Along with Mallya and Kingfisher, the proposal was also submitted by United Breweries (Holdings) Ltd and Kingfisher Finvest (India) Ltd.
A bench comprising Justices Kurian Joseph and R F Nariman allowed the consortium of banks a week's time to respond to the proposal and posted the matter for further hearing on April 7.
At the outset, senior advocate C S Vaidyanathan, appearing for Kingfisher and Mallya, submitted that they have given a proposal to the consortium of banks as to what can be done under the given circumstances.
The senior advocate appearing for the consortium of banks said he would like to go through the proposal and then respond.
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He said the proposal has been prepared after having discussions with the parties through video conferencing.
On March 9, the government had informed the apex court that Mallya, who is facing legal proceedings for allegedly defaulting loans of over Rs 9,000 crores from various banks, has left the country a few days back.
The bench had allowed the plea of Attorney General that the notice to him can be served through his official Rajya Sabha email ID, the Indian High Commission at London, through counsel representing him before various high courts, Debt Recovery Tribunal and also through his company.
Attorney General Mukul Rohatgi had said there was a need
for a garnishee order (to attach money or property), as also for disclosure on behalf of Mallya.
The AG had said that Mallya had assets abroad which are far excessive to loans secured by him here.
When the bench had asked how banks granted loan to Mallya under such circumstances, the AG had said loans were granted keeping in mind that Kingfisher Airlines had a fleet of aircraft as well as brand value. Loans were given also as the aircraft were attached to third parties.
The consortium of banks, in their appeal, assailed the March 4 order of Karnataka High Court refusing an 'ex-parte ad interim' order against Mallya, England-based Diageo Plc and United Spirits Limited.
Prior to moving the High Court, the banks had filed four pleas in Debt Recovery Tribunal (DRT) at Bengaluru seeking reliefs like freezing of Mallya's passport, arrest warrant against him and issuance of a "garnishee order against Diageo Plc and United Spirits Ltd from disbursing USD 75 million".
The banks had moved the DRT in the backdrop of Mallya's recent resignation from the chairmanship of United Spirits.
Diageo Plc, the current owner of the liquor company, has agreed to pay USD 75 million (approx. Rs 515 crore) to Mallya as severance package.
The banks have also sought a direction to Mallya to "furnish suitable security for his appearance before the DRT" during the pendency of banks' original applications for recovering debts.
The banks had also arraigned firms like Kingfisher Airlines Ltd, United Breweries (Holdings) Ltd, Kingfisher Finvest (India) Ltd, SBICAP Trustee Company Ltd as parties.