By admin 
London:
Embattled businessman Vijay Mallya is seeking to annul his UK bankruptcy order, arguing that the case against him has taken on an “unreal quality” following recent statements by India’s Finance Minister, Nirmala Sitharaman. Mallya has instructed his new legal team to file an annulment application, maintaining that Indian banks have already recovered more than the amount he owed.
The development emerged as Justice Anthony Mann reserved judgment on three interlinked appeals related to Mallya’s bankruptcy order, following hearings at the High Court in London this week. A ruling will be delivered at a later date.
Legal Battle Over Debt Repayment
The case revolves around a consortium of Indian banks, led by the State Bank of India (SBI), seeking repayment of approximately £1.05 billion from Mallya, which stems from debts incurred by his now-defunct Kingfisher Airlines.
Mallya’s new legal representatives, Zaiwalla & Co., argue that the banks’ claims are no longer valid because they have already recovered more than they were owed. His lawyer, Leigh Crestohl, cited Sitharaman’s statement in the Indian Parliament on December 17, 2024, confirming that banks had recovered ₹14,131.6 crore (approximately £1.35 billion).
Mallya’s Argument for Annulment
According to Crestohl, the public sector banks should accept the finance minister’s statement as factual. Based on this, Mallya has applied to annul the bankruptcy order, regardless of the outcome of the appeals currently before the court.
Mallya, who remains wanted in India on fraud and money laundering charges, reiterated his stance on social media a day after Sitharaman’s statement. In a post on X (formerly Twitter) on December 18, 2024, he stated:
“Unless the Enforcement Directorate (ED) and banks can legally justify how they have taken more than twice the debt amount, I am entitled to relief, which I will pursue.”
Ongoing Court Appeals
Justice Mann’s hearings this week focused on three appeals:
- Security Appeal: Challenges a previous ruling that the banks were prevented from denying they held security over certain Mallya assets due to an Indian court judgment.
- Amendment Appeal: Disputes changes made to the bankruptcy order.
- Bankruptcy Order Appeal: Seeks to overturn the July 2021 bankruptcy ruling.
Mallya’s lawyers, Kartik Mittal and Mark Watson-Gandy, presented arguments against the banks’ representatives, TLT LLP and barrister Tony Beswetherick.
A Long-Running Legal Battle
Mallya’s legal troubles date back to May 2018, when Indian banks secured a worldwide freezing order (WFO) against his assets, based on a judgment by the Bangalore Debt Recovery Tribunal (DRT). The bankruptcy order was formally issued in July 2021, and appeals have been ongoing ever since.
Meanwhile, on the extradition front, Mallya remains on bail in the UK, while a confidential legal matter, believed to be linked to an asylum application, continues. He has long denied any wrongdoing and claims that Indian banks have pursued the same debt both in India and the UK.
With Justice Mann reserving his ruling, Mallya’s legal battle over the bankruptcy order is set to continue in the coming months.
Gill Bikram Singh