Sreya Kanugula
A vital application regarding a sanction for the immediate release of significant funds held within the office of court funds, that is the CFO, which has a hand in the bankruptcy operations held against Mr. Vijay Mallya, the famous liquor businessman was heard by a court in the UK.
It was refused and the judge who chaired the hearing at the ICC (Insolvency and Companies Court) stated at the end that Mr. Mallya has failed in providing any of the required information which would allow for the validity of such an order.
Judge Sebastian Prentis only signed off on a sufficient amount of funds rather than the inflated amount which was requested to cover the fees for the scheduled court hearing on January 13. The court hearing that Mr. Mallya requested funds for is about a case of bankruptcy filed against him by a consortium of banks from India with the State Bank of India (SBI) leading the charge.
The judge also noted his confusion as to this application’s urgency since the updated evidence on the complete asset disclosure in the case of Mr. Mallya clearly shows high-end jewellery along with several luxury cars listed under his ownership. This issue of funds being withheld will be dealt with completely at a High Court hearing on the 22nd of January, where the court’s decision will be made on whether the sums sanctioned under the categories of legal payments as well as expenses for a living will ever be released to Mr Mallya. These sums are the product of selling a luxurious French property named Le Grand Jardin by him in the previous year.
The former Airlines owner seeks the approval necessary to make use of around 2.8 million pounds out of the 2.9 million estimates, that lie currently within the court’s possession. The enormous amount is under the court’s hand due to the Insolvency Act of 1986 of the UK. Advocate Marshall, Mr. Mallya’s representative argued on his behalf for urgent access to be granted to these funds in order to foil any risk to his legal assistance eventually being lost.
Advocate Tony Beswetherick, the barrister representing the consortium of Indian banks, argued that the application must be contested on dissipating any assets held in regards to the debt Mr. Mallya owes to the banks. He also clarified that there is a scheduled hearing upon the same matter later on the 22nd of January.
For now, a hearing for the appeal made will bring out the case on January 13. On the same day, Mr. Mallya’s representation plans to seek the dismissal of the petition order filed on bankruptcy charges.
On January 11, the court once again listened to how the income from two of the consultancy agreements under Mr. Mallya is no longer making any headway, and thus, he has resorted to the monetary funds paid to him on the sale of the Le Grand Jardin. The same amount held by the court until the bankruptcy hearing heads to a conclusion. The proceedings initiated by the Indian banks’ consortium began in the month of December in 2018. The consortium consists of 13 banks headed by the SBI.
Several hearings have been heard upon this case to make an effort to retrieve the money since 1.145 billion £ (around 9,000 crores INR) is owed to the banks in the form of unpaid loans.
For now, Mallya stays free after bail posting since the home office of the UK is dealing with an on-going, legal issue that is confidential in nature. That is until the Home Secretary of the UK, Priti Patel is allowed to sign the extradition order that the Indian government seeks on the 65-year-old, currently-defunct businessman.
There were separate proceedings held on his extradition that consisted of various legal procedure levels in the courts of the UK, which finally concluded that he’s answerable to a case presented in front of the Indian courts.
