British law firm TLT has acted for 13 Indian banks in successfully defeating two applications filed by business mogul Vijay Mallya. The first application was to set aside the first recorded case of a judgment of the Debt Recovery Tribunal in India being registered by the English High Court, while the second was to discharge an associated worldwide freezing order. The registration will allow banks to enforce the Indian judgement, now worth over £1.145 billion, against his assets in England and Wales. Worldwide freezing order prevents him from removing any assets from England and the Wales, up to that value, or to in any way dispose, deal, or diminish the value of his assets in or outside the jurisdiction, up to the same value.
The case was led by Paul Gair, partner in TLT's banking and financial services litigation team, along with legal director Nick Curling, solicitor Jack Hargreaves, and trainee Adam Cooke. Gair said the “judgement is a very important decision not just for our clients, who want to proceed in this jurisdiction with enforcing the judgement they secured against Dr Mallya in India, but also for Indian and international banks more generally.” He continued, “In dismissing Dr Mallya's application, the High Court has demonstrated its willingness to recognise judgments granted by courts in other jurisdictions, giving parties opportunities to enforce their judgments against any assets held here. This case also sets a strong precedent for parties to secure a worldwide freezing order when enforcing judgments against wilful defaulters.”
“In a weakened global economy, non-performing loans present a real challenge for lenders, particularly where customers have assets located around the world. The English courts can play a vital role in these cases given that London is the world's leading financial centre.”
Mallya is separately contesting proceedings to extradite him to India where he faces criminal charges relating to money laundering. The court has also considered a number of arguments relating to the granting of a worldwide freezing injunction that will affect other cases, including the timing of when such an application can be made. A consortium of 13 banks led by State Bank of India, and included Bank of Baroda, Corporation Bank, the Federal Bank Limited, IDBI Bank Limited, Indian Overseas Bank, Jammu & Kashmir Bank Limited, Punjab & Sind Bank, Punjab National Bank, State Bank of Mysore, UCO Bank, United Bank of India, and JM Financial Asset Reconstruction Co. Pvt Ltd. Is currently entangled in a legal battle with Mallya for debt defunct.
