In a major setback to fugitive businessman Vijay Mallya, the Court of Appeal in England, the country's second-highest court, has denied him permission to appeal against a high court judgment in favour of 13 Indian banks, saying his grounds for the plea “were totally without merit”. The former 'King of Good Times' had sought permission to appeal against the May 8 judgment of the London High Court which had paved way for the recovery of £999 million he owes to the banks. The judge had also dismissed his application to have the worldwide freeze order on his assets discharged.
The verdict had set a legal precedent, marking the first recorded case of a judgment of a Debt Recovery Tribunal (DRT) in India being registered by the HC. Mallya's counsel had argued that the DRT Bengaluru judgment was “not permitted to be enforced in England”, saying only verdicts from courts whose “civil jurisdiction is subject to no pecuniary limit, and those sealed with a seal showing off” could be registered in England. However, in its order dated July 24, Lord Justice Flaux of the Court of Appeal refused Mallya permission for appeal.
He gave the verdict on grounds for the same had “no real prospect of success”. Justice Flaux observed that “there is no requirement for an 'express statement on the judgment or the seal that the jurisdiction is subject to no pecuniary limit'.” He said his decision was final and could not be appealed. “There is ample material from which the judge was entitled to conclude that the risk of dissipation was made out.”
Paul Gair, who represents the Indian government and banks, said the new order was not only positive news for the banks, but also for “other foreign banks that bring claims against parties who have defaulted on loans and taken up residence in England and Wales or have assets within this jurisdiction.” He added, “This means that our clients can continue with enforcing the judgment without further challenge to the registration under English law. Our clients continue to consider all of the enforcement options available to us in order to recover the full amount owing to them, and will pursue these actions as and when appropriate.”
Meanwhile, Mallya approached India's Enforcement Directorate and presented his “willingness to return” the money. The sudden change of heart comes after the ED confiscated his assets in India and abroad under the Fugitive Economic Offenders Ordinance.
