A Chancery Division of the High Court in London on Monday, 26 July, declared businessman Vijay Mallya as bankrupt.
Chief Insolvencies and Companies Court (ICC) Judge Michael Briggs ruled, "As at 15:42 (UK time), I adjudicate Dr Mallya bankrupt," news agency PTI reported.
This ruling paves the way for a consortium of Indian banks, headed by the State Bank of India (SBI) to begin recovering the debt owed by the now-defunct Kingfisher Airlines.
Represented by the law firm TLT LLP and barrister Marcia Shekerdemian, the association of India banks had sought for the bankruptcy order against the former businessman.
The 65-year-old businessman is on bail in the UK. Meanwhile, a 'confidential' legal matter, believed to be related to an asylum application, is resolved in connection with the unrelated extradition proceedings.
The judge turned down requests by Mallya's barrister, Philip Marshall, who sought a stay as well as an adjournment of the order while legal challenges remain ongoing in the Indian courts, PTI reported.
The judge who concluded that there was 'insufficient evidence' that the debt will be paid back to the petitioners in full within a reasonable period of time.
The SBI-led consortium of 13 Indian banks had been pursuing a bankruptcy order in the UK in relation to a judgment debt which stands at over GBP 1 billion.
The consortium includes Bank of Baroda, Corporation Bank, Federal Bank Ltd, IDBI Bank, Indian Overseas Bank, Jammu & Kashmir Bank, Punjab & Sind Bank, Punjab National Bank, State Bank of Mysore, UCO Bank, United Bank of India and JM Financial Asset Reconstruction Co. Pvt Ltd as well as an additional creditor.
Contending that the debt remains disputed, Mallya’s legal team added that the ongoing proceedings in India inhibited a bankruptcy order being made in the UK.
Foreign Secretary Harsh Vardhan Shringla had earlier said India has received the 'best assurance' from the UK government regarding businessman's extradition.
(With inputs from PTI)
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