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Vijay Mallya case: Heated argument in DRT

Vijay-Mallya

Bengaluru: A heated argument ensued in the Debt Recovery Tribunal today after counsel for consortium of banks led by SBI called some defendants, including Vijay Mallya, “shameless” over the issue of disclosure of the balance sheets in the case.

While taking up the three Interlocutory Applications (IAs) of Kingfisher Finvest by the DRT’s Presiding Officer C R Benakanahalli, counsel for bankers assailed the defendants including Mallya, United Breweries Holdings Limited and Kingfisher Airlines Limited, saying: “If you (defendants) want to prove our charges of fraud wrong, you should disclose the balance sheets. It has not been done and we have to deal with such persons- they are shameless.”

Sajan Poovaiah, counsel for Kingfisher Finvest, hit back at bankers’ counsel, saying the bankers have been shameful in their endeavours to give loans to Mallya even after he had defaulted.

“I object to the unparliamentary words used by bankers’ counsel. If he resorts such a language I will also give it back in the same coin,” Poovaiah said.

“In fact it has been the bankers who are shameless, who doled out money belonging to the people, to a person who has defaulted in repaying loans. And they did not take due diligence in recovering loans. I appeal to the tribunal to direct the bankers counsel to take back the word,” he said.

In a counter submission, bankers’ counsel said he used the unparliamentary words not against Kingfisher Finvest but other defendants.

Making submissions earlier, Poovaiah asked the tribunal to dismiss bankers’ plea seeking ‘Lifting of Corporate Veil’ by arguing that the original application did not mention it.

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. .

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