UK court rules against Mallya on bankruptcy

AT A VIRTUAL HEARING, JULY 26 WAS SET AS THE DATE FOR FINAL ARGUMENTS

LONDON: A consortium of Indian banks led by the State Bank of India (SBI) on Tuesday moved a step closer in their attempt to recover debt from loans paid out to Vijay Mallya’s now-defunct Kingfisher Airlines after the London High Court upheld an application to amend their bankruptcy petition, in favour of waiving their security over the embattled businessman’s assets in India.

Chief insolvencies and companies court judge Michael Briggs handed down his judgment in favour of the banks to declare there is no public policy that prevents a waiver of security rights, as argued by Mallya’s lawyers.

At a virtual hearing, July 26 was set as the date for final arguments for and against granting a bankruptcy order against the Mallya after the banks accused him of trying to “kick matters into the long grass” and called on the “bankruptcy petition to be brought to its inevitable end”.