State Bank of India & Ors v Mallya

State Bank of India & Ors v Mallya

Validation orders previously granted for living expenses and bankruptcy defence costs remain effective; payment out of Court Funds Office is appropriate for these validated expenses. No validation order is granted for costs of Indian proceedings, WFO, extradition, or Diageo litigation as they fall outside the narrow Sinclair exception and lack sufficient evidence or justification.

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 / Ruling on Application for Validation Orders and Payment Out of Court Funds
Outcome
Application granted in part, refused in part.
Legal Topics
Validation Orders, Payment Out of Court Funds, Living Expenses, Legal Fees, Linked Proceedings, Freezing Orders, Extradition, Costs Orders
Insolvency Bankruptcy Validation Orders Payment Out of Court Funds Living Expenses Legal Fees Linked Proceedings Freezing Orders +2 more

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Parties

State Bank of India and Others

Respondent/petitioners

Dr Vijay Mallya

Applicant/debtor

Procedural Posture

Bankruptcy Petition / Ruling on Application for Validation Orders 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 under section 284 Insolvency Act 1986 for payments related to bankruptcy defence, linked proceedings, WFO, extradition, and Diageo litigation

Ratio Decidendi

Validation orders previously granted for living expenses and bankruptcy defence costs remain effective; payment out of Court Funds Office is appropriate for these validated expenses. No validation order is granted for costs of Indian proceedings, WFO, extradition, or Diageo litigation as they fall outside the narrow Sinclair exception and lack sufficient evidence or justification.

Court Disposition

Application granted in part, refused in part.

Orders

  • Payment out of Court Funds Office for living expenses and bankruptcy defence costs as previously validated.
  • Validation orders refused for costs relating to Indian proceedings, WFO proceedings, extradition proceedings, and Diageo litigation.