London: A UK court hearing an urgent application on Monday refused to sanction the release of substantial sums held with the Court Funds Office (CFO) as part of bankruptcy proceedings being pursued against liquor tycoon Vijay Mallya by a consortium of Indian banks, led by the State Bank of India (SBI).
Judge Sebastian Prentis, who presided over a remote hearing at the Insolvency and Companies Court (ICC) of the High Court in London, concluded that Mallya had failed to provide the “basic information” required for such a validation order and agreed only to allow sufficient funds to cover an appeal hearing scheduled in the bankruptcy case for Wednesday.
“As to the urgency of this application, I remain puzzled,” the judge noted, as he raised questions about updated evidence on full disclosure of assets at Mallya’s disposal, including jewellery and a “fine suite” of high-value luxury cars that were listed as being owned by him.
The issue of funds held by the court will now be fully dealt with at a hearing listed before the High Court on January 22, during which the court will decide whether to sanction sums towards living expenses and legal fees from the sale of a French luxury property Le Grand Jardin last year.
The 65-year-old former Kingfisher Airlines chief seeks approval to use 2.8 million pounds of the estimated 2.9 million pounds held by the court under the UK’s Insolvency Act 1986.
Vijay Mallya’s counsel, Philip Marshall, argued that his client needed urgent access to funds to avert a “high risk” of him losing his legal representation.
Barrister Tony Beswetherick, arguing on behalf of the Indian banks, contested the application on the grounds of the risk of dissipation of assets held towards the debt owed to the banks. He also pointed to a hearing in the matter already being scheduled for later this month on January 22. (AGENCY)
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