The Karnataka High Court has ordered that United Breweries (Holdings) Ltd (UBHL), the parent company of UB Group, be wound up for recovery of dues payable by UBHL-promoted defunct Kingfisher Airlines Ltd.
This has come as a major blow to former Rajya Sabha MP and liquor baron Vijay Mallya, who is presently taking shelter in the UK.
While issuing an order through video conferencing, Justice Vineet Kotheri said,“It has been concluded that UBHL merits to be wound up for failing to pay up their creditors.”
He said the creditors, including BNP Paribas, petitioner, SBI 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 of the Dharwad Bench said the respondent company’s assets can’t be left under the UBHL’s control and as per law could be handed over for being dissolved. “The assets, whatever are left, could be handed over to official liquidator to proceed further until the respondent firm is winded up in accordance with the law,” he added.
The lenders of Kingfisher Airlines had filed the case against UBHL seeking dues from the now defunct airline. Mallya owns a 52.34 per cent in the UBHL.
Justice Kothari also discarded all of the UBHL’s Interlocutory Applications. Seeking his extradition from the UK, a CBI court last month had issued a non-bailable warrant against Mallya in Rs 720-crore IDBI Bank loan default case.
Earlier, the Debt Recovery Tribunal had ordered the SBI-led consortium of banks to start recovery of more than loans worth Rs 6,203 crore, at 11.5 per cent annual interest rate, from Mallya and his firms in another Kingfisher Airlines case.