High Court tells UBHL to settle matter with banks

The Karnataka High Court on Wednesday directed United Breweris (Holdings) Limited (UBHL) to come up with a possible proposal to settle the matter with the consortium of banks. 

UBHL has filed an original side appeal challenging the single bench order which had directed winding up UBHL for its inability to pay debts to international companies and consortium of banks. It has contended that it has no obligation to make any payments as they were only the principal guarantor.

A division bench, comprising Chief Justice S K Mukherjee and Justice R B Budihal hearing the appeal, orally said that if UBHL is having bonafide claims, then some amount must be deposited or to mutually settle the matter with the banks. 

The lenders had filed a case against UBHL seeking their dues from the now defunct Kingfisher Airlines. UBHL had given corporate guarantees for loan to run Kingfisher, which virtually caused the collapse of Vijay Mallya's liquor empire. Mallya owns 52.34% of shares in UBHL. The bench adjourned the next hearing to March 22.

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