Debt tribunal can direct Mallya to pre-deposit 3,101 cr

Last Updated 31 May 2018, 07:35 IST

The counsel representing the consortium of banks and financial institutions that lent money to the defunct Kingfisher Airlines Limited, informed the court that the Debt Recovery Appellate Tribunal (DRAT), Chennai, was well within its jurisdiction to direct Vijay Mallya to pre-deposit Rs 3,101 crore for considering his appeal against DRT, Bengaluru order.

On Wednesday, the counsel contended that the amount demanded was only about one-third of Rs 10,000 crore owed to the banks.

He added that the Union government had itself initiated extradition proceedings against Mallya as he continues to remain elusive.

However, the senior counsel representing Mallya contended that the DRAT could not have passed an order on March 28, 2018, directing for pre-deposit Rs 3,101 crore, when the appeal filed by Mallya against DRT, Bengaluru’s order, itself was dismissed on January 2, 2018.

He stated that the latest order passed on April 25, 2018, wherein the DRAT dismissed the two applications seeking restoration of the appeal and condonation of delay on grounds of non-compliance of March 28,2018, the
order is also without jurisdiction.

In response to the concern of Mallya returning his debts, his counsel stated that Mallya is not in a position to clear his debts as all his accounts are frozen.

He further added that money amounting to over Rs 1,200 crore is lying in deposits with the high court.

(Published 30 May 2018, 19:23 IST)

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