In a fresh trouble for embattled businessman Vijay Mallya, a contempt application was filed by a consortium of 17 banks in the Karnataka High Court today against the flamboyant liquor baron, his grounded airline Kingfisher Airlines and UBHL for allegedly violating an undertaking given to the Debt Recovery Tribunal (DRT) that they would not alienate unencumbered assets nor deal with them.

"We have filed a contempt application in the High Court against Kingfisher Airlines, United Breweries Holdings Limited (UBHL) and Dr Vijay Mallya for violating an undertaking given before DRT," N Chintan Chinappa, counsel for consortium of banks, said.

The application came up for hearing before the High Court and an undertaking was submitted by Chinappa before Justice N K Patil. The undertaking was given before the DRT mentioning that the unencumbered assets will not be alienated nor dealt with but Mallya violated it by going ahead and creating pledges.

Justice Patil took cognisance of the complaint and ordered notice to Mallya and two other companies in contention. The HC posted the matter for another day.

It is notable that a consortium of 17 banks had lent over Rs 7,000 crore to Kingfisher Airline and these banks have started proceedings to recover the debt under the available legal avenues using the underlining securities which they had. The securities included shares in multiple group companies and real estate.

The bankers had publicly stated in February 2013 that they had no faith in the ability of the management of Kingfisher to revive the company.