STATE BANK OF INDIA AND ORS versus DR. VIJAY MALLYA

STATE BANK OF INDIA AND ORS versus DR. VIJAY MALLYA

Respondent Dr. Vijay Mallya was found guilty of contempt for disbursing US$40 million in violation of the High Court orders and this Court's directions. He was sentenced to four months' imprisonment and fined Rs.2,000, with an additional two months' imprisonment if the fine was not deposited within the stipulated time. The Ministry of Home Affairs was directed to secure his presence to undergo imprisonment. The transactions effecting the disbursement of US$40 million (as described in paragraph 16 of the Judgment dated 09.05.2017) were held to be void and inoperative; the contemnor and the beneficiaries under those transactions were directed to deposit the amounts received along with...

Parties
Petitioner: State Bank of India and Ors.; Respondent: Dr. Vijay Mallya
Jurisdiction
India
Judgment Date
11 July 2022
Procedural Posture
Contempt Petition / Disposed
Outcome
Contempt petitions disposed of; contemnor convicted of contempt
Legal Topics
Punishment for Contempt, Purging of Contempt, Reversal/voiding of Transactions, Disgorgement of Benefits, Directions to Recovery Officer, Appointment of Forensic Auditor
Contempt of Court Inherent Jurisdiction Recovery Proceedings Extradition (procedural) Punishment for Contempt Purging of Contempt Reversal/voiding of Transactions Disgorgement of Benefits +2 more

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Parties

State Bank of India and Ors.

Petitioner

Dr. Vijay Mallya

Respondent

Procedural Posture

Contempt Petition / Disposed

Legal Issues

  1. 1 Whether respondent (Dr. Vijay Mallya) committed contempt by disbursing US$40 million contrary to High Court orders and orders of this Court
  2. 2 Whether this Court could assume jurisdiction to deal with contempt arising from orders of the High Court in the same cause
  3. 3 What punishment is appropriate for the contemnor and what directions are necessary to purge the contempt and nullify advantages obtained by contumacious conduct

Ratio Decidendi

Respondent Dr. Vijay Mallya was found guilty of contempt for disbursing US$40 million in violation of the High Court orders and this Court's directions. He was sentenced to four months' imprisonment and fined Rs.2,000, with an additional two months' imprisonment if the fine was not deposited within the stipulated time. The Ministry of Home Affairs was directed to secure his presence to undergo imprisonment. The transactions effecting the disbursement of US$40 million (as described in paragraph 16 of the Judgment dated 09.05.2017) were held to be void and inoperative; the contemnor and the beneficiaries under those transactions were directed to deposit the amounts received along with...

Court Disposition

Contempt petitions disposed of; contemnor convicted of contempt

Orders

  • Contemnor (Dr. Vijay Mallya) sentenced to four months' imprisonment and fined Rs.2,000 to be deposited in the Registry within four weeks; if fine not deposited within time, contemnor to undergo further sentence of two months
  • Ministry of Home Affairs, Government of India, New Delhi directed to secure presence of the contemnor to undergo the imprisonment imposed