A SPECIAL court has issued notices to the recovery officer of the Debts Recovery Tribunal (DRT), Bangalore, over a plea filed by Vijay Mallya-linked United Breweries (Holdings) Limited (UBHL) regarding the tribunal’s order to sell shares of the company next week.
According to the application filed by UBHL before the Mumbai court, the DRT had issued an order on March 11 directing that the consortium of banks led by the State Bank of India to sell the shares of UBHL as part of its proceedings.
UBHL had claimed in its plea that the DRT order is overreaching as the said shares are already part of the proceedings of the special court in Mumbai.
It was submitted to the court that without the approval of the court, the DRT cannot pass such an order for the sale of the shares.
The court directed UBHL to serve a notice to the tribunal so that it appears before it for hearing on the plea. According to UBHL’s plea, 74,04,392 shares belonging to it will be sold in the open market on March 27 as per the DRT’s order.
The company claims that a 2016 order by the special court designated under the Prevention of Money Laundering Act, which related to the attachment of Mallya’s properties, will be breached if the shares are sold.
UBHL has therefore sought a stay on the sale. The court will hear the plea next week.