LONDON: Embattled Vijay Mallya and his son Siddharth have misplaced a $135-million (Rs 1,190 crore) battle in the top court introduced against them through the world’s greatest manufacturer of spirits Diageo.
Diageo sued the duo in addition to Watson Limited, an offshore corporate registered in Mauritius, whose stocks are held on trust to Mallya, and Continental Administration Services Limited (CASL), a Mallya family trust registered in St Kitts and Nevis, of which the family are beneficiaries, in the top court in London on Friday.
Its claim was once to claw back a $40 million (Rs 352 crore) payout Diageo had made to Mallya in 2016, as part of the $75 million (Rs 661 crore) agreement for his departure from United Spirits (USL), in addition to a $135-million loan Diageo had refinanced for Mallya’s corporate Watson.
Diageo, famend for brands like Johnnie Walker, had agreed to pay $40 million to Mallya in cash and $7 million every year for 5 years thereafter when he was once got rid of as chairman from USL on 25 February 2016. Diageo holds a 54% stake in USL. Diageo has no longer paid $7 million in 2017, 2018 or 2019 and now desires to get the $40 million back claiming breach of contract.
Mallya has a counter-claim against Diageo for $21 million for the unpaid bite of the $75-million agreement.
The business court heard that when Diageo in November 2012 was once in the process of acquiring stocks in USL, it agreed to change into a backstop guarantor of the $135-million loan that Watson then owed ICICI Bank. Watson had borrowed the cash to finance its 50% stake in Mallya’s Force India F1 workforce.
Diageo sued the duo in addition to Watson Limited, an offshore corporate registered in Mauritius, whose stocks are held on trust to Mallya, and Continental Administration Services Limited (CASL), a Mallya family trust registered in St Kitts and Nevis, of which the family are beneficiaries, in the top court in London on Friday.
Its claim was once to claw back a $40 million (Rs 352 crore) payout Diageo had made to Mallya in 2016, as part of the $75 million (Rs 661 crore) agreement for his departure from United Spirits (USL), in addition to a $135-million loan Diageo had refinanced for Mallya’s corporate Watson.
Diageo, famend for brands like Johnnie Walker, had agreed to pay $40 million to Mallya in cash and $7 million every year for 5 years thereafter when he was once got rid of as chairman from USL on 25 February 2016. Diageo holds a 54% stake in USL. Diageo has no longer paid $7 million in 2017, 2018 or 2019 and now desires to get the $40 million back claiming breach of contract.
Mallya has a counter-claim against Diageo for $21 million for the unpaid bite of the $75-million agreement.
The business court heard that when Diageo in November 2012 was once in the process of acquiring stocks in USL, it agreed to change into a backstop guarantor of the $135-million loan that Watson then owed ICICI Bank. Watson had borrowed the cash to finance its 50% stake in Mallya’s Force India F1 workforce.
Diageo wins $135 million case against Vijay Mallya
![Diageo wins $135 million case against Vijay Mallya]()
Reviewed by Kailash
on
May 26, 2019
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