Why seek more after recovering ₹14,131 crore, Karnataka HC asks SBI-led banks
What Happened
The Karnataka High Court questioned why the consortium of banks led by State Bank of India should pursue United Breweries Limited shares after assets worth ₹14,131.6 crore had already been recovered against loans of ₹6,203 crore extended to the now-defunct Kingfisher Airlines. The bench of Justices D K Singh and T M Nadaf held that there was no justification for the consortium’s claim over the disputed UBL shares and ruled that Diageo Holdings Netherlands BV had priority over them.
Key Takeaways
The dispute involved competing creditor claims. The court held that the pledge of UBL shares connected to a separate Standard Chartered Bank loan created an enforceable security interest, whereas the Kingfisher lenders’ reliance on Vijay Mallya’s personal guarantee and contractual restrictions did not by themselves give them a proprietary interest in those shares.