT’s judgment in the English courts, which pertained to a personal guarantee Mallya had provided in relation to loans made to Kingfisher Airlines. The banks then served Mallya with a bankruptcy petition in September 2018, which he opposed on multiple grounds.
In April 2020, London’s Insolvency & Companies Court (ICC) ruled that the banks held security over Mallya’s assets, rendering the bankruptcy petition partially defective under Section 269 of the Insolvency Act 1986. The banks appealed this finding, and in March 2021 Justice Snowden permitted them to bring the security appeal, which was heard this year and has now been concluded.
In the interim, the banks amended the bankruptcy petition, agreeing they would relinquish any security held if Mallya was declared bankrupt. Mallya had opposed this amendment, arguing it was contrary to Indian law and public policy. However, in April 2021, the ICC ruled that the amendment was not contrary to Indian law or public policy.
“Despite Mallya’s subsequent appeals, including an appeal against the amendment decision and the Bankruptcy Order itself, Sir Anthony Mann sitting as a judge in the High Court delivered a decisive judgment on 9 April 2025. The court allowed the Security Appeal in favour of the banks, refused Mallya’s permission to bring the amendment appeal and the appeal against the bankruptcy order and ultimately upheld the bankruptcy order,” added TLT.
Mallya, who was declared bankrupt in July 2021, is pursuing a separate annulment application in the UK court, which is now scheduled for a directions hearing in October.
“In circumstances where even the (Indian) government confirms that the assets were ‘restored’, it is fanciful to imagine that those recoveries are in any sense conditional. Mallya will, on this basis, pursue with vigour his application to annul the Bankruptcy Order in England in conjunction with proceedings in the Karnataka High Court to compel the banks to provide an accounting and come clean,” said Leigh Crestohl, Mallya’s lawyer at Zaiwalla & Co.
Meanwhile, Mallya 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.
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Where is Priyanka Gandhi? Her voter lynched in Mangaluru, still no response
A voter from Wayanad, the very constituency that elected Priyanka Gandhi to the Lok Sabha with a record margin of over four lakh votes, has been brutally murdered in Mangaluru. Yet, there has been no statement, no visit, and no visible intervention from the newly elected Member of Parliament.
Ashraf, a mentally ill man from Wayanad, was reportedly lynched by a mob of Hindutva activists on the outskirts of Mangaluru. Eyewitness accounts suggest that he was chased and beaten mercilessly, despite some locals pleading with the attackers to stop. However, the police allegedly attempted to suppress the nature of the crime, initially dismissing it as a case of drunkenness or an accident. Bruises on Ashraf’s body were ignored, and for two days, the case was handled with silence and negligence.
It was only due to consistent media reporting and the voices of political and social leaders that the truth began to emerge. It is now widely believed that around 30 individuals were involved in the brutal assault on Ashraf. The attempt to hush up the murder has drawn serious questions about the functioning and intention of the police.
Adding to the controversy, Karnataka Home Minister Dr G Parameshwar claimed that the attack happened because Ashraf allegedly shouted “Pakistan Zindabad.” This statement has further derailed the investigation, critics say. It has triggered outrage across Karnataka, with many asking how the Home Minister had access to information about such a slogan but did not know the basic fact that Ashraf was mentally unwell.
Even more disturbing is the silence of other senior leaders. The District In-charge Minister Dinesh Gundu Rao's reference to Ashraf as someone from a “different community” has also sparked public anger. Citizens are asking how a Muslim man from Wayanad can be referred to as a non-Muslim. The statement has only added to the confusion and suspicion around the case.
Now, Ashraf’s family has taken his body back to Wayanad. And the questions remain unanswered: Will Priyanka Gandhi visit Ashraf’s home? Will she express solidarity with his grieving family? Will she demand that the Karnataka government take strict action against the killers?
The voters of Wayanad are watching. Will Priyanka Gandhi call Karnataka’s Home Minister and question him about his controversial statement? A statement that mirrored the claims made by the very people accused in the case? Since when did statements made by the accused become the basis of public messaging in a murder case?
Will the Wayanad MP hold the Congress government in Karnataka accountable for failing to act promptly? Will she ask why neither the Chief Minister nor the Deputy Chief Minister has spoken on the matter?
The Congress came to power in Karnataka promising justice, equality, and safety for all communities. Karnataka’s Muslim voters, especially, placed their faith in the Congress by turning away not just from the BJP but also from the JDS. What are they being given in return?
At a time when Priyanka Gandhi should have been standing with her constituents and in Parliament against the Waqf Amendment Bill, she was reportedly abroad during the passing of the Waqf Amendment Bill. Many now wonder if this absence is a convenient escape from politically sensitive issues.
If she is back, it is time for her to act. The family of Ashraf, a man from her own constituency, deserves justice. Every single accused in this lynching case—from those who carried out the violence to those who orchestrated it—must face the maximum punishment under the law.
If not, it will not just be Ashraf’s family, but the entire electorate of Wayanad that will be left questioning: why did Priyanka Gandhi contest from their constituency where the party ticket was to be given to a Muslim party worker?
