Vijay Mallya, the Indian businessman wanted in India to face trial for fraud and money laundering, has discontinued his application to annul a UK bankruptcy order. This decision was made ahead of a scheduled hearing in London on Monday.
The move allows the "Trustee in Bankruptcy" to continue pursuing Mallya's assets. These assets will be used to repay a consortium of banks, led by the State Bank of India (SBI), an estimated £1.05 billion. This debt is owed by Mallya's now-defunct Kingfisher Airlines.
Mallya's legal team filed a notice of discontinuance last week, leading to the High Court hearing being vacated. TLT LLP, the UK law firm representing the banks, stated that the Trustee in Bankruptcy can now proceed without hindrance in investigating and realizing assets within Mallya's bankruptcy estate.
This development follows a ruling in April by High Court Judge Anthony Mann, which upheld the bankruptcy order that was issued over four years ago. Judge Mann stated that "the bottom line in relation to this is that the bankruptcy order stands".
Mallya had been pursuing a separate annulment application through his lawyers, Zaiwalla & Co., against the 2021 bankruptcy order. This application was based on the argument that the banks' debt had already been recovered in India. It is believed that this application was discontinued because an Indian writ petition, which would compel banks to provide information on their recoveries, has not progressed.
According to sources, the Indian proceedings are considered highly relevant to any annulment application in English courts. There are indications that a fresh bankruptcy annulment application could be made at a later date.
The case dates back to 2017 when the banks registered the Indian Debt Recovery Tribunal's (DRT) judgment in English courts. This judgment pertained to a personal guarantee Mallya had provided in relation to Kingfisher Airlines' debt.
Mallya remains on bail in the UK, separately fighting extradition to India to face fraud charges related to the collapse of Kingfisher Airlines.
