Companies

UB can defend itself before forums, rules Karnataka Court

Krishnaprasad Bengaluru | Updated on January 15, 2018 Published on April 17, 2017


The Karnataka High Court on Monday allowed the management of the United Breweries (Holdings) Ltd, which is ordered to be liquidated, to represent and defend itself before various forums, including the Enforcement Directorate (ED), Debt Recover Tribunal and Debt Recovery Appellate Tribunal, in various proceedings against the company for now.

A Division Bench comprising Chief Justice Subhro Kamal Mukherjee and Justice PS Dinesh Kumar passed the interim order after noticing that the official liquidator has not yet taken charge of the UBHL pursuant to the order passed by a single judge bench, which in February had ordered for winding up of UBHL to recover dues to the unsecured and secured creditors as per its corporate guarantee extended to Kingfisher Airlines Ltd (KFA).

Meanwhile, the Bench asked the counsel representing the ED to seek instructions from the directorate to a proposal made by the UBHL to sell about 41 lakh shares of United Spirits Ltd (USL), which were held by the UBHL and now under attachment by the ED in connection with a case registered under the Prevention of Money Laundering Act against businessman Vijay Mallya.

The UBHL proposed to deposit the amount, which could be realised by selling these shares before the court to demonstration that it is a going concern and for convincing the Division Bench to stay the order of winding up passed by a single judge bench.

The Bench adjourned hearing till April 20.

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Published on April 17, 2017
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