JOIN USThe UK High Court has ordered embattled liquor tycoon Vijay Mallya to pay a minimum of 200,000 pounds towards the costs incurred by 13 Indian banks in their legal battle to recover alleged dues.
Last month, Judge Andrew Henshaw had refused to overturn a worldwide order freezing Mallya’s assets and upheld an Indian court’s ruling that a consortium of 13 Indian banks led by State Bank of India (SBI) were entitled to recover funds amounting to nearly 1.145 billion pounds.
As part of the judgement, the court has also ordered Mallya, 62, to pay costs towards registration of the worldwide freezing order and of the Debt Recovery Tribunal (DRT) of Karnataka’s judgment in Britain.
"The court ordered that Mallya pay the banks’ costs. The standard order is that the court will assess those costs unless the parties can otherwise agree a figure for what should be paid,” said a legal expert familiar with the case.
The court's assessment of costs is a separate process, which ends with another court hearing before a specialist costs judge in the UK. But in the meantime, Mallya must pay 200,000 pounds towards this legal costs liability.
In a high court ruling dated May 8, Judge Henshaw had refused to overturn a worldwide order freezing Mallya’s assets and upheld an Indian court’s ruling that the consortium of 13 Indian banks – State Bank of India, Bank of Baroda, Corporation bank, Federal Bank Ltd, IDBI Bank, Indian Overseas Bank, Jammu and Kashmir Bank, Punjab and Sind Bank, Punjab National Bank, State Bank of Mysore, UCO Bank, United Bank of India and JM Financial Asset Reconstruction Co. Pvt Ltd – were entitled to recover funds amounting to nearly 1.145 billion pounds.
The legal costs owed to the banks emerged in a subsequent court order by the same judge.