Bengaluru:
Liquor Baron Vijay Malle has presented to the Superior Court of Karnatak Breweries Holdings Limited (UBHL ,, now in liquidation) and other certificate debtors.
The Superior Court on Wednesday issued a notice to the banks in response to the petition presented by the fugitive businessman.
Judge R Devdas ordered banks to respond before February 13.
The lawyer Senior Sajan Poovayya, who represents Malleya, argued that the settlement order against Kingfisher Airlines and his company, UBHL, had remained at all judicial levels, including the Supreme Court.
He argued that debts had already been recovered, but additional recovery procedures continued against Malleya.
Poovaiah informed the court that a debt recovery court (DRT) had ordered Kingfisher Airlines, such as the main debtor, and UBHL, as guarantor, to pay RS 6,200 million rupees.
“That order reached the purpose. However, between 2017 and now, the 6,200 million rupees have recovered several times. The liquidator states that the banks have recovered their fees, and even the Minister of Finance informed the Parliament that They have recovered 14,000 million rupees, “he said.
He clarified that the petition does not dispute the reimbursement of loans, but argues that according to the Business Law, once the debt is completely reimbursed, the guarantor company (UBHL) has no remaining responsibility and can seek revival.
However, this process requires a certification of the recovery officer confirming that the debt has been completely resolved, which has not yet been issued. Meanwhile, recoveries continue without clarity on whether the main debt has been completely paid.
The plea asks the banks to provide a statement that details the amounts recovered in their favor, together with information about the original owners of the assets used to generate these recoveries, after the certificate of amended recovery issued by the DRT on the 10 April 2017.
In addition, it seeks a record of any asset belonging to Malleya, UBHL or third parties that remain with the banks but have not yet been used for the recovery of loans.
As a provisional relief, the petition also sought a stay in any additional sale of assets by the banks under the amended recovery certificate until clarity is provided in the complete settlement of the debt.
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