In a big relief decision to Liquor baron Vijay Mallya, the High Court in London has adjourned the hearing on a plea by the SBI-led consortium of Indian banks, seeking the fugitive tycoon to be declared bankrupt to enable them to recover a loan of around GBP 1.145 billion 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.
Briggs, in his verdict, said that 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.
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“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.
The SBI-led consortium of Indian banks had sought a bankruptcy order against Mallya as part of efforts to recoup around GBP 1.145 billion of unpaid loans from Mallya.