Bengaluru: In a setback to UB Holding Chairman Vijay Mallya, the Karnataka High Court on Tuesday admitted the plea of BNP Paribas, a France-based company, seeking the winding up of UB Group's principal investment holding company.
The court has been hearing a batch of petitions filed by at least 10 Kingfisher's creditors – including ATR, BNP Paribas and Rolls-Royce & Partners Finance Ltd, praying to wrap up the Kingfisher Airline and United Breweries (Holdings) Ltd (UBHL), a key shareholder of the airline and guarantor of its debt.
The court had earlier reserved its order on the plea filed by BNP Paribas, but admitted it on Tuesday.
The court, however, has granted four weeks to UBHL to file an appeal before the division bench to seek a stay against the admission of the petition. After the deadline, advertisements will be published in newspapers asking creditors to approach court for seeking their dues.
Justice Anand Byrareddy admitted the petition along with direction to the petitioners to issue a newspaper advertisement in this connection after four weeks from Tuesday
(November 19).
“The defence raised by the respondent company is prima facie invalid. The respondent has omitted to pay debt without reasonable cause in spite of receipt of valid notice and is unable to pay its debt in terms of section 433 (e) of the Company Act 1956,” the court observed.
