Big blow to Vijay Mallya as Karnataka HC orders closure of United Breweries Ltd

“This court has come to a conclusion that the respondent company UBHL deserves to be wound up for failure to discharge their duties to pay up their creditors,” Justice Vineet Kothari said in his order allowing petitions by banks and aircraft lessors.

Justice Kothari of the Dharwad Bench of the High Court pronounced the order through video conferencing. 

The creditors including BNP Paribas, the lead petitioner, State Bank of India and aircraft lessors and engine makers such as Rolls Royce and IAE had moved the court to get back their dues of Rs 146 crore. 

The judge said the assets of the respondent company cannot be left under the control of UBHL and could be handed over to official liquidator to achieve the winding up process as per the law. 

“The assets whatever are left now cannot be left under the control, possession and management of the respondent company, and if necessary could be handed over to official liquidator to proceed further until winding up of the respondent company is achieved in accordance with the law,” he said. 

The lenders to Kingfisher Airlines filed the case against UBHL seeking dues from the now defunct airline. UBHL had given corporate guarantees for loans to run Kingfisher, which has virtually caused the collapse of Mallya’s liquor empire. Mallya owns a 52.34 per cent in United Breweries Holdings Limited. Justice Kothari also disposed of all Interlocutory Applications filed by UBHL.