State Bank of India & Ors v Mallya [2021] EWHC 191 (Ch) (08 February 2021)

State Bank of India & Ors v Mallya [2021] EWHC 191 (Ch) (08 February 2021)

Validation order not required for living expenses and bankruptcy defence costs as prior order applies; court refuses validation for costs relating to Indian proceedings, WFO, extradition, and Diageo litigation as they fall outside the narrow exception for defence of bankruptcy petition.

Citation
[2021] EWHC 191 (Ch)
Parties
Respondent/petitioners: State Bank of India and Others; Applicant/debtor: Dr Vijay Mallya
Jurisdiction
England and Wales
Judgment Date
08 February 2021
Procedural Posture
Bankruptcy Petition / Application for Validation Order and Payment Out of Court Funds
Outcome
Application granted in part; validation and payment out permitted for living expenses and bankruptcy defence costs, refused for Indian proceedings, WFO, extradition, and Diageo litigation costs.
Legal Topics
Validation Orders, Payment of Legal Fees, Living Expenses, Linked Litigation Costs, Freezing Orders, Extradition Proceedings
Insolvency Bankruptcy Civil Procedure Validation Orders Payment of Legal Fees Living Expenses Linked Litigation Costs Freezing Orders +1 more

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Parties

State Bank of India and Others

Respondent/petitioners

Dr Vijay Mallya

Applicant/debtor

Procedural Posture

Bankruptcy Petition / Application for Validation Order and Payment Out of Court Funds

Legal Issues

  1. 1 Whether funds held in Court Funds Office can be used to discharge legal fees and living expenses
  2. 2 Whether validation orders should be granted for costs relating to linked proceedings in India, WFO, extradition, and Diageo litigation

Ratio Decidendi

Validation order not required for living expenses and bankruptcy defence costs as prior order applies; court refuses validation for costs relating to Indian proceedings, WFO, extradition, and Diageo litigation as they fall outside the narrow exception for defence of bankruptcy petition.

Court Disposition

Application granted in part; validation and payment out permitted for living expenses and bankruptcy defence costs, refused for Indian proceedings, WFO, extradition, and Diageo litigation costs.

Orders

  • Payment out of CFO Monies for living expenses and bankruptcy defence costs as per First Validation Order.
  • Validation order refused for costs relating to Indian proceedings, WFO, extradition, and Diageo litigation.