The once upon a time ‘King Of Good Times’ Vijay Mallya has got huge breather from a court in United Kingdom. In a significant ruling 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.
It may be recalled that 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 1.145 billion pounds of unpaid loans from Mallya.
Mallya had in past in tweet once again reiterated his desire to pay 100 per cent of the amount due , as he wrote , I have made repeated offers to pay 100 % of the amount borrowed by KFA to the Banks. Neither are Banks willing to take money and neither is the ED willing to release their attachments which they did at the behest of the Banks.
I have made repeated offers to pay 100 % of the amount borrowed by KFA to the Banks. Neither are Banks willing to take money and neither is the ED willing to release their attachments which they did at the behest of the Banks. I wish the FM would listen in this time of crisis.
— Vijay Mallya (@TheVijayMallya) March 31, 2020