UK court declares Mallya bankrupt
Press Trust of India
A British court on Monday granted a bankruptcy order against Vijay Mallya, paving the way for a consortium of Indian banks led by the State Bank of India to pursue a worldwide freezing order to seek repayment of debt owed by the now-defunct Kingfisher Airlines.
“As at 15.42 [UK time], I adjudicate Dr Mallya bankrupt,” Chief Insolvencies and Companies Court Judge Michael Briggs said during a virtual hearing of the Chancery Division of the high court.
The Indian banks, represented by the law firm TLT LLP and barrister Marcia Shekerdemian, argued for the bankruptcy order to be granted in favour of the banks.
The 65-year-old businessman, meanwhile, remains on bail in the UK while a “confidential” legal matter, believed to be related to an asylum application, is resolved in connection with the unrelated extradition proceedings. His barrister, Philip Marshall, sought a stay and an adjournment of the order while legal challenges remain ongoing in the Indian courts. However, the requests were turned down who concluded that there was “insufficient evidence” that the debt will be paid
LONDON:
back to the petitioners in full within a reasonable period of time. He also put forward a plea seeking permission to appeal against the order, which Judge Briggs refused as there was no “real prospect of success” of an appeal.
Once a bankruptcy order is made in the UK, there is an automatic vesting of all of the bankrupt’s assets in a Trustee in Bankruptcy, whose role is to investigate their affairs and establish their true assets and liabilities, with a view to selling relevant assets and paying back the bankrupt’s creditors.a bankrupt person must cooperate with the Trustee in Bankruptcy. Such a person is prohibited from obtaining credit for more than GBP 500 without disclosing their bankrupt status, or acting as the director of a company without the court’s permission. He is also automatically discharged from bankruptcy after one year unless an order is made suspending this discharge.