LONDON: Indebted businessman Vijay Mallya has avoided being made bankrupt in the London high court after a judge adjourned the bankruptcy petition the Indian banks brought against him, slamming it as “by any measure extraordinary”. Chief Insolvency and Companies Court judge Briggs adjourned the petition for “at least six months”, saying Mallya should be given time to pay the debts in full.
A consortium of 12 state-owned Indian banks led by State Bank of India and an asset restructuring company that purchased debt owed to other Indian banks had commenced bankruptcy proceedings against Mallya in the Insolvency and Companies List of the court on December 10, 2019.
The bankruptcy petition is based on a judgment debt of £1.05 billion (Rs 9,920 crore) made by the Debt Recovery Tribunal, Karnataka, in respect of unpaid loans given to Kingfisher Airlines, for which Mallya provided a personal guarantee. That judgment debt was registered in England on November 24, 2017.