Vijay Mallya-linked UBHL pleads with Karnataka HC not to shut down company

Liquor baron Vijay Mallya-linked UBHL has pleaded before the Karnataka High Court not to wind up the company to clear the debts related to his defunct Kingfisher Airlines Limited.

The bankers and creditors have been pressing for the closure of the company to clear the debts owed by Mallya, wanted for alleged bank fraud and money laundering amounting to an estimated Rs 9,000 crores.

Last year in February, the Karnataka High Court had ordered winding up of United Breweries (Holdings) Ltd (UBHL), the parent company of UB Group, for recovering dues payable by the UBHL-promoted Kingfisher Airlines Limited.

UBHL deserves to be wound up for "failure to discharge" their duties to pay up their creditors, Justice Vineet Kothari had said in his order on petitions by banks and aircraft lessors.

During the hearing of UBHL's interlocutory application filed before a division bench Monday, the company pleaded that it will furnish details of its assets and its contributories as well as the money that has to be given to the banks and other trade creditors for the winding up action, company's counsel Sajan Poovayya told PTI.

The court can auction them and whatever money is recovered would be deposited with it, the petitioner has told the court.

The company has estimated that it will get about Rs 15,000 crore, Poovayya said, adding that UBHL has urged the court that it can take a call on how much is to be given to the banks and others.

"The company has stated that even after giving money to the bankers, there will still be about Rs 3,500 crore. The company will utilise that money. Hence, there is no need to wind it up," Poovayya said.

The matter has been posted for hearing on December 17.

Leaving the creditors in the lurch, Mallya fled India and took shelter in London.

However on Monday, a London court ruled that the 62-year-old businessman had a prima facie case of fraud and money laundering to answer and ordered his extradition.