Mallya fails to convince UK court on banks' attempt to recover dues
London: Vijay Mallya on Wednesday failed to convince a UK High Court to dismiss an order related to money in one of his London bank accounts, dealing a blow to the embattled liquor tycoon's efforts to prevent a consortium of Indian banks getting access to nearly 260,000 pounds.
In one of the many legal cases being faced by the 63-year-old liquor tycoon in the UK, Master David Cook ruled that an interim debt order in favour of SBI and other banks seeking access to funds in the ICICI UK bank account "should remain in force" but that the application to make it final should be adjourned until after the hearing of Mallya's pending bankruptcy
The funds in the account will meanwhile remain frozen as part of the worldwide freezing order in favour of the Indian banks last year.
Mallya's lawyers had argued for the dismissal of the interim order on a number of grounds, including a claim that it was a "deliberate ploy" to prevent Mallya "reasonable" living expenses.
"I reject the proposition that the application for a TPDO (third party debt order) was a deliberate ploy to thwart Dr Mallya's ability to meet his ordinary living expenses and reasonable legal expenses which are permitted under the terms of the WWFO (worldwide freezing order)," Master Cook notes in his judgment.
"The relevant context here is that Dr Mallya is in a post judgment scenario where the Claimants (Indian banks) are attempting to enforce their judgment and discover the true extent of his assets. I note that Dr Mallya has made no voluntary payment to date while continuing to incur substantial legal costs in opposing the Claimants' efforts to enforce their judgment," he said.