In a major jolt to liquor baron Vijay Mallya, the Karnataka high court on Tuesday ordered the winding up of United Breweries (Holdings) Ltd (UBHL), the parent company of UB Group, for recovering dues payable by the UBHL-promoted defunct Kingfisher Airlines Limited.
“This court has come to a conclusion that the respondent company UBHL deserves to be wound up for failure to discharge their duties to pay up their creditors,” Justice Vineet Kothari said in his order allowing petitions by banks and aircraft lessors.
Justice Kothari of the Dharwad Bench of the high court pronounced the order through video conferencing.
The creditors including BNP Paribas, the lead petitioner, State Bank of India and aircraft lessors and engine makers such as Rolls Royce and IAE had moved the court to get back their dues of Rs 146 crore.
The judge said the assets of the respondent company cannot be left under the control of UBHL and could be handed over to official liquidator to achieve the winding up process s per the law.
“The assets whatever are left now cannot be left under he control, possession and management of the respondent company, and if necessary could be handed over to official liquidator to proceed further until winding up of the respondent company is achieved in accordance with the law,” he said.
The lenders to Kingfisher Airlines filed the case against UBHL seeking dues from the now defunct airline. UBHL had given corporate guarantees for loans to run Kingfisher, which has virtually caused the collapse of Mallya’s liquor empire.
Mallya owns a 52.34 per cent in United Breweries Holdings Limited.
Justice Kothari also disposed of all Interlocutory Applications filed by UBHL.
The latest blow to the liqour baron comes after a Central Bureau of Investigation court last month issued a non-bailable warrant against him in the Rs 720-crore IDBI Bank loan default case as the agency sought his extradition from the United Kingdom.
Earlier, the Debt Recovery Tribunal here had ordered the State Bank of India-led consortium of banks to start the process of recovering over Rs 6,203 crore, at 11.5 per cent annual interest rate, from the embattled tycoon and his companies in another Kingfisher Airlines case.
Source: Rediff