Liquor baron Vijay Mallya has the option to appeal the judgment that allowed banks to collect more than $1.55 billion over money laundering cases, but will first have to seek permission to appeal, Paul Gair, partner at UK law firm TLT LLP, said.

Mallya lost the $1.55 billion assets case in the UK High court over money laundering and fraud cases which had been charged by 13 Indian banks.

A significant ruling by the High Court in London has confirmed that a judgement of an Indian court is enforceable in the UK. The ruling makes the order of the Debt Recovery Tribunal secured by the consortium of 13 Indian banks against Vijay Mallya immediately enforceable against his assets. The court has also allowed a freezing order against Mallya’s assets worldwide to remain in place.

Judge Andrew Henshaw refused to overturn a worldwide order freezing Mallya's assets and upheld an Indian court's ruling that a consortium of 13 Indian banks was entitled to recover funds amounting to nearly $1.55 billion (£1.145 billion).

Gair represented the consortium of Indian banks successfully in the London court told CNBC-TV18 that this was “a very positive step.” This is the first ruling by an English court to have made such an order from the Indian Debt Recovery Tribunal enforceable in the UK.

The order from the High Court in London passed by Judge Andrew Henshaw covers assets that Vijay Mallya can be shown to hold in the UK up to the amount of the Debt Recovery Tribunal judgement which as at November totalled £1.145 billion. As listed before the court, his assets are believed to include the countryside estate Ladywalk where he lives, a property near Regents Park in London and Orange India Holdings, the firm that controls the Formula One racing team Force India.

TLT applied to register the Indian court order and applied for the worldwide freezing order in November 2017 but Mallya challenged those orders. Mallya's challenges have now been dismissed by the High Court in London. He has the option to appeal the judgement, but will first have to seek permission to appeal, said Gair.

Gair said the structure of Mallya’s assets will now be investigated with a view to determining the extent of any beneficial ownership. To that end, the banks are currently considering their next options. ​​

The victory for the banks will enable them to enforce the Indian judgement against Mallya's assets in England and Wales.

The worldwide freezing order prevents him from removing any assets from England and Wales up to that value or to in any way dispose of, deal with or diminish the value of his assets in or outside of this jurisdiction, up to the same value.

For the further proceedings, Gair said, the banks can proceed following the judgment issued by an English court and upon the law firm's instruction, take steps under the English procedural system.

First Published:May 10, 2018 8:57 AM IST