“Debt Has Been Recovered Multiple Times Over”: Vijay Mallya Tells Court

Liquor baron Vijay Mallya has submitted earlier than the Karnataka Excessive Court docket that the Rs 6,200 crore debt he owes to banks has been recovered “a number of occasions over,” and sought a press release of accounts detailing the quantities recovered from him, United Breweries Holdings Restricted (UBHL, now in liquidation), and different certificates debtors.

The Excessive Court docket on Wednesday issued a discover to banks in response to the petition filed by fugitive businessman.

Justice R Devdas directed the banks to reply by February 13.

Senior advocate Sajan Poovayya, representing Mallya, argued that the winding-up order in opposition to Kingfisher Airways and its holding firm, UBHL, had been upheld in any respect judicial ranges, together with the Supreme Court docket.

He contended the money owed had already been recovered, but extra restoration proceedings continued in opposition to Mallya.

Poovaiah knowledgeable the court docket {that a} debt restoration tribunal (DRT) had ordered Kingfisher Airways, as the first debtor, and UBHL, because the guarantor, to pay Rs 6,200 crore.

“That order attained finality. Nonetheless, between 2017 and now, the Rs 6,200 crore has been recovered a number of occasions over. Based on an admitted assertion, as of in the present day, the restoration officer confirms that Rs 10,200 crore has been recovered. Moreover, the official liquidator states that the banks have regained their dues, and even the Finance Minister knowledgeable Parliament that Rs 14,000 crore has been recovered,” he said.

He clarified that the petition doesn’t dispute the reimbursement of loans, however argues that below the Corporations Act, as soon as the debt is absolutely repaid, the guarantor firm (UBHL) has no remaining legal responsibility and may search revival.

Nonetheless, this course of requires a certification from the restoration officer confirming that the debt has been absolutely settled, which has not but been issued. In the meantime, recoveries proceed with out readability on whether or not the first debt has been fully paid.

The plea requests the banks to supply a press release detailing the quantities recovered of their favour, together with details about the unique homeowners of the belongings used to generate these recoveries, following the amended restoration certificates issued by the DRT on April 10, 2017.

Moreover, it seeks a document of any belongings belonging to Mallya, UBHL, or third events that stay with the banks however haven’t but been utilised for mortgage restoration.

As an interim aid, the petition additionally sought a keep on any additional asset gross sales by banks below the amended restoration certificates till readability is supplied on the total settlement of the debt.

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