 "Will Mallya chair USL AGM?")
Seventeen banks led by State Bank of India on Tuesday moved the Supreme Court seeking to freeze the passport of Vijay Mallya, who is embroiled in a debt crisis related to the sale of shares of Kingfisher Airlines and United Breweries.
Attorney General Mukul Rohtagi sought urgent hearing of the appeal against the Karnataka high court order, which had not put restraint on his leaving the country in its order on Friday. Chief Justice T S Thakur agreed to list the petition of the banks on Wednesday.
According to the banks, the high court order had failed to protect their interest. They are yet to recover an amount in excess of Rs 9,000 crore from him, the airline and brewery companies. Diageo plc of London and Diageo Holding Netherlands BV, who bought breweries from Mallya, also have been made respondents in the case. Impounding of passport is very urgent in view of that if Mallya leaves the country and settles in London before claims are considered, the purpose of the litigation would be defeated, the petition said. If $ 75 million or any part of it is paid to him by Diageo, in a deal as the company agreed to pay Mallya, creditors would be put to hardship.
Mallya has been declared as a wilful defaulter and the huge debt of Rs 9,091 crore to the banks would adversely impact the economy of the country, the banks have said, claiming their first right to the cash Diageo agreed to pay him. The banks pleaded that even if the passport was not impounded, he should not be allowed to leave the jurisdiction of the Supreme Court without its permission till the disposal of the appeal. It is also prayed that a warrant of arrest be issued against Mallya, directing him to furnish suitable security for his appearance before the debt recovery tribunal (DRT).
It is argued that the DRT had failed to exercise its power to issue an arrest warrant against him, impound his passport or demand security as provided in the debts due to Banks and Financial Institutions Act. It had also not asked Mallya to disclose the details of his assets. Despite 75 hearings, the DRT has not decided the case of the banks. Mallya is accused of unnecessarily prolonging the case and the banks fear tha the might continue to do this to frustrate the banks’ petitions. Mallya had earlier said that he wanted to move to England to be closer to his children.
