Vijay Mallya suffers another legal setback, fails to delay $40mn Diageo claim

Diageo, which had acquired Mallya's United Spirits nearly six years ago, is claiming USD 40 million paid to him as part of an alleged breach of agreement

By PTI  
Friday, April 12, 2019

Even as Vijay Mallya renewed an appeal against his extradition to India, the liquor tycoon suffered another legal setback on Friday in a separate USD 40-million claims case brought by British liquor giant Diageo plc in the UK High Court.

Justice Clare Moulder ruled against the 63-year-old businessman's application to seek a delay in the full hearing in the case scheduled for May 23 and additionally ordered him to pay legal costs of 34,000 pounds.

She was extremely critical of the "unexplained" delays by Mallya in clearing the unpaid invoices of his previous solicitors Greenwoods, which resulted in his new solicitors Joseph Hage Aaronson (JHA) finding themselves in "difficulty" and wanting to seek an unfair adjournment.

"The delay is at best unexplained and arguably of the defendant's [Mallya] own making. In my view, the claimants [Diageo] are entitled to have their claim progressed expeditiously," Justice Moulder said, concluding that Mallya was the "author of its own misfortune".

Also Read: Vijay Mallya renews application before UK High Court to avoid extradition

"The claimants say that if the May hearing is adjourned they will suffer prejudice... there would be a race in relation to Mallya's assets which are subject to a number of competing claims; Mallya may be extradited and this will affect the ability to enforce the judgment against him," the judge noted, in reference to the extradition order and worldwide freezing order already in place against Mallya.

Diageo, which had acquired Mallya's United Spirits nearly six years ago, is claiming USD 40 million paid to him as part of an alleged breach of agreement.

The UK-based drinks giant is also claiming USD 140 million from Mallya, his son Sidhartha and two companies linked to them for alleged questionable payments.

The case, dating back to November 2017, is being contested by Mallya and will now go ahead for a full hearing at the Business and Property Courts of the UK High Court on May 23.

Also Read: UK High Court rejects Vijay Mallya's plea against extradition

Related Stories

India Cements' FY19 profit stands at Rs 69.4 crore against Rs 100.6 crore in previous fiscal
India Cements' FY19 profit stands at Rs 69.4 crore against Rs 100.6 crore in previous fiscal
Jaypee Infra insolvency: Creditors' meet on May 30 to discuss NBCC bid
Jaypee Infra insolvency: Creditors' meet on May 30 to discuss NBCC bid
L&T buys shares of MindTree worth over Rs 316 crore, raises stake by 2%
L&T buys shares of MindTree worth over Rs 316 crore, raises stake by 2%

Latest Stories

Two fire officials suspended after coaching centre blaze in Surat kills 22
Two fire officials suspended after coaching centre blaze in Surat kills 22
Saradha Chit Fund Scam: CBI summons ex-Kolkata police chief, asks him to appear before it on Monday
Saradha Chit Fund Scam: CBI summons ex-Kolkata police chief, asks him to appear before it on Monday
Reports of deteriorating health of Arun Jaitley false, baseless: Govt
Reports of deteriorating health of Arun Jaitley false, baseless: Govt
SPONSORED