Vijay Mallya, the embattled businessman, is pushing for the annulment of his bankruptcy order in the UK, claiming that the bankruptcy proceedings pursued by Indian banks have taken on an “unreal quality.”
His legal team has been instructed to pursue an annulment application following statements made by Union Finance Minister Nirmala Sitharaman in Parliament.
The High Court in London has been hearing three interrelated appeals concerning Mallya’s bankruptcy order. Justice Anthony Mann reserved judgment after the conclusion of the hearings.
The case revolves around a consortium of banks, led by the State Bank of India, seeking repayment of approximately £1.05 billion owed by Mallya’s defunct Kingfisher Airlines.
Mallya’s new legal team, led by Leigh Crestohl of Zaiwalla and Co., emphasised that recent evidence shows the debt owed to the banks has not only been paid but that the banks have recovered more than what was originally due.
This was supported by Sitharaman’s statement in Parliament on December 17, 2024, in which she confirmed that Rs. 14,131.6 crore had been collected and returned to the banks.
Crestohl stressed that it must be presumed that public sector banks would accept the accuracy of the finance minister’s statement.
Following the announcement, Mallya instructed his new legal team to seek the annulment of the bankruptcy order, a move he intends to pursue regardless of the outcome of the ongoing appeals.
Crestohl noted that Mallya believes he is “entitled to relief” based on the Finance Minister’s statement, and he expressed that the banks and Enforcement Directorate (ED) should provide a legal justification for having claimed more than double the amount owed.
Meanwhile, Mallya remains wanted in India on charges of fraud and money laundering. In response to Sitharaman’s statement, Mallya took to social media on December 18, 2024, claiming that he is entitled to relief, adding that he will pursue this matter further.
The current appeals relate to a decision made by Chief Insolvency Judge Michael Briggs, regarding the bankruptcy proceedings initiated against Mallya by the banks six years ago.
In addition to the main appeal, two others challenge the amendment of the bankruptcy order and the order itself, made in July 2021.
Mallya’s lawyers, including Kartik Mittal and Mark Watson-Gandy, have represented him in these ongoing proceedings.
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The legal saga dates back to May 2018, when a worldwide freezing order was imposed against Mallya following a judgment by the Bengaluru Debt Recovery Tribunal.
Since then, there have been several hearings leading to the 2021 bankruptcy order, which has since been appealed.
Separately, Mallya remains on bail in the UK while a “confidential” legal matter—believed to be related to an asylum application—is resolved.
Mallya continues to deny wrongdoing, arguing that the banks have been pursuing the same debt across both Indian and UK jurisdictions.
