An association of Indian banks led by the State Bank of India is brought one step closer to recover their debt from Vijay Mallya. The Kingfisher airlines’ owner filed a petition in the London high court to relinquish its security over the bussinesman’s asset in India. Insolvencies and Companies Court’s (ICC) judge Michael Briggs gave his judgement in the favour of the banks. He declared that there is no public policy that would prevent a surrenderer of security rights. Vitual hearing was done and the next date is July 26. It will be the final argument about granting bankruptcy order.
Justice Briggs statement read,” I order that permission be given to amend the petition to read as follows: The petitioners having the right to enforce any security held are willing, in the event of a bankruptcy order being made, to give up any such security for the benefit of all the bankrupt’s creditors”.
Philip Marshall, Mallya’s barrister recommended the statements of retired Indian judges in the previous cases to restate the public interest under Indian Law.
The total debt comprises of a total amount and the compound interest at the rate of 11.5 per cent per annum from 25 June 2013. Mallya has made applications in India to waive off the compound interest charge.
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