Sources from London stated that in another setback to vijay Mallya, the UK High Court has directed the embattled liquor tycoon to pay British beverage giant Diageo over USD 135 million in relation to a collateral arrangement. Reportedly Diageo is seeking a total of USD 175 million from the 63 year old businessman and was successful in one aspect of that claim as it was awarded a "summary judgment" by Justice Robin Knowles, who dismissed Mallya's reliance on an alleged oral promise from Diageo dating back to February 2016.
Meanwhile over and above the USD 135 million, Mallya is liable to pay interest incurred at a commercial rate as well as 200,000 pounds towards legal costs. Justice Knowles said "I have reached the conclusion that at this stage, it is clear the second claimant (Diageo Holdings netherlands) is entitled to succeed," dismissing Mallya's defense that an oral promise over-rides any claim of such a payment.
He said "The court was clear in rejecting Dr Mallya's claim that there was a deal other than the one we signed. Diageo has consistently rejected those assertions. At all times through the protracted acquisition of the United Spirits Limited (USL), Diageo acted appropriately and in accordance with all legal obligations. All arrangements with Dr Mallya have been fully disclosed and accounted for”. Moreover the remainder of the USD 175 million, including USD 40 million paid directly to Mallya, sought by Diageo will proceed to trial expected at a much later date.
