India: SBI-led consortium of banks opposes Heineken’s application to implead in case between Kingfisher Airlines and the banks

An SBI-led consortium of banks on June 22 opposed Dutch beer major Heineken’s application to implead in a case between the banks and Kingfisher Airlines Ltd before the Debt Recovery Tribunal (DRT) in India, the Hindu Business Line reported.

Heineken holds a 43 per cent stake in United Breweries Ltd, which runs Kingfisher.

“At this stage, money lent by the banks and their recovery is being given priority. It (Heineken’s application) cannot be allowed or decided,” a senior counsel appearing for the consortium argued before Presiding Officer CR Benakanahalli.

Heineken is seeking an “anticipatory relief”. The application can be allowed or entertained only at the time of recovery, or while recovery proceedings are taken up, the consortium’s counsel contended.

Counsel appearing for Heineken, quoting a few high court judgments, argued that it has some presumptive rights on UBL shares owned by the company’s chief Vijay Mallya.

It hence wants to be made a party in the proceedings and get rights on purchase of shares attached and sold as per court order.

However, the banks’ counsel said a number of agreements and rights are being produced without getting authenticated. The Tribunal does not have the right to judge them either.

The Presiding Officer said he will give orders while disposing of all the interlocutory applications before he takes up the original application filed by the consortium for recovering dues from Kingfisher and other Mallya-owned companies.

23 June, 2016