"Move On" And End Such Commercial Disputes: Bombay High Court In Vijay Mallya's 2020 Plea Against SBI Over Asset Seizure

The Bombay High Court while issuing notice to the Enforcement Directorate (ED) on Wednesday (August 12) orally opined that the commercial disputes pending between former liquor baron Vijay Mallya and the consortium of banks must be put to an end, and that the parties involved must 'move on' as otherwise it will affect the country's economy. Single-judge Justice Milind Jadhav was hearing an application filed by Mallya way back in 2020, wherein he had challenged a special Mumbai court order permitting the consortium of banks led by the State Bank of India (SBI) to utilise some of the assets belonging to the businessman, which were then seized by the ED.This very petition was listed for the first time today as Justice Jadhav recorded in the order, "This Application has seen the light of the day today for the first time..." while issuing a notice to the ED's Deputy Director and further directing him to furnish the present status of the investigations against Mallya and also the details of the attachments made so far. At the outset, when the matter was called out, senior advocate Amit Desai for Mallya told the judge that 'much water has flown down' as the instant application filed then in 2020 was to protect some of his client's assets. However, he pointed out that around Rs 15,000 crore worth assets have been attached by the ED, a statement to which effect was made by the Finance Minister in the Parliament. "No statement is being made now in fact nobody is showing courage to make a statement about what has been seized and attached and what remains to be pending... This, despite the data being available in public domain...All civil liabilities are over .. in fact public sector banks are keeping this pending is unfortunate... Despite Finance Minister making a statement in the Parliament," Desai submitted. To this, Justice Jadhav orally responded, "Then the Indian Govt must file an affidavit stating that everything is done and dusted... as a closure is required, at least for such commercial litigation."Accordingly, the bench issued notice to the ED, recording in the order, "After hearing Mr Desai and considering his submissions that substantial developments have taken place pursuant to the filing of this application and statement made in the Parliament with respect to the recoveries of debt of the companies of the applicant. It is appropriate at this juncture to issue notice only to R13 - Deputy Director of ED in order to apprise the court of further development in the prosecution's case. Pursuant to hearing ED Deputy Director this court will decide further course of action."Placing the matter for further hearing after four weeks, Justice Jadhav expressed that in his opinion such commercial disputes between the banks and Mallya must be brought to an end now, given the fact that almost a decade has passed. "Actually this (Commercial Dispute between Mallya and Banks) issue needs to be put an end...The relations of both the countries get affected... Commercial disputes give answers in the dispute itself...The idea is to move on otherwise the economics of the country gets suffered..." Justice Jadhav orally observed. To this, Desai responded citing an RBI audit, which he said, concludes that the entire dispute is nothing but a complete airlines business failure. "They (Banks) have taken away Rs 15,000 crore but yet they say sorry that's not good enough..." Desai remarked. The bench said it will consider the matter further after four weeks. Case Title: Vijay Vitthal Mallya vs State Bank of India (APL/148/2020)

"Move On" And End Such Commercial Disputes: Bombay High Court In Vijay Mallya's 2020 Plea Against SBI Over Asset Seizure

Narsi Benwal

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Narsi Benwal

"Move On" And End Such Commercial Disputes: Bombay High Court In Vijay Mallya's 2020 Plea Against SBI Over Asset Seizure

Narsi Benwal

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Narsi Benwal

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