Disposed¶57

State Bank of India v. Dr.Vijay Mallya

Karnataka HC12 Jun 2025CCC/1244/2014

Case brief

AI extract

What is this about?

Vijay Mallya civil contempt; complainants SBI and 14 other banks; breach of DRT undertaking dated 26.07.2013 in OA No.766/2013; creation of pledges; Article 215 Constitution; Sections 11 & 12 Contempt of Courts Act 1971; accused absconding; extradition from United Kingdom pending; complaint disposed with liberty to revive after accused secured; State Bank of India v. Dr.Vijay Mallya 2022 SCC Online SC 826 referred; nullification of advantage from contumacious conduct left for revival; High Court of Karnataka, 12-06-2025; K.S. Mudagal and P Sree Sudha JJ.

What did the court decide?

Liberty reserved to the complainant to revive the complaint after the presence of the accused is secured by the concerned authorities. ¶57

State Bank of India Vs Dr.Vijay Mallya — Contempt of Court | Karnataka HC (2025)

What the court decided

AI extract

Outcome

Liberty reserved to the complainant to revive the complaint after the presence of the accused is secured by the concerned authorities.

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Issue for consideration

Whether contempt proceedings against the accused for willful breach of the undertaking given to the Debt Recovery Tribunal on 26.07.2013 in OA No.766/2013 can proceed while the accused is absconding and not yet secured. +1 more

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Court's answer

Since the accused is absconding and extradition proceedings are ongoing and he is not secured, no purpose would be served by adjourning the matter time and again; the complaint is disposed of, reserving liberty to the complainant to revive it after the presence of the accused is secured by the concerned authorities.

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Key takeaways

The contention, drawn from the Supreme Court's decision in State Bank of India v. Dr.Vijay Mallya, that apart from punishing the contemnor appropriate directions may be issued so that any advantage secured by contumacious conduct is completely nullified, can be urged on revival of this case.obiter¶64

Detailed headnote1 paragraphs

Civil contempt — CCC No.1244/2014, High Court of Karnataka (K.S. Mudagal J, per order; P Sree Sudha J on Bench), disposed 12.06.2025. Fifteen banks complained under Article 215 of the Constitution and Sections 11 & 12 of the Contempt of Courts Act, 1971 seeking punishment of Dr.Vijay Mallya for willfully breaching the undertaking given to the Debt Recovery Tribunal on 26.07.2013 in OA No.766/2013 not to transfer, alienate or otherwise deal with assets till the next date of hearing, by creating pledges. With the accused absconding and extradition proceedings from the United Kingdom pending and the accused not secured, the Court held no purpose would be served by repeated adjournments and disposed of the complaint, reserving liberty to revive it once the accused's presence is secured. A contention, resting on the Supreme Court's decision in State Bank of India v. Dr.Vijay Mallya (2022 SCC Online SC 826), that directions may additionally issue to nullify any advantage gained by contumacious conduct, was noted as available to be urged on revival.

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NC: 2025:KHC:20322-DB CCC No.1244/2014

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HC-KAR

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12^TH DAY OF JUNE, 2025 PRESENT

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THE HON'BLE MRS. JUSTICE K.S.MUDAGAL

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AND

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THE HON'BLE MRS. JUSTICE P SREE SUDHA CIVIL CONTEMPT PETITION NO.1244/2014

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BETWEEN:

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STATE BANK OF INDIA A BANKING CORPORATION CONSTITUTED UNDER THE STATE BANK OF INDIA ACT, 1955 (23 OF 1955) HAVING ITS CORPORATE CENTRE AT STATE BANK BHAVAN MADAME CAMA ROAD NARIMAN POINT MUMBAI - 400 021

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Digitally signed by K S RENUKAMBA Location: High Court of Karnataka

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AND HAVING ITS BANGALORE BRANCH AT 2^ND FLOOR, OFFICE COMPLEX BUILDING SBI LHO COMPOUND, 65 ST. MARKS ROAD, BANGALORE – 560 001

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AXIS BANK LIMITED A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956 AND A BANKING COMPANY WITHIN THE MEANING OF SECTION 5(C) OF THE BANKING REGULATION ACT, 1949 AND HAVING ITS REGISTERED OFFICE AT TRISHUL, THIRD FLOOR, OPP. SAMARTHESWAR TEMPLE, LAW GARDEN, ELLISBRIDGE, AHMEDABAD - 380 006 GUJARAT, INDIA

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AND HAVING ITS CORPORATE OFFICE AT AXIS HOUSE, C-2, WADIA INTERNATIONAL CENTRE, PANDURANG BUDHKAR MARG

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NC: 2025:KHC:20322-DB CCC No.1244/2014

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HC-KAR

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WORLI MUMBAI – 400 025

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BANK OF BARODA A BODY CORPOATE UNDER THE BANKING COMPANIES (ACQUISITION AND TRANSFER OF UNDERTAKING) ACT, 1970 (5 OF 1970) HAVING ITS HEAD OFFICE AT BARODA HOUSE, P.B.NO.506, MANDAVI VADODARA-396006 ACTING THROUGH ITS BRANCH OFFICE AT P.O.BOX 11745 SAMATA BUILDING GENERAL BHOSALE MARG, NARIMAN POINT, MUMBAI-400021

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BANK OF INDIA A BODY CORPORATE UNDER THE BANKING COMPANIES (ACQUISITION AND TRANSFER OF UNDERTAKINGS) ACT, 1970 AND HAVING ITS HEAD OFFICE AT STAR HOUSE, C-5, G BLOCK, BANDRA KURLA COMPLEX, BANDRA (E), MUMBAI-400 051

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AND HAVING ITS LARGE CORPORATE BRANCH AT GROUND FLOOR, ORIENTAL BUILDING, 364, D.N.ROAD, FORT, MUMBAI-400 001

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CENTRAL BANK OF INDIA A BODY CORPORATE CONSTITUTED UNDER THE BANKING COMPANIES (ACQUISITION AND TRANSFER UNDERATAKINGS) ACT, 1980 AND HAVING ITS CORPORATE OFFICE AT CHANDRAMUKHI, NARIMAN POINT MUMBAI 560021 AND HAVING ITS CORPORATE FINANCE BRANCH (EARLIER KNOWN AS INDUSTRIAL FINANCE BRANCH) AT CHANDRAMUKHI GROUND FLOOR, NARIMAN POINT MUMBAI - 560021

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3 - NC: 2025:KHC:20322-DB CCC No.1244/2014

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HC-KAR

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CORPORATION BANK A BODY CORPORATE UNDER BANKING COMPANIES (ACQUISITION AND TRANSFER OF UNDERATAKING) ACT, 1980 (40 OF 1980) HAVING ITS CORPORATE OFFICE AT MANGALADEVI TEMPLE ROAD PANDESHWAR MANGALORE 575 001 AND HAVING ITS INDUSTRIAL FINANCE BRANCH, AT RALLARAM MEMORIAL BLDG., 1ST FLOOR, CSI COMPOUND MISSION ROAD BENGALURU 560027

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THE FEDERAL BANK LIMITED A COMPANY WITHIN THE MEANING OF THE COMPANIES ACT, 1956 HAVING ITS REGISTERED OFFICE AT FEDERAL TOWERS ALUVA 683 101, KERALA AND HAVING ITS BRANCH OFFICE AT ST MARKS ROAD 9, HALCYON COMPLEX ST MARKS ROAD BANGALORE 560 001

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IDBI BANK LIMITED A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956 AND A BANKING COMPANY WITHIN THE MEANING OF THE BANKING REGULATION ACT, 1949 HAVING ITS HEAD OFFICE AT IDBI TOWER, WTC COMPLEX CUFFE PARADE, MUMBAI 400 005 MAHARASHTRA, INDIA AND ACTING THROUGH ITS BRANCH OFFICE AT CORPORATE BANKING GROUP - FAMG 9TH FLOOR, IDBI TOWER WTC COMPLEX CUFFE PARADE, COLABA MUMBAI 400005 9. INDIAN OVERSEAS BANK

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- 4 - NC: 2025:KHC:20322-DB CCC No.1244/2014

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HC-KAR

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A BODY CORPORATED UNDER THE BANKING COMPANIES (ACQUISITION AND TRANSFER OF UNDERTAKING) ACT, 1970 HAVING ITS CENTRAL OFFICE AT 763, ANNA SALI CHENNAI 600002 AND ITS BRANCH OFFICE AT HARIKRIPA, 26-A, S V ROAD SANTACRUZ (W) MUMBAI - 400 054

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JAMMU & KASHMIR BANK LIMITED A BANKING COMPANY INCORPORATED UNDER THE PROVISIONS OF THE JAMMU & KASHMIR COMPANIES ACT NO.XI OF 1977 (SAMVAT) HAVING ITS REGISTERED OFFICE AT CORPORATE HEADQUARTER MAULANA AZAD ROAD SRINAGAR, KASHMIR 190001 AND ITS BRANCH OFFICE AT SYED HOUSE, 124 S V SAVARKAR MARG MAHIM (WEST) MUMBAI - 400 016

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PUNJAB & SIND BANK A BODY CORPORATE UNDER BANKING COMPANIES (ACQUISITION AND TRANSFER OF UNDERATAKING) ACT 1980 HAVING ITS HEAD OFFICE AT 21, RAJENDRA PLACE NEW DELHI 110 008 AND HAVING AMONGST OTHERS A BRANCH OFFICE AT J K SOMANI BUILDING BRITISH HOTEL LANE FORT, MUMBAI 400 023

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PUNJAB NATIONAL BANK A BODY CORPORATE UNDER THE BANKING COMPANIES, (ACQUISITION AND TRANSFER OF UNDERTAKING) ACT, 1970 (5 OF 1970) HAVING ITS HEAD OFFICE AT 7, BHIKAJI CAMA PLACE, NEW DELHI-110 607

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5 - NC: 2025:KHC:20322-DB CCC No.1244/2014

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HC-KAR

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ACTING THROUGH ITS LARGE CORPORATE BRANCH, AT CENTENARY BUILDING, 28, M.G.ROAD, BENGALURU-560 001.

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STATE BANK OF MYSORE A BODY CORPORATE CONSTITUTED UNDER THE STATE BANK OF INDIA (SUBSIDIARY BANKS) ACT, 1959, HAVING ITS HEAD OFFICE AT KEMPE GOWDA ROAD, BENGALURU-560 009 AND ITS CORPORATE ACCOUNTS BRANCH AT NO.18, RAMANASHREE ARCADE M.G.ROAD, BANGALORE-560 001.

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UCO BANK A BODY CORPORATE CONSTITUTED UNDER THE BANKING COMPANIES (ACQUISITION & TRANSFER OF UNDER TAKINGS) ACT 1970 AND HAVING ITS HEAD OFFICE AT 10, BTM SARANI, KOLKATA -700 001, WEST BENGAL, INDIA. AND ITS BRANCH OFFICE AT 1ST FLOOR, 13/22, K.G.ROAD, BENGALURU-560 009

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UNITED BANK OF INDIA A BODY CORPORATE UNDER THE BANKING COMPANIES (ACQUISITION AND TRANSFER OF UNDERTAKING) ACT, 1970 (5 OF 1970) HAVING ITS HEAD OFFICE AT 11, HEMANTA BASU SARANI, KOLKATA-700001 ACTING THROUGH ITS BRANCH OFFICE AT 40, K.G. ROAD, BENGALURU-560 009. COMPLAINANTS NOS.1 TO 15 REPRESENTED BY MR.S.RANGA VITTAL,

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NC: 2025:KHC:20322-DB CCC No.1244/2014

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HC-KAR

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AGE 50 YEARS, S/O MR.C.N.SRINIVASAN, ASSISTANT GENERAL MANAGER & CASE LEAD OFFICER VI STATE BANK OF INDIA. II FLOOR, OFFICE COMPLEX BLDG, SBI LHO COMPOUND 65, ST. MARKS ROAD, BENGALURU 560 001. … COMPLAINANTS

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(BY SRI.VIKRAM A HUILGOL, SR. ADVOCATE FOR SRI.VEERENDRA PATIL, ADVOCATE)

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AND:

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DR.VIJAY MALLYA S/O LATE SRI VITTAL MALLYA AND RESIDING AT 3, VITTAL MALLYA ROAD BENGALURU - 560 001 KARNATAKA, INDIA ALSO AT P.O.BOX, 17112, JEBEL ALI FREE ZONE, DUBAI UAE EMAIL:[email protected] …ACCUSED

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(BY SRI.RAJENDRA M S, ADVOCAE FOR SRI.VIVEK HOLLA, ADVOCATE)

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THIS CCC IS FILED UNDER ARTICLE 215 OF THE CONSTITUTION OF INDIA AND SECTIONS 11 & 12 OF THE CONTEMPT OF COURTS ACT, 1971 PRAYING TO INITIATE CONTEMPT PROCEEDINGS AGAINST THE ACCUSED/DR.VIJAY MALLYA AND PUNISH HIM IN ACCORDANCE WITH LAW FOR HAVING WILLFULLY BREACHED THE UNDERTAKING GIVEN TO THE DEBT RECOVERY TRIBUNAL ON 26.07.2013 IN OA NO.766/2013 THAT HE WOULD NOT TRANSFER, ALIENATE OR OTHERWISE DEAL WITH ITS ASSETS TILL THE NEXT DATE OF HEARING, BY CREATING PLEDGES.

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THIS PETITION, COMING ON FOR FRAMING OF CHARGES, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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CORAM: HON'BLE MRS. JUSTICE K.S.MUDAGAL AND HON'BLE MRS JUSTICE P SREE SUDHA

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NC: 2025:KHC:20322-DB CCC No.1244/2014

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HC-KAR

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ORAL ORDER

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(PER: HON'BLE MRS. JUSTICE K.S.MUDAGAL)

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Learned counsel for the complainant and accused submit

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that the accused is absconding and it is further submitted that

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some extradition proceedings to extradite him from United Kingdom to India are going on and he is still not secured. No purpose will be served adjourning this matter time and again unless the accused is secured. Therefore, reserving liberty to the complainant to revive the complaint, after presence of the accused is secured by the concerned authorities, the complaint is disposed of.

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At this stage, Sri Vikram A Huilgol, learned Senior counsel appearing for Sri Veerendra Patil, advocate on record for the complainant submits that in the similar matter against the same accused Hon’ble Supreme Court in State Bank of

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India and ors vs. Dr.Vijay Mallya¹ has held that in such cases apart from punishing the contemnor for his contumacious conduct, the majesty of law may demand that appropriate directions be issued by the Court so that any advantage secured as a result of such contumacious conduct is completely

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1 2022 SCC Online SC 826

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NC: 2025:KHC:20322-DB CCC No.1244/2014

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HC-KAR

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nullified. The said contention can be urged on revival of this

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case.

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