Indian businessman Vijay Mallya lost his appeal on Wednesday against a bankruptcy ruling issued by London’s High Court concerning a debt exceeding 1 billion pounds ($1.28 billion) owed to various lenders, including the State Bank of India.
Residing in the UK, Mallya has been involved in a protracted legal dispute with creditors and Indian authorities following the 2012 failure of his airline, Kingfisher Airlines.
In 2017, a consortium of banks secured a judgment in India against Mallya for over 1 billion pounds, which he had guaranteed for Kingfisher Airlines’ liabilities.
This judgment was recognized in the UK later that same year, culminating in a bankruptcy order against Mallya in 2021.
During a hearing in February, Mallya’s legal team contended that the banks had already recouped assets that effectively settled the debt, prompting his appeal against the bankruptcy order.
However, his appeal was dismissed on Tuesday, with Judge Anthony Mann stating in a written decision that “the bottom line … is that the bankruptcy order stands.”
Mallya’s legal representatives indicated that he intends to continue his efforts to overturn the bankruptcy ruling.
Additionally, Mallya, who co-owned the Formula One team Force India, is also contesting extradition to India to address fraud allegations related to the collapse of Kingfisher Airlines.
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His latest extradition appeal was denied in 2020, but Mann noted in his ruling that the extradition order “has still not been enforced.”
“Apparently Dr. Mallya is still resisting extradition on other grounds that remain unresolved,” Mann remarked.
