Setback for Vijay Mallya: Can't appeal against London HC verdict

LONDON: In yet another setback to fugitive businessman Vijay Mallya, the second-highest court of the United Kingdom - the Court of Appeal in England - has denied him permission to appeal against a high court judgment in favour of 13 Indian banks, saying his grounds for the plea "were totally without merit".
Mallya had sought permission to appeal against the May 8 judgment of the London HC which paved the way for the recovery of the Rs 9,990 crore he owes the 13 banks.The HC judge had also dismissed his application to have the worldwide freeze order on his assets discharged. The HC verdict had set a legal precedent: it marked the first recorded case of a judgment of a Debt Recovery Tribunal (DRT) in India being registered by the HC.
Mallya's counsel had argued that DRT Bengaluru judgment was "not permitted to be enforced in England".
Mallya's counsel argued that only verdicts from courts whose "civil jurisdiction is subject to no pecuniary limit, and those sealed with a seal showing that" could be registered in England.
However, in its order dated July 24, Lord Justice Flaux of the Court of Appeal refused Vijay Mallya permission for appeal, saying the grounds for the same had "no real prospect of success".
TOI has a copy of the order in which Justice Flaux observed that "there is no requirement for an 'express statement on the judgment or the seal that the jurisdiction is subject to no pecuniary limit'." Justice Flaux said his decision was final and could not be appealed. "There is ample material from which the judge was entitled to conclude that the risk of dissipation was made out," he added.
Paul Gair, who represented the 13 banks in the case, said the Court of Appeal's order was not only positive news for the Indian banks but also "for other foreign banks that bring claims against parties who have defaulted on loans and taken up residence in England and Wales or have assets within this jurisdiction".
"This means that our clients can continue with enforcing the judgment without further challenge to the registration under English law. Our clients continue to consider all of the enforcement options available to us in order to recover the full amount owing to them, and will pursue these actions as and when appropriate," Gair added.
Mallya has been summoned to appear before a special PMLA court in Mumbai on August 27 under the new fugitive offenders law.