Bengaluru: The High Court on Wednesday orally directed United Breweries (Holdings) Ltd (UBHL) to deposit some amount’ with the court to consider the application for granting stay on the single bench order for winding up of UBHL.
The UBHL has filed an original side appeal (OSA) challenging the single bench order which had directed winding up of UBHL for its inability to pay debts to international companies and a consortium of banks. It contended that it has no obligation to make any payments as it was only the principal guarantor.
During the hearing, the counsel for UBHL said that it had written a letter to the State Bank of India for a one-time settlement (OTS) to which SBI had responded that the amount, Rs 6,203 crore plus interest during the pendency of the case, is too huge?for an OTS. Lenders had filed a case against UBHL seeking their dues from the now defunct Kingfisher Airlines. The UBHL had given corporate guarantees for loans to run Kingfisher, which has virtually caused the collapse of Vijay Mallya’s liquor empire. Mallya owns 52.34 per cent stake in UBHL. Hearing the appeal, a division bench comprising Chief Justice S K?Mukherjee and Justice R B Budihal granted time and adjourned the next hearing to April 4.
