Vijay Mallya's Bankruptcy Appeal Rejected by UK High Court, No Stay on Proceedings
London, February 20: Business tycoon Vijay Mallya faced a setback as his attempt to overturn a bankruptcy order imposed by the UK High Court three years ago was rejected. The Chancery Division of the London Appellate Court resumed hearings on Wednesday, with Justice Anthony Mann dismissing Mallya’s plea to stay the bankruptcy proceedings.
Mallya, who is wanted in India on fraud and money laundering charges, did not attend the hearing. He was represented by Kartik Mittal and Mark Watson-Gandy from Jaewala & Company. The appeal pertains to an estimated £1.05 billion in unpaid loans related to the now-defunct Kingfisher Airlines, claimed by a consortium of Indian banks led by the State Bank of India (SBI).
Justice Mann stated, "I see no good reason to stay the matter pending the outcome of Indian proceedings." He emphasized that considerable time had already been "wasted" on the appeal. Mallya's attempt to introduce new evidence was also dismissed as irrelevant, including a statement by Indian Finance Minister Nirmala Sitharaman in December 2024, mentioning that ₹14,131 crore had been recovered for public sector banks (PSBs) through the sale of Mallya's assets.
The current appeals relate to Judge Michael Briggs' decision in the Insolvency & Companies Court (ICC), which authorized bankruptcy proceedings against Mallya initiated by Indian banks almost six years ago.
The legal battle in the UK is a part of the broader effort by Indian authorities to extradite Mallya, who has been residing in the UK since fleeing India in 2016. Despite India's extradition request being approved by the UK government in 2020, Mallya's asylum application in the UK has delayed his return to India to face legal proceedings.
The decision by the London court is a significant blow to Mallya, further complicating his legal strategy in the UK. With this ruling, the Indian banks may be a step closer to recovering dues owed by Mallya, adding pressure on the embattled businessman to settle his debts or face enforced recovery actions.
