SC orders winding up of UBHL to recover Rs 11,000 crore King

 

The Supreme Court on Monday allowed winding up of United Breweries Holding Ltd (UBHL) for recovery of dues payable by Kingfisher Airlines to creditors, including banks, and dismissed the company’s plea against it liquidation.

A bench of Justices U U Lalit, Vineet Saran and S Ravindra Bhat upheld the Karnataka high court verdict on winding up the company and dismissed an appeal filed by UBHL against the judgment.

UBHL has been fighting a legal battle for the last three years after a single bench of the HC had in 2017 ordered winding up which was then challenged before a division bench rejected the firm’s plea in March.

Senior advocate C S Vaidyanathan, appearing for the company, told the SC bench that assets of around Rs 14,000 crore belonging to UBHL, Vijay Mallya and other entities had been attached by the Enforcement Directorate when the total debt was only around Rs 6,000 crore. He said attachment orders had been challenged which were pending before a tribunal and no purpose would be solved by winding up the firm.

Senior advocate Mukul Rohatgi, appearing for the SBI-led consortium of lender banks, opposed the UBHL's plea and contended that only Rs 3,595 crore had so far been recovered and the firm still owed over Rs 11,000 crore.

Observing that winding up the firm should be the last resort, the SC granted extensive hearing to all parties but finally dismissed UBHL’s plea.

 

Post a Comment

Previous Post Next Post