The debt Recovery Tribunal (DRT) on Friday reserved orders on an application moved by State Bank of India (SBI) pertaining to the attachment of the $75-million severance package Diageo has promised UB Group chairman Vijay Mallya. A ruling on this application is expected to be made on Monday.
SBI’s plea in the DRT holds that the bank should have the first right of the funds from Diageo as Mallya had stepped down from the board of United Spirits and the money should be deposited in the DRT.
There are four applications pending with the DRT and this was the one particular application (severance package) it chose to deal with on Friday. The other applications deal with matters like seizure of Mallya’s assets, impounding of his passport and his arrest.
The bank filed four applications on March 2, 2016, seeking orders for restraining payment of the severance package to Mallya and issue direction for depositing the money with the DRT. Senior counsel Uday Holla, who appeared on Mallya’s behalf, filed his objections on Friday afternoon and later presented his argument.
After arguments from SBI and Mallya’s counsel, presiding officer judge R Benakanahalli reserved his orders. The DRT indicated it would take up other applications immediately thereafter.