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Vijay Mallya, chairman of the UB group, on Monday filed a suit in the high court here, seeking correction of some numbers and typos in the company’s copy of a December 20 judgement that annulled Diageo’s purchase of shares in group company United Spirits.
This gives the company time to decide on its appeal against the order, with one of the judges hearing the case transferred to a circuit bench for six weeks. The company is mulling appealing in the Supreme Court against the order.
In the order, the bench of judges N Kumar and Rathnakala ruled that two deposits of Rs 379.75 crore and Rs 14.37 crore in a private bank should be transferred to the registrar general of the high court in a week from the receipt of the order. The counsel for UB Holdings, the group’s principal holding company, said there was only one deposit of Rs 379.75 crore with a Lakshmi Vilas Bank branch in the state, a source said.
A UB Group spokesperson did not offer any update on the matter after business hours on Monday.
The high court bench had overturned an order of a company court that allowed UB Holdings to sell part of its stake in United Spirits to the British alcoholic beverages giant (Mallya’s liqour arm is in dire need of cash, with lendors filing petitions to wind up the company to recover dues). Creditors to the company had appealed against the approval saying the company was not entitled to enter into a such a big transaction without their advice or approval.
The company court has asked UB Holdings to deposit Rs 250 crore with the registrar general in escrow for the five wind-up suits filed against the group by Avions de Transport Régional, Intl Aero Engines, Rolls-Royce & Partners and RRPF Engine Leasing.
Of the Rs 1,460 crores received from the sale of about 10 million shares to Diageo, UB Holdings said it will pay Rs 820 crore to creditors and had kept RS 379.75 crore in a fixed deposit in Lakshmi Vilas Bank. THe company has explained the remaining amount as the Rs 250 crore deposit in Court and about RS 10.5 crore in legal expenses. “There is no Rs 14.37 crore deposit and an application has been filed to that effect. It may be a typographical error but must be corrected before the matter goes to the Supreme Court,” the person said.
Diageo and Mallya have both confirmed that they will appeal against the High Court’s verdict in the Supreme Court.
