Vijay Mallaya loses bankruptcy petition amendment case to consortium of Indian banks in London court: Report

Chief Insolvencies and Companies Court (ICC) Judge Michael Briggs gave the judgment in banks' favour, declaring that no public policy exists that stops a waiver of security rights, as contended by Mallya’s lawyers, said a Mint report.

The hearing took place via video conferencing.

The judge set July 26 as the date for final arguments for and against issuing a bankruptcy order against Mallya following allegations by banks that Mallaya was trying to “kick matters into the long grass" and called on the “bankruptcy petition to be brought to its inevitable end", according to the report.

“I order that permission be given to amend the petition to read as follows: ‘The Petitioners (banks) 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’," Justice Briggs’ judgment read, the report said.

“There is nothing in the statutory provisions that prevent the Petitioners from giving up security," he noted, stated the report.

“In my judgment the simple stance taken by Justice Gowda that Section 47 PIA 1920 is evidence of the ability of a secured creditor to relinquish the creditor’s security is to be preferred," the ruling noted in connection with the

The Indian banks, represented by the law firm TLT LLP and barrister Marcia Shekerdemian.

“Dr Mallya should have been extradited by now. He was refused permission to go to the Supreme Court in May last year," Shekerdemian underscored in reference to one of Mallya’s arguments that the corruption cases against him are “politically motivated", added the report.