Vijay Mallya's Plea Seeking Information On Kingfisher's Outstanding Debt Prima Facie Not Maintainable: Karnataka High Court

The Karnataka High Court on Tuesday orally remarked that the petition filed by fugitive liquor baron Vijay Mallya, seeking information on outstanding debt owed by him and his erstwhile airline Kingfisher (United Breweries Holdings Limited), is not maintainable.Justice Lalitha Kanneganti observed that Mallya should have instead moved a company petition before the Company Court. The bench said,“How is this maintainable before this court? Why should this court entertain all this? The company petitions are there if you are interested to implead yourself and get all these details...on the face of it the prayer is not maintainable.”Mallya sought a statement of accounts, after adjusting all the recoveries made from him from time to time. He claims that after winding up of Kingfisher Airline, a sum of ₹6,200 crore was ordered to be paid. However, ₹14,000 crore have been recovered from him by the banks.Senior Advocate Vikram Huilgol appearing for the banks on the other hand argued that liquidation proceedings are going on before the Company Court and Mallya may make an application there. “This writ petition reads more in the nature of an application under Right to Information Act where he seeks a direction to the bank to disclose how much is recovered and how much properties are attached," the counsel said.Counsel appearing for the official liquidator, Advocate Krutika Raghavan informed the court that it had filed an identical application before the Company Court, seeking details from State Bank of India. "They have already furnished some details. We've filed a misfeasance petition against the ex directors. This (Mallya) is an ex-director against whom I have filed a misfeasance petition for 17,000 crore. I believe he does not have any locus to maintain this petition itself," she said. Mallya's counsel then sought some time for a senior counsel to appear and argue the case. However, the court orally said,“You cannot file this petition before this court. Whatever you want, any details, you can go before the company court. Let your Senior counsel come. We will dismiss this in his presence.”Huilgol then submitted that Mallya is facing insolvency proceedings in the UK and requires the information for that purpose. "In fact he recently withdrew the insolvency proceedings because this petition is pending. So whatever information comes here he will use it in his insolvency proceedings,” he said.The Court however responded that motive of the party is irrelevant so far as maintainability of the petition is concerned. "The petition is not maintainable. Let your Senior come. We will have this matter on November 4," it said.The plea prays for a statement to be issued by the banks- of amounts realised by or in their favour and details of the original owners of the assets utilized for realising the amounts following the amended recovery certificate dated 10.04.2017, issued by the DRT.Further, a statement of assets owned by the petitioner, UBHL or third parties, and which are available with the banks but not yet utilized for the purpose of satisfying the alleged debt owed under the amended recovery certificate.The plea also by way of interim order prays for staying all further actions being undertaken by Banks pursuant to the amended recovery certificate dtd. 10.04.2017 issued by DRT, including further sales of the petitioner's assets lying with them.Case Title: Vijay Mallya AND Recovery Officer-II & OthersCase No: WP 3357/2025.

Vijay Mallya's Plea Seeking Information On Kingfisher's Outstanding Debt Prima Facie Not Maintainable: Karnataka High Court

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