Vijay Mallya gets bankruptcy reprieve from UK High Court
London: In a relief to liquor baron Vijay Mallya, the High Court in London has deferred hearings on a plea by the SBI-led consortium of Indian banks, seeking the indebted tycoon to be declared bankrupt to enable them recover a loan of around 1.145 billion pounds from him.
Justice Michael Briggs of the insolvency division of the High Court granted relief to Mallya, ruling that he should be given time till his petitions to the Supreme Court of India and his settlement proposal before the Karnataka High Court be determined, allowing him time to repay his debts to the banks in full.
Chief Insolvency and Company Court judge Briggs, in his verdict delivered Thursday, said there is no obvious advantage to the banks to pursue this class action at this point in time.
This bankruptcy petition is by any measure extraordinary. The banks are pressing for a bankruptcy order at a time when there are extant proceedings in India, read the judgment.
In my judgment the banks are secured, at least in part The hearing of the petition should be adjourned for the purpose of amendment and for time to pay the debts in full, it noted.
A consortium of Indian public sector banks led by the State Bank of India had sought a bankruptcy order against Mallya as part of efforts to recoup around GBP 1.145 billion of unpaid loans from Mallya.
Judge Briggs had reserved his judgment after hearing arguments from both sides in December last year over the loans to Mallya's now-defunct Kingfisher Airlines.
In his judgment, the judge concluded that the legal cases being pursued by Mallya in India stood a reasonable prospect of success.
Although the petition to the Supreme Court and proposal before the Karnataka High Court are not guaranteed to succeed, they are genuine. The evidence supports the view that the petitions stand a reasonable prospect of success, he said.
According to the court document, the judgment on the bankruptcy petition was produced in December last year and circulated in January this year but its handing-down was adjourned for further argument at the request of the parties.
The parties agreed to a hearing after 1 June 2020. The outbreak of Covid-19 has made fixing a date uncertain. In my judgment it is in the interests of the administration of justice and in the public interest that this judgment be handed down now, the ruling noted.
While the banks had argued for a bankruptcy order to ensure they receive what is owed to them amid a multiplicity of creditors, Mallya's lawyers stressed that the Indian banks were identified as secured creditors by Indian courts, which makes the bankruptcy petition in the UK court unfair.
Why should we take less than everything we are owed, said Marcia Shekerdemian, the barrister for the Indian banks, referring Mallya's settlement offers.
During the hearing last year, the court had also heard that the banks do not accept the former Kingfisher Airlines boss' assertion that most of his assets are in India and to a lesser extent worldwide.
A villa in France and assets spread across the British Virgin Islands, a trust registered in the Caribbean nation of St Kitts & Nevis and the Indian Empress superyacht in Malta were some of Mallya's worldwide assets referred to during the course of the hearing.
Mallya's legal team, led by barrister Philip Marshall, sought dismissal of the bankruptcy petition, arguing that their client was being unfairly pursued by the banks in India and the UK on opposite grounds.
Payment has been inhibited by virtue of the intervention by the Enforcement Directorate of India the banks are seeking a bankruptcy order against Dr Mallya for non-payment but have created a situation where he can't make a payment, Marshall told the court.
A previous UK High Court ruling had refused to overturn a worldwide order freezing Mallya's assets and upheld an Indian court's ruling that the consortium of 13 Indian banks were entitled to recover funds amounting to nearly GBP 1.145 billion.
The banks then launched efforts to recover dues as part of the freezing order, with the bankruptcy petition aimed at seizing UK-based Mallya's assets to recover the dues.
Meanwhile, Mallya remains on bail pending a UK High Court ruling in the extradition proceedings brought by India in relation to charges of fraud and money laundering amounting to an alleged Rs 9,000 crores.
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Modi-Carney talks: India, Canada seal landmark uranium deal; set USD 50 bn trade target
New Delhi (PTI): India and Canada on Monday sealed key pacts on supplies of Uranium and critical minerals and vowed to soon conclude a comprehensive economic partnership agreement, with Prime Minister Narendra Modi and his Canadian counterpart Mark Carney finalising a new framework to shore up ties including taking bilateral annual trade to USD 50 billion by 2030.
In their wide-ranging talks, the two leaders also pledged to ramp up cooperation in defence, critical technologies, small and modular nuclear reactors, education and renewable energy as Modi said the relations between the two countries are now filled with new energy, mutual trust and positivity.
Canada is set to support India's civil nuclear energy sector under the USD 2.6 billion uranium supply agreement.
The prime minister said both sides agreed that terrorism, extremism, and radicalisation are common and serious challenges not only for India and Canada but for all humanity. "Our close cooperation against these is crucial for global peace and stability," he said.
Modi and Carney also deliberated on the precarious security situation in West Asia with PM Modi asserting that India supports the resolution of all conflicts through dialogue and diplomacy.
"The current situation in West Asia is a matter of deep concern for us. India supports the resolution of all disputes through dialogue and diplomacy. We will continue to work with all countries to ensure the safety of all Indian citizens in the region," the prime minister said in his media statement.
The major outcomes of the Modi-Carney talks were their decision to expand trade relations, a move that comes amid Canada's increasingly frosty economic ties with the Trump administration.
The fresh move to bolster ties came as part of ongoing efforts by the two sides to reset the relations that came under severe strain following a diplomatic row over the killing of a Khalistani separatist in 2023.
"Our goal is to reach USD 50 billion in trade by 2030. Unlocking the full potential of economic cooperation is our priority. Therefore, we have decided to finalise the Comprehensive Economic Partnership Agreement soon.
"This will create new investment and employment opportunities in both countries," Modi said.
"Canada's pension funds have invested USD 100 billion in India. This symbolises their deep belief in India's growth story," he said.
The volume of two-way annual trade at present is around USD 13 billion.
The prime minister said the Memorandum of Understanding (MoU) on critical minerals will strengthen resilient supply chains. Canada is known for its significant reservoir of critical minerals and rare earth materials.
"In the energy sector, we are building a next-generation partnership, which will focus on hydrocarbons as well as renewable energy, green hydrogen and energy storage," Modi said.
"In civil nuclear energy, we have signed a landmark deal for long-term uranium supply. We will also work together on small modular reactors and advanced reactors," he said.
Modi said the growing cooperation between the two countries in the field of defence and security symbolises the deep mutual trust and the maturity of the relationship.
"We will work to enhance defence industries, maritime domain awareness and military exchanges. To this end, today we have decided to establish the India-Canada defence dialogue," he said.
The prime minister also highlighted the expansion of two-way ties in the education sector.
"New partnerships between several universities in AI, healthcare, agriculture and innovation are being announced. We also agreed on Canadian universities opening campuses in India," he said.
The prime minister also made a mention of how India and Canada share an "unwavering belief" in democratic values.
"We celebrate diversity. The well-being of humanity is our shared vision. This vision inspires us to move forward in every field. Today, we discussed transforming this vision into a next level partnership," he said.
In his remarks, Carney mentioned the future of India-Canada energy ties.
"Today, we are launching a strategic energy partnership with significant potential to expand bilateral energy trade. We've signed a new critical minerals partnership spanning development, processing and secure supply chains for clean energy, electric vehicles and advanced manufacturing," he said.
"We're deepening our cooperation in clean energy, expanding collaboration across wind, solar and hydrogen, because Canada has big plans as well," he said.
Carney described the uranium supply agreement as a reflection of shared commitment to clean, reliable energy.
"All of these agreements under one planet are the beginning of a new, prosperous relationship that will offer generational opportunities for workers and businesses in both their countries and which will protect the planet for future generations," he said.
Carney landed in New Delhi on Sunday after spending two days in Mumbai, where he met several industry leaders.
In the face of its tense trade ties with the Trump administration, Canada is looking at building a stronger, independent and more resilient economy.
In the last few months, India and Canada have taken several steps to normalise their relations.
India-Canada ties hit rock bottom following then-Prime Minister Justin Trudeau's allegations in 2023 of a potential Indian link to the killing of Hardeep Singh Nijjar. India dismissed Trudeau's accusation as "absurd".
In October 2024, India recalled its high commissioner and five other diplomats after Ottawa attempted to link them to the Nijjar case. India also expelled an equal number of Canadian diplomats.
However, Liberal Party leader Carney's victory in the parliamentary election in April last year helped in beginning the process to reset relations.
Subsequently, both sides have already posted their high commissioners in each other's capitals.
Last June, Modi travelled to Kananaskis, Canada, to attend the G7 summit. Modi and Carney held extensive talks on the margins of the summit with a focus on rebuilding the ties.
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