BENGALURU: Fugitive businessman Vijay Mallya has approached the Karnataka HC claiming that the money recovered by banks towards the Rs 6,200 crore owed to them by his company, Kingfisher Airlines Ltd, is multiple times the principal debt amount, and has sought to know the details of the recoveries.
Justice R Devdas ordered notices on Wednesday to the recovery officer of the Debt Recovery Tribunal, Chennai, and SBI, Bank of Baroda, and other banks that had granted loans to Kingfisher Airlines Ltd. The hearing was adjourned to Feb 19.
“The petition is filed not to indicate that loan amounts should not be paid, but, under the Companies Act, if a debt is fully paid, the guarantor company (United Breweries Holdings Ltd, or UBHL) has no liability, and it can be revived. For that, an application must be made for revival. That can happen only after the recovery officer issues a certificate saying the debt has been recovered,” senior advocate Sajan Poovayya, appearing for petitioner UBHL, told the court.
“To date, recoveries continue, and no order has been passed yet to say whether the primary debt has been repaid or not,” Poovayya added.
The senior advocate clarified that the debt was recovered after an order was issued to wind up Kingfisher Airlines and UBHL, the holding company, and it attained finality with SC confirming it.
According to him, even though the amount due to the banks was recovered, additional recovery proceedings are still being carried out against the petitioner.
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