Vijay Mallya

The order followed the May 8 judgment of the commercial court of the Queen’s Bench Division, which dismissed Mallya’s application to set aside a ruling of the Karnataka Debt Recovery Tribunal and an associated worldwide freezing order.

“The appeal by the Indian banks in 2017 in the UK high court was to ensure that Mallya was not removing or selling his foreign assets as India fights for his extradition. What is the point of this legal battle if the banks are una- ble to recover their dues?”said an official in one of India’s investigating agencies probing Mallya and acting on his extradition.

The verdict by the UK high court will not have any impact on proceedings against Mallya’s assets in India, officials said.

The consortium of Indian banks, led by State Bank of India, is seeking to recover £1.145 billion debt from Mallya. The earlier ruling was the first instance of upholding an Indian tribunal’s ruling registered in the English high court, when it was recorded in November 2017.

The case is part of litigation in which the banks are seeking to recover sums lent to Kingfisher Airlines Limited, which Mallya guaranteed.

The May j udgement is expected to enable the banks to enforce the Indian ruling against Mallya’s assets in England and Wales, but the banks’ solicitors said the June 26 order does not have the effect of triggering any enforcement.

The consortium includes 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.

Mallya, who on June 26 issued a media statement reiterating his offer to settle with the banks, is facing a separate extradition case on charges of cheating and money laundering in the Westminster Magistrates Court, where a final hearing is scheduled for July 31.