Fugitive Indian businessman Vijay Mallya’s attempt to delay his appeal against a bankruptcy order failed in the London High Court on Tuesday. His barrister argued that the banks pursuing him were acting in “bad faith” and withholding important information, but the court dismissed his plea for adjournment.
Court Rejects Adjournment Request
Mallya’s lawyer, Alastair Tomson, requested the court to postpone the hearing, claiming that a writ petition filed by Mallya in the Karnataka High Court on February 5 could soon produce new evidence. However, Judge Sir Anthony Mann rejected the request, expressing skepticism about how quickly the Indian court would reach a decision.
“Anecdotal evidence shows me that ‘soon’ in Indian courts is not necessarily soon. A lot of cases take a long time in India,” Judge Mann remarked.
The court also refused to consider late evidence submitted by Mallya, which included the Karnataka writ petition.
Mallya’s Arguments Against Bankruptcy
Mallya was declared bankrupt by a London insolvency court on July 26, 2021, for failing to repay a £1.05 billion (Rs 11,499 crore) judgment debt issued by the Debt Recovery Tribunal, Karnataka, in 2017. His legal team argues that the State Bank of India (SBI)-led consortium, which pursued the bankruptcy case, acted unfairly.
Tomson stated that the banks had already recovered more than the owed amount and accused them of misrepresenting financial recoveries. He claimed that the banks had concealed assets and continued charging interest unfairly, calling their actions “arbitrary, unlawful, and unconstitutional.”
Mallya Questions SBI’s Actions
In December 2024, Indian Finance Minister Nirmala Sitharaman informed Parliament that banks had recovered Rs 14,131.6 crore from Mallya. Following this statement, Mallya wrote to SBI’s chief manager on December 24, 2024, accusing the bank of deception. He criticized the banks for securing a worldwide freeze order on his assets while continuing to charge interest on the debt.
SBI has not responded to Mallya’s allegations.
Banks Oppose Mallya’s Claims
Tony Beswetherick KC, representing the banks, opposed Mallya’s plea for adjournment, arguing that there was no guarantee that the Karnataka High Court would provide the relief Mallya was seeking.
Mallya, 69, recently changed his legal representation and is now working with the law firm Zaiwalla & Co.
High Court to Hear Combined Appeals
The London High Court’s Chancery Division is currently handling three appeals in a single hearing. The banks are appealing a requirement to file an amended bankruptcy petition, while Mallya is appealing both the bankruptcy order and the amended petition.
