Lawstreet Journal

'Not Case Where Company Needs to be Wound Up as Assets Exceed Outstanding Liability', SC in Vijay Mallya case

Lawstreet Journal 1 Oct 2020 9:37pm

Image courtesy: Lawstreet Journal Judiciary 'Not Case Where Company Needs to be Wound Up as Assets Exceed Outstanding Liability', SC in Vijay Mallya case

Vijay Mallya, the owner of Kingfisher Airlines has been declared a fugitive for several years on the charge of being a defaulter for not paying his loans taken from several banks. The total estimated loan taken by him from IDBI and SBI as well was estimated at 14000cr rupees. With the ongoing investigation, his assets and properties were seized by the ED to date. 

The bench of Justices U.U. Lalit, Vineet Saran, and Ravindra Bhat of the Hon’ble Supreme Court deferred the challenge of Mallya’s United Breweries Ltd. Company to be wound up on the order of the Karnataka High Court to October 8 as the bench needs to examine the facts whether the attached asset of the fugitive can be used to settle the debts to the bank or not.

Senior Advocate of Vijaya Mallya, C.S. Baidyanathan has argued to the court that as the assets of the company have exceeded the total outstanding liability and debts, it should be inappropriate to direct the company to be wound up. He further added to his arguments that the assets are attached to the ED as it has seized it during the investigation and is not entitled to be used for the settlement of debts of the banks. 

On replying to the question asked by Justice Lalit, Advocate Baidyanathan explained that an appeal has been made to the Prevention of Money Laundering Act (PMLA) tribunal suggesting that an attachment was made for paying off the debts and liabilities yet the challenge to the attachment… Continue Reading...


Tagged: Vijay Mallya  
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