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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“Full prepared..going to win,” Congress MP KC Venugopal ahead of Kerala polls
EC not functioning as a neutral institution: Venugopal
Congress MP K. C. Venugopal on Monday raised concerns over the election schedule announced by the Election Commission of India for the upcoming Kerala Assembly election, questioning the timing of the poll dates and alleging that the schedule leaves limited time for campaigning.
Speaking to news agency ANI in Delhi after the poll panel announced elections in five states and Union Territories, Venugopal said that the Congress and the United Democratic Front (UDF) are fully prepared for the elections and confident of victory. At the same time, he questioned the pattern of dates announced by the Election Commission.
“We are fully prepared, we are going to win the elections... You can see how the Election Commission has set the dates. The first phase of elections is on the 9th, nominations are due until the 23rd, scrutiny is on the 24th, nominations can be withdrawn until the 26th, and after that, there are 11 days for campaigning,” he said.
“As for Kerala, there is Easter and Good Friday in the first week...The Election Commission could have announced the dates earlier... The counting date is on May 4th, so what was the point of holding elections in Kerala so early? What is their intention behind holding elections on the same day in Kerala, Puducherry, and Assam?... We are confident that we will win, but the people of the country are seeing the biased attitude of the Election Commission...,” he added.
He further stated that his party was ready for elections irrespective of the dates announced by the poll body.
“We are going to win the election. India's strategy has been set up. And we are all ready for winning this election. But one thing as far as declaring election, even though they are giving only for five days, we are going to win the election. We have no problem,” he said.
Detailing the poll schedule while questioning the time available for campaigning, he stated, “but you can see the pattern of date which the election commission announced. Yesterday they declared election, and today they notified us. The first phase of election on April 9th, filing of nomination will be over on the 23rd of this month, 24th scrutiny, 26th withdrawal of nomination. After 26, four plus seven, 11 days campaign.”
“As far as Kerala is concerned, April first week is a holy week. The holiday week means, Good Friday is there. Nobody will do anything on Good Friday. Easter is the big festival. These festivals are natural, you have to see that. Among the 11 days, working days, two, three days will go for holidays. Then hardly seven, eight days for campaigning in this election for candidates,” the Congress MP questioned.
The Congress leader said the Election Commission could have announced the dates earlier if there was a need for an early election schedule.
Questioning the urgency behind placing Kerala in the first phase of polling, he added that the counting date is much later.
“Which is the date of counting? Fourth May. Then what is the urgency of putting Kerala in the first phase without giving sufficient time for candidates? And putting Kerala, Puducherry, Assam together, what is the intention behind that?” Venugopal questioned.
He also alleged that the Election Commission was not functioning as a neutral institution.
“The Election commission is completely losing that capacity as a neutral player. You can see 14 of our prime minister's programs over and on the 15th they announce the election, 16th notification comes,” he said.
Venugopal further stated that such tactics would not affect the Congress’ prospects in the election.
“They think that this type of techniques and tactics, because of these techniques and tactics, UDF is going to lose, and Congress is going to lose. This is their complete dream only. This is not going to happen. We are very much confident at any cost, whether they are not giving any time also, we are going to win the election,” he said.
“But the people of India are watching this. The tricks of the election commission. To restrict the campaign, people of India are watching. This I want to bring into the notice of the nation. That's all,” Venugopal said.
The Election Commission of India on Sunday announced the schedule for the Kerala Assembly election. Polling in the state will be held in a single phase on April 9 while the counting of votes is scheduled to take place on May 4.
