SBI had moved the Debt Recovery Tribunal because Mallya owes over Rs 7,200 crore to a consortium of banks led by State Bank of India
The court ruled in favour of a group of creditor banks, owed money by Mallya's now-defunct Kingfisher Airlines, and who had argued they had the 'first right' to that money.
Kingfisher, which stopped flying more than three years ago, had $1.4 billion in debts as of September 2013, according to corporate filings from the time.
Mallya said in a statement on Sunday that he was in talks with banks for a one-time settlement of Kingfisher's debt, adding that he had no plans to run away from his creditors.
I am not an absconder, says Mallya
I am not an absconder, says Mallya
SBI seeks Mallya family's full asset disclosure
Mallya's sole regret: Kingfisher is not flying when oil is cheap!
Mallya sinks deeper, as ED registers case against him