Home Legal News Delhi HC Stays Insolvency Proceedings Against Anil Ambani For Default of Rs 1200 Crores To SBI

Delhi HC Stays Insolvency Proceedings Against Anil Ambani For Default of Rs 1200 Crores To SBI

by Shreya
Anil Ambani Reliance

The Delhi High Court has issued notice and stayed the proceedings initiated against him under Part III of the Insolvency & Bankruptcy Code in a plea moved by Anil Ambani challenging the appointment of a Resolution Professional for a personal guarantee given by him for loans taken by Reliance Communications Ltd (RCom) and Reliance Infratel Ltd (RITL) from the State Bank of India.

A Division Bench of Justice Vipin Sanghi and Justice Rajneesh Bhatnagar has, however, restricted Anil Ambani from alienating his assets till the next date of hearing.

The court has further said that the IBC proceedings against the corporate debtors shall continue.

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The order has come in a plea moved by Anil Ambani against the appointment of a Resolution Professional (RP) on personal guarantee given by him against a loan taken by Reliance Communications Ltd (RCom) and Reliance Infratel Ltd (RITL) from State Bank of India (SBI).

In addition to this, Ambani has also challenged the validity of the provision regarding the personal guarantee and bankruptcy by arguing that there is no enabling provision in the Insolvency and Bankruptcy Code (IBC) for such an order.

Also Read: NCLT Allows SBI to Initiate Insolvency Proceedings Against Anil Ambani for Rs1,200 Crore Defaults of RCom, RTIL

In March 2020, SBI had filed a petition before the Mumbai bench of the National Company Law Tribunal (NCLT) under section 95 of IBC for personal bankruptcy based on the guarantees issued by Ambani. Under sections 94 or 95 of the IBC, whenever a petition is moved in this regard, NCLT has to direct the Insolvency and Bankruptcy Board of India, within seven days of the application, to nominate a RP.

The court will next take up the matter on October 06.

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