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Fugitive businessman Vijay Mallya declared bankrupt by the British High Court, Indian banks won the case

India’s fugitive businessman Vijay Mallya has got a big setback from the UK High Court. A UK court has issued an order to declare fugitive Indian businessman Vijay Mallya bankrupt. The court’s order paves the way for a consortium of Indian banks led by State Bank of India to initiate confiscation of assets of the defunct airline Kingfisher globally to recover its outstanding debt.

Chief Insolvency and Company Affairs (ICC) Judge Michael Briggs of the Chancery Division of the High Court of London said in his decision during the online hearing of the case, “I declare Mallya insolvent.”

Law firm TLT LLP, advocating Indian banks, and barrister Marcia Shekerdamian argued for issuing bankruptcy orders in favor of Indian banks. The 65-year-old businessman is currently out on bail in the UK. It is understood that he may remain on bail till the resolution of confidential legal proceedings on the issue of asylum in the country in a separate case related to the extradition process.

Mallya’s counsel Philip Marshall urged for an adjournment as well as a stay of the order in the matter. However, the court rejected their request, saying there was insufficient evidence to show that the full loan would be returned to the petitioners in due course. He also put forward an application seeking permission to appeal against the bankruptcy order, which Judge Briggs rejected because the appeal had no real prospect of success.