Fugitive liquor baron Vijay Mallya immediately misplaced a authorized battle to carry on to his plush London dwelling after a British court docket refused to grant him a keep of enforcement in a long-running dispute with Swiss financial institution UBS.
The 18/19 Cornwall Terrace luxurious condominium overlooking Regent’s Park in London, described in court docket as an “terribly invaluable property value many tens of hundreds of thousands of kilos”, is at present being occupied by Mallya’s 95-year-old mom Lalitha.
Delivering his judgment nearly for the Chancery Division of the Excessive Court, Deputy Grasp Matthew Marsh concluded there aren’t any grounds for him to grant additional time for the Mallya household to repay a 20.4-million-pound mortgage to UBS – the claimant within the case.
“The claimant’s place was an affordable one… additional time will not be more likely to make any materials distinction,” Deputy Grasp Marsh dominated.
“I will even add from my overview of the correspondence, I can see no foundation no matter for the suggestion that has been made that the claimant has misled the primary defendant (Vijay Mallya)… in conclusion, I dismiss the primary defendant’s software,” he stated.
The decide additionally declined permission to attraction towards his order or to grant a brief keep of enforcement, which implies UBS can proceed with the possession course of to grasp its unpaid dues.
“I’ll refuse permission to attraction and due to this fact it follows that I cannot be granting a keep,” stated Marsh.
Mallya’s barrister, Daniel Margolin QC, indicated that the 65-year-old businessman plans to pursue an attraction earlier than a Excessive Court Chancery Division Choose because it has “critical penalties” for his shoppers, together with Mallya’s aged mom who at present resides on the tackle.
In the meantime, Fenner Moeran QC made it clear that UBS intends to proceed with the enforcement order at once.
The case pertains to a mortgage taken out by Rose Capital Ventures, certainly one of Mallya’s corporations, with the previous Kingfisher Airways boss, his mom Lalitha and son Sidhartha Mallya listed as co-defendants with proper of occupancy of the property.
In May 2019, Choose Simon Barker had handed down a consent order permitting the household to retain possession with a ultimate deadline of April 30, 2020, granted for compensation of the mortgage. That deadline did not be met and with particular guidelines in place over the COVID-19 pandemic interval, UBS was legally unable to pursue enforcement till April 2021.
When the financial institution sought a court docket order for enforcement in October final 12 months, Mallya filed an software of keep on the grounds that the financial institution had positioned “unreasonable obstacles” in his path to repay the sums via household belief funds. His authorized crew additionally produced a non-binding letter claiming an organization was keen to amass the property, which might assist repay the mortgage.
Nevertheless, Deputy Grasp Marsh concluded that the letter was of “restricted help” and expressed “actual doubts concerning the bonafide of that supply”.
Below the May 2019 order, UBS had been granted an “fast proper to possession” and Mallya and the co-defendants weren’t permitted to make any additional purposes to “postpone or droop the date for giving up possession”.
The court docket order additionally forbade any additional claims arising out of the chapter proceedings towards Mallya by a consortium of Indian banks led by State Financial institution of India (SBI), proceedings which concluded in a chapter order in July final 12 months.
In the meantime, Mallya is needed in India to face costs of fraud and cash laundering amounting to an alleged Rs 9,000 crores associated to loans made to his now-defunct Kingfisher Airways.
The previous United Breweries chief stays on bail within the UK whereas a “confidential” authorized matter, believed to be associated to an asylum software, is resolved following separate extradition proceedings.