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A $234 Million Lawsuit That May Help Mallya Repay Airline's Debt

  • Lawsuit was filed against International Aero Engines in 2012
  • Mallya says victory in case would help repay Kingfisher loans
Vijay Mallya.

Vijay Mallya.

Photographer: Rafiq Maqbool/AP Photo

The suspense surrounding India’s battle with bad loans and defaulters is getting deeper. 

A lawsuit over the quality of a jet engine may determine how much lenders can claw back from Vijay Mallya, the besieged founder of the failed Kingfisher Airlines Ltd. The catch: The nation’s famously snail-paced, gridlocked judiciary where some cases have dragged on for almost two decades. Banks need to agree to the plan and will respond on Thursday.