The High Court of Karnataka on Wednesday gave Vijay Mallya’s United Breweries (Holdings) Ltd. another chance to make a ‘fair’ offer to the banks for a one-time settlement of dues so that it could avert the court’s order for winding up the company for its failure to pay admitted liabilities to the unsecured and the secured creditors, as per its corporate guarantee extended to Kingfisher Airlines (KFA).
A Division Bench comprising Chief Justice Subhro Kamal Mukherjee and Justice Budihal R.B. made an oral observation in this regard while adjourning further hearing till April 4 on the appeal filed by UBHL against the winding up order. Earlier, it was pointed out by UBHL counsel that the company had written to the banks with regard to a one-time settlement as per the suggestion made by the Bench on March 15.
However, the counsel for the banks told the Bench that UBHL had only written to the banks asking about current schemes for one-time settlement of dues. The banks have responded to the company stating that there is no specific one-time settlement for this nature of case.
To this, the Bench made it clear that it is not concerned that the promoters of the company will suffer in case of winding up but is only concerned about the impact the winding up will have on 200 employees working in UBHL and small unsecured creditors.
Meanwhile, the counsel for the banks made it clear that UBHL has no other option but to make some payment to the banks if it has to sustain its appeal against the winding up order.
