This insolvency process was initiated by the State Bank of India (SBI)
This insolvency process was initiated by the State Bank of India (SBI) in connection with the recovery of Rs 1,200 crore loan given to two Anil Ambani companies.
SBI had given loans to Anil Ambani’s companies
This insolvency process was started in connection with the recovery of Rs 1,200 crore loan given by the State Bank of India (SBI) to two companies of Anil Ambani. Ambani had given a personal guarantee in August 2016 for loans of Rs 565 crore and Rs 635 crore, respectively, given by SBI to RCom and Reliance Infratel Limited (RITL).
The Bench of Justice Vipin Sanghi and Justice Rajneesh Bhatnagar prohibited IRP under Bankruptcy and Insolvency Disability Code (IBC) as well as transfer of its assets or legal rights and interests on Ambani till the next hearing, lending, taking or selling any Banned.
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Asked to clear stance before October 6, the court issued notices to the Central Government, the Insolvency and Bankruptcy Board of India (IBBI) and SBI in this regard and asked them to clarify their stand before it. The next hearing of this case is to be held on October 6. The court also said that action will continue in respect of corpo rate debtors (companies), and during this time the liabilities of private guarantees (Ambani) can also be examined by the IRP.
The court said, “However, action against the petitioner (Ambani) under Part Three of the IBC will be postponed.”
The NCLT gave the order to start the insolvency process on August 20,
Ambani in his petition challenged the constitutionality of the IBBI’s Regulation (Insolvency Resolution Pr \oced ure to give personal guarantee to the lending company) 2019. The National Company Law Tribunal (NCLT), in its order dated 20 August, had asked to initiate the insolvency process against Ambani. CLT had said that both Reliance Communications and Reliance Infratel failed to repay the loan installments. The NCLT had ordered the appointment of a solution professional and asked SBI to take necessary action.
