Mallya Can't Use Pendency To Stall UK Insolvency Case: SC

The Supreme Court has stated that fugitive willful defaulter Vijay Mallya cannot use the pendency of his petition before it, offering to pay off his dues, in order to stall insolvency proceedings initiated by the State Bank of India (SBI) against him in a court in the United Kingdom.

A bench headed by Chief Justice of India S A Bobde passed the order after the central government’s lawyer told the Supreme Court that Mallya used pendency of his plea before it to stall the UK court from delivering a verdict in insolvency proceedings.

Solicitor General Tushar Mehta appearing for the central government contended before a Supreme Court bench comprising Chief Justice S A Bobde, Justice B R Gavai and Justice Surya Kant that Mallya has been using pendency of the matter before the Supreme Court to avoid judgment in insolvency proceedings before a London court. Mallya had stated that his proposal to pay back the money was pending.

Mehta told the Supreme Court that since 2013, Mallya has been hanging a carrot before the SBI led lenders’ consortium.

The SBI had filed for insolvency in a UK court. However, Mallya urged the UK court to hold back its verdict since his settlement proposal is pending before the Supreme Court in India.

The Supreme Court has clarified that pendency in the Supreme Court cannot become a ground for holding up any case anywhere in the world.

Mallya had approached the Supreme Court on June 27 seeking a stay on the confiscation of properties owned by him and his relatives.

Mallya, who is currently in the UK, has been charged by the Enforcement Directorate (ED) with defaulting on bank loans to the tune of Rs 9,000 crore. He also faces an extradition trial in the UK.