Journalism of Courage
Banks can’t continue to charge interest on recovered amounts: Vijay Mallya in Karnataka High Court
The creditor banks raised the issue of Vijay Mallya’s fugitive status, while also questioning whether the Karnataka High Court was an appropriate forum for his petition.
Vijay Mallya argued before the Karnataka High Court Tuesday that banks must not charge further interest (Express File Photo)
Fugitive businessman Vijay Mallya argued before the Karnataka High Court Tuesday that banks must not charge further interest on the amount they have recovered from him and UB Holdings.
A bench of Justice Lalitha Kanneganti heard the matter.
Meanwhile, the creditor banks raised the issue of Mallya’s fugitive status, while also questioning whether the High Court was an appropriate forum for his petition.
Senior Advocate Sajjan Poovayya, representing Mallya, said Tuesday, “The Debt Recovery Tribunal had issued a certificate for Rs 6,200 crore and interest… that resulted in multiple recoveries. The recovery officer certificates indicate that something like Rs 10,000 crore has been recovered….the finance minister on the floor of the House makes a statement that the amount fully recovered is Rs 14,131 crore.”
About the interest on the due amount after supposed recovery by the bank, he stated, “Interest cannot accrue from then to now. If they have received Rs 1,000 crore and it is attributed, it is only on the balance amount that interest can apply.”
Representing the creditor banks, Senior Advocate Vikram Huilgol pointed to the conduct of Vijay Mallya.
“The petitioner is declared a fugitive offender. He wishes not to participate in any of the proceedings; it is a brazen violation of all the court orders. Is he entitled to knock on the doors and request your lordships to direct the respondents to do A, B or C?” Huilgol asked.
He added Mallya had not come to the court with “clean hands.” He also stated that the recoveries were in a provisional state (and thus accruing interest) as the banks were themselves bound by statutes.
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On his part, Poovayya stated that, under the legal proceedings ongoing in the UK, Mallya could not leave the territory of England and Wales.
The petition filed by Mallya against his creditors earlier this year requested a statement of amounts realised by them, along with details of the original asset owners as per the Debt Recovery Tribunal’s recovery certificate from 2017.
It also calls for another statement of assets owned by Mallya or UBHL in the creditors’ possession, alongside an interim stay on recovery efforts and asset sales. Mallya has stated on social media that the creditor banks in question have recovered debts in excess of the amount actually owed by him.
The respondents in this case include a recovery officer of the Debts Recovery Tribunal, a financial asset reconstruction company, and 10 banks, including the State Bank of India (SBI), Punjab National Bank, Bank of Baroda and others.
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Last Wednesday, the High Court expressed concerns about the maintainability of the petition at the High Court, rather than a company court, during the previous hearing of the matter.
The matter is set to be heard further on November 12.
© The Indian Express Pvt Ltd
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