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Mallya told to pay £200K towards banks’ legal costs

Vidya Ram London | Updated on June 15, 2018 Published on June 15, 2018

Vijay Mallya   -  Reuters

Vijay Mallya has been required to pay State Bank of India and 12 other banks seeking the recovery of debts, £200,000 (₹1.8 crore) by June 5 this year, towards the cost of the legal case being pursued against him, according to court documents in the UK.

The amount is an initial payment, with possible further costs to be determined.

The amount is non-appealable.

After Mallya’s attempt to throw out the registration of a ruling by India’s Debt Recovery Tribunal in the UK, and a worldwide freezing of international assets failed in May, Judge Andrew Henshaw required Mallya to pay the costs of the World Freezing Order application, as well as his applications to set aside and discharge those orders.

In an order from May 10, the Judge at the Business and Property Courts of the Queen’s Bench Commercial court required Mallya to pay the claimants’ costs in these matters which were subject to “detailed assessment, if not agreed”.

The costs of registering the Bangalore Debt Recovery Tribunal’s January 2017 ruling in the UK, will also be subject to “detailed assessment, if not agreed’ and added to the DRT judgment, the document said. “The first defendant is to make a payment to the claimants in the sum of £200,000 on account of the claimants’ costs… by June 5, 2018,” the document read.

“The standard order is that the court will assess those costs unless the parties can otherwise agree a figure for what should be paid,” a legal expert explained.

“The court assessment of costs is a separate process, which ends with another court hearing before a specialist costs judge.

“In the meantime, the court ordered that Mallya pay £200k towards this costs liability.”

Mallya is currently seeking permission to appeal the commercial court’s ruling that dismissed his efforts to quash the worldwide freezing order and the registration of the DRT case in the Court of Appeal.

That process is still ongoing.

The banks’ case is being pursued independently of India’s efforts to extradite him back to India to face charges relating to fraud and money laundering.

A final hearing in the case — where both sides put forward their closing remarks has been delayed from the middle of July to July 31.

While the extradition efforts focus on an alleged fraud centring around loans provided by IDBI Bank, the debt-recovery and asset freezing efforts are being pursued by 13 banks led by the State Bank of India and include Bank of Baroda, Corporation Bank, Federation Bank, IDBI Bank, Indian Overseas Bank, Jammu & Kashmir Bank Ltd, Punjab and Sind Bank, Punjab National Bank, State Bank of Mysore, UCO Bank, United Bank of India and JM Financial Asset Reconstruction.

Published on June 15, 2018
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