Karnataka High Court Rejects Vijay Mallya's Review Petition Challenging Order Which Directed Deposit Of Rs 3101 Crore

The Karnataka High Court rejected a recent review petition filed by willful defaulter and fugitive economic offender Vijay Mallya.

Mallya’s petition had challenged a co-ordinate bench order which in turn had upheld an order by the Debt Recovery Appellate Tribunal (DRAT) which had asked Mallya to deposit a sum of Rs 3101 crore, as a precondition to hear his appeal against a Debt Recovery Tribunal (DRT) order.

On January 19, 2018, the DRT had ordered attachment of shares worth an estimated Rs 385.9 million in United Breweries, which is a company Mallya used to control.

On March 28, the Debt Recovery Appellate Tribunal (DRAT) passed an interim order, directing Mallya to deposit Rs 3,101 crore as a precondition to consider his application against the DRT order.

The DRAT order was challenged in the High court, which rejected it.

In the review petition, Mallya’s lawyer argued that certain “significant events” which took place between 18.09.2018 and 05.10.2018 having a crucial bearing on the matter could not be placed on record before the passing of the order in review.

He argued that if these events were placed on record, the outcome of the writ petitions would have been favorable to the petitioner.

Mallya’s lawyer argued that the order in review did not refer to fact that United Breweries (Holdings) Ltd (UBHL) had made a bonafide offer of Rs.13,960.31 crore as on for final settlement, and this non-reference, constituted an error on the face of the record.

However, the Karnataka High Court stated that since the order by a co-ordinate bench on the plea made by UBHL, nearly a year has lapsed and not even a rupee has been repaid out of Rs 13,960.31 crore which was offered as settlement.

The bench stated that there is nothing significant in Mallya’s contention that would warrant exercise of a review jurisdiction in his favor and added that his petitions are devoid of merit.