A British high court has granted a bankruptcy order against beleaguered businessman Vijay Mallya, allowing a consortium of Indian banks led by the State Bank of India (SBI) to pursue a worldwide freezing order for repayment of owed debt. Chief Insolvencies and Companies Court (ICC) Judge Michael Briggs, said in his ruling during a virtual hearing of the Chancery Division of the High Court, “As at 15.42, I adjudicate Dr Mallya bankrupt.”
Barrister Marcia Shekerdemian, of the law firm TLT LLP, representing the Indian banks, argued for the bankruptcy order to be granted. Mallya, meanwhile, remains on bail in the UK while a “confidential” legal matter is resolved in connection with the unrelated extradition proceedings. His barrister Philip Marshall sought a stay as well as an adjournment of the order while legal challenges remain ongoing in the Indian courts. The requests, however, were turned down by the judge who concluded that there was “insufficient evidence” the debt will be paid back to petitioners in full within a reasonable period of time.
Marshall also submitted an application seeking permission to appeal against the bankruptcy order, which was refused by Judge Briggs. Mallya's legal team contends the debt remains disputed and that the ongoing proceedings in India inhibited a bankruptcy order being made in the UK.
