UBHL winding up case: Next hearing on December 20

Bengaluru: The Karnataka High Court Monday adjourned to December 20 the hearing on a plea which sought not to wind up liquor baron Vijay Mallya-linked UBHL and give the company an opportunity to clear the debts related to his defunct Kingfisher Airlines Limited.

The bankers and creditors have been pressing for 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 crore.

During the hearing Monday, UBHL counsel Sajjan Poovayya submitted that there was no need to wind up the company as it has enough assets to repay the creditors. Poovayya said the company would furnish details of its assets and the court can auction them and the recovered money can be deposited with it.

He submitted that the company would get about Rs 15,000 crore if the assets were auctioned. Even after giving money to the creditors, the company would be still left with about Rs 3,500 crore, he said.

In February last, the high court had ordered winding up of United Breweries (Holdings) Ltd (UBHL), the parent company of the UB Group, for recovering dues payable by UBHL-promoted Kingfisher Airlines Limited.

Justice Vineet Kothari had said in his order on petitions by banks and aircraft lessors that UBHL deserves to be wound up for “failure to discharge” their duties to pay up their creditors. Leaving creditors in the lurch, Mallya had fled India and taken shelter in London.

However, a London court had ruled on December 10 that the 62-year-old businessman had a prima facie case of fraud and money laundering to answer and ordered his extradition.