UBHL shares have been attached, can't be sold, ED tells HC

The Enforcement Directorate (ED)on Tuesday informed the High Court of Karnataka that they cannot permit selling of United Breweries (Holdings) Limited (UBHL) shares as they have already attached the shares.

The ED counsel made a written submission to the court that if the attached shares of UBHL have to be sold, then the shares have to be detached from ED.

In a previous hearing, UBHL had informed the court that they are ready to sell the company shares to repay loans to the banks. The consortium of banks had opposed this and said that the UBHL has already been attached by the ED and the shares cannot be sold. 

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

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

A division bench comprising Chief Justice S K Mukherjee and Justice P S Dinesh Kumar, hearing the OSA, directed the official liquidator attached to the court not to precipitate the matter and adjourned the next hearing after three weeks, when the court resumes after the vacation.

Notice to govt
The high court Tuesday ordered notice on the Revenue Department in a PIL challenging the amendment brought in to the Karnataka Land Revenue (Third Amendment) Rules, 2017. 

Residents of Hassan have challenged the amendment, which facilitates regularisiation of encroached gomal land.

The petitioners have sought quashing of the government notification which had added clause 4A to Rule 97 of the Karnataka Land Revenue (Third Amendment) Rules, 2017. They contended that the addition of clause 4A facilitates and authorises the deputy commissioner to regularise gomal land to a private person who has encroached upon the same.

They also argued that gomal land has been reserved by the government to be used as pasture land for cattle and it cannot be regularised by a private person who has illegally encroached upon it.