Mumbai. The long-running financial dispute involving businessman Vijay Mallya and a consortium of banks has once again come before the Bombay High Court. During the hearing, the court observed that the dispute has continued for nearly a decade and should now move towards a logical conclusion.

The case relates to loans taken by Kingfisher Airlines from several banks. After the loans remained unpaid, the lenders initiated legal proceedings to recover their money. The dispute later expanded to include questions concerning Mallya’s assets and their attachment.

Mallya left India in March 2016 and moved to the United Kingdom. Legal proceedings against him continued in India, and he was declared a fugitive economic offender in 2019.

 Challenge Over Attached Assets

In 2020, Mallya challenged an order of a special court that allowed a consortium of banks to use assets attached by the Enforcement Directorate for recovery of outstanding dues.

Mallya argued that the order concerning his assets was legally incorrect. His challenge subsequently came before the Bombay High Court.

 Court Seeks Practical Solution

Justice Milind Jadhav’s single-judge bench heard the matter and highlighted the long duration of the dispute.

The court observed that the matter has been continuing for almost a decade and should now reach a logical outcome.

The court also emphasized that parties involved in commercial disputes should look for practical solutions instead of remaining engaged in prolonged litigation.

The Enforcement Directorate has also been asked to provide information about the current status of the investigation and the attached properties.

 Economic Impact

The court indicated that a financial dispute of this scale can have consequences beyond the immediate parties. Long-pending claims involving banks and substantial sums of money can have wider economic implications.

For this reason, the court stressed the need for the parties to move towards a resolution.

 February Hearings

Other petitions filed by Mallya were also heard by the Bombay High Court in February.

A bench comprising Chief Justice Chandrashekhar and Justice Gautam Ankhad considered two petitions challenging proceedings under the fugitive economic offender law and the order declaring Mallya a fugitive economic offender.

During the February 12 hearing, the court raised questions about Mallya’s return to India and asked whether he intended to return and submit to the jurisdiction of Indian courts if he wanted relief.

At the February 18 hearing, Mallya’s side said that he was not in a position to specify when he would return to India. His lawyers referred to restrictions imposed by courts in England.

 Mallya’s Legal Argument

Senior advocate Amit Desai, appearing for Mallya, requested that the two petitions be heard separately.

He argued that the petitions should not be denied consideration merely because Mallya was not physically present in India.

His legal team also referred to earlier decisions where constitutional courts had considered cases despite the physical absence of petitioners.

 What Happens Next

The next stage of the case will be important as the High Court has sought information from the Enforcement Directorate about the investigation and attached assets.

The banks have continued their efforts to recover outstanding dues, while Mallya has challenged various legal actions concerning his assets.

The court’s latest observations indicate a push towards bringing the long-running dispute to a practical and logical conclusion.