Karna HC dismisses UBHL's appeal against winding up plea

Karnataka High Court today dismissed an appeal filed by Vijay Mallya-led United Breweries Holdings Limited against the winding up petition by corporate banker BNP Paribas for "lack of merits."
The order rejecting UBHL's plea was passed by a Division Bench comprising Justice N Kumar and Justice Ratnakala.
The UBHL had filed the appeal against last month's order of Justice Anand Byrareddy admitting BNP Paribas winding up petition on defaults by now grounded Kingfisher Airlines, promoted by UBHL, over unpaid dues of over Rs 200 crore.
Counsel for UBHL contended that the admission order was erroneous as far as solvency of the company was concerned. It maintained that UBHL was commercially solvent and profitable.

Certain companies, including BNP Paribas, which are creditors to UBHL, had filed petitions in the High Court seeking its winding up as the holding company was unable to pay its debts. The creditors are trying to get back close to Rs 600 crore.