Yet another Blow To Mallya, Court Orders Winding Up Of UBHL To Recover Rs 146 Crore Dues

In yet another setback to liquor baron Vijay Mallya, the Karnataka High Court today ordered the winding up of United Breweries (Holdings) Ltd (UBHL), the parent company of UB Group, to recover dues to the tune of Rs 146 crore payable by the UBHL-promoted defunct Kingfisher Airlines Limited.

The creditors including BNP Paribas, the lead petitioner, State Bank of India and aircraft lessors and engine makers such as Rolls Royce and IAE had moved the court to get back their dues.

"This court has come to a conclusion that the respondent company UBHL deserves to be wound up for failure to discharge their duties to pay up their creditors," Justice Vineet Kothari said in his order allowing petitions by banks and aircaft lessors.

The judge said the assets of the respondent company could be handed over to official liquidator to complete the winding up process as per the law.

The lenders to Kingfisher Airlines filed the case against UBHL seeking dues from the now defunct airline. UBHL had given corporate guarantees for loans to run Kingfisher, which has virtually caused the collapse of Mallya's liquor empire. Mallya owns a 52.34 percent in United Breweries Holdings Limited.

Justice Kothari also disposed of all Interlocutory Applications filed by UBHL.

The latest blow to the liqour baron comes after a CBI court last month issued a non-bailable warrant against him in the Rs 720-crore IDBI Bank loan default case as the agency sought his extradition from the UK.