Relief For Mallya As High Court In London Grants Him More Time To Repay Debts

London: In what must have come as a major relief for Vijay Mallya, the High Court in London deferred hearing on a plea by the State Bank of India-led consortium which has been seeking that the indebted liquor tycoon be declared bankrupt so that they can recover a loan amounting to around 1.145 billion British pounds from him.

Granting relief to Mallya, Justice Michael Briggs adjourned the bankruptcy petition by “at least six months”.

Slamming the petition by 12 state-owned Indian banks, Justice Brtiggs ruled that Mallya should be given time till his petitions to India’s Supreme Court and settlement proposal before the Karnataka High Court be determined.

Chief Insolvency and Company Court judge Briggs, in his verdict delivered on Thursday, said there is no obvious advantage to the banks to pursue this class of action at this point in time.

“This bankruptcy petition is by any measure extraordinary. The banks are pressing for a bankruptcy order at a time when there are extant proceedings in India,” read the judgment.

“In my judgment the banks are secured, at least in part… The hearing of the petition should be adjourned for the purpose of amendment and for time to pay the debts in full,” it noted.