Vijay Mallya, the embattled former Indian businessman and liquor tycoon, has lost his appeal against a UK bankruptcy order tied to an Indian court judgment exceeding £1 billion. The ruling, delivered on 9 April 2025, is a major setback for Mallya and adds to his long-standing legal woes, which include money laundering and fraud charges in India.

Background: Bankruptcy Petition

Mallya, the former chairman of Kingfisher Airlines and head of the United Breweries Group, had personally guaranteed loans to Kingfisher that defaulted. Indian banks, led by State Bank of India, secured a judgment from India’s Debts Recovery Tribunal (DRT), which was later registered in England after Mallya relocated to the UK in 2016. This formed the basis of the 2018 bankruptcy petition in the UK.

 

Legal Dispute and Court Findings

Mallya argued that the banks held adequate security for the debts and claimed the bankruptcy petition was invalid under the UK Insolvency Act 1986. However, Chief ICC Judge Briggs ruled in 2021 that the petitioners were allowed to amend their filing, explicitly waiving any such security rights—enabling the bankruptcy order to proceed.

 

In the latest appeal judgment, Sir Anthony Mann:

• Confirmed that no security existed in legal terms;

• Upheld the banks’ amended petition;

• Rejected all grounds for appeal, stating the bankruptcy order stands.

   

What’s Next for Mallya?

Mallya plans to file for annulment of the order in October 2025, a move that, if successful, could reverse the bankruptcy and reinstate his prior legal status. The annulment could be granted if:

1. The bankruptcy was improperly made; or

2. The debt has been repaid or secured.

If unsuccessful, Mallya’s assets will remain under the control of the Trustee in Bankruptcy, who holds extensive powers to investigate and recover global assets—including any hidden or offshore holdings.

Failure to disclose assets could trigger criminal charges, with prison time as a consequence.

 

Broader Legal Impact

The case serves as a stark reminder that UK insolvency law is robust and enables cross-border enforcement of foreign judgments. While the UK remains a destination of choice for global HNWIs, it is no legal safe haven—especially for those facing serious financial and criminal allegations abroad.

 

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