BENGALURU: DRT Presiding Officer CR Benakahanahalli today said the tribunal will take up at least seven Interlocutory Applications, including three Interlocutory Applications (IA) filed by Kingfisher Finvest India Private Limited, for final hearing from today in the Vijay Mallya case.
During the Debt Recovery Tribunal’s proceedings post-lunch session, counsel for Kingfisher Finvest pleaded before the Presiding Officer to hear the company’s three IAs, including the ‘Lifting of Corporate Veil’, which is being heard by the tribunal after the bankers’ made the plea.
The bankers had pleaded before the DRT for ‘Lifting of Corporate Veil’ to pierce the protection against personal liability enjoyed by individuals controlling the company.
The doctrine of Lifting of Corporate Veil means disregarding the corporate personality and looking behind the persons controlling the company.
In other words, where a fraudulent and dishonest use is made of the legal entity, the individuals concerned – in this case Mr Mallya – will not be allowed to take shelter behind the corporate personality.
However, before admitting to give a final hearing on Kingfisher Finvest India’s three IAs, the Presiding Officer, argued that he would rather take up the hearing at the disposal stage of the final hearing.
“The crux of the matter is the fixing of liability, which the tribunal can do at the disposal stage of the final hearing. I am not saying that I will not give a hearing on priority basis, but was making a point,” he said.
Counsel for Kingfisher Finvest also pleaded to hear on priority basis the IA regarding attachment of dividends that Mangalore Chemicals Fertilisers (MCF) had paid Kingfisher Finvest India.
The bankers had moved the tribunal to attach dividends that MCF had paid to Kingfisher Finvest India, which the tribunal gave an ex-party order in lenders’ favour. However, senior counsel for State Bank of India countered the submission of the company by terming it as a delaying tactic.