Ok’taka HC sends notices to banks on Mallya’s debt restoration claims

Justice R Devdas issued a discover to banks in response to the petition filed by Mallya on February 3, directing them to reply by February 13. The petition, as an interim reduction, additionally sought a keep on any additional asset gross sales by banks underneath the amended restoration certificates till readability is supplied on the complete settlement of the debt.

Senior advocate Sajan Poovayya, representing Mallya, contended that the money owed had already been recovered, but further restoration proceedings continued towards his shopper.

“Parallelly there was a debt restoration continuing, in {that a} sum of ₹6,200 crore was ordered to be paid by the first debtor Kingfisher (Airways) and the UBHL which was the guarantor,” Poovayya instructed the court docket, as reported by LiveLaw.

“That order additionally attained finality. Nonetheless, between 2017 and now, the ₹6,200 crore has been recovered a number of instances over. In line with an admitted assertion, as of in the present day, the restoration officer confirms that ₹10,200 crore has been recovered. Moreover, the official liquidator states that the banks have regained their dues, and even the (Union) finance minister knowledgeable Parliament that ₹14,000 crore has been recovered,” the lawyer added.

He clarified that the petition doesn’t dispute the reimbursement of loans, however argues that underneath the Corporations Act, as soon as the debt is absolutely repaid, the guarantor firm (UBHL) has no remaining legal responsibility and may search revival. This course of, nonetheless, requires a certification from the restoration officer confirming that the debt has been absolutely settled, which has not but been issued.

The plea urged the banks to offer a press release detailing the quantities recovered of their favour, together with details about the unique house owners of the belongings used to generate these recoveries, following the amended restoration certificates issued by the DRT on April 10, 2017.

Mallya, a former liquor baron, is at the moment within the UK and efforts by the Indian authorities to safe his extradition have resulted in a naught as he’s believed to have utilized for asylum in Britain. Mallya had fled to the UK in 2016 earlier than restoration proceedings towards him have been initiated by banks. He holds a British citizenship.

“…Except the ED (Enforcement Directorate) and Banks can legally justify how they’ve taken greater than two instances the debt, I’m entitled to reduction which I’ll pursue,” Mallya posted on X on December 18 final 12 months.