News By/Courtesy: Dhruv Agrawal | 16 Jun 2020 1:00am IST

State Bank of India moved the insolvency court (NCLT) to recover more than Rs 1,200 crore from Anil Ambani under the personal guarantee clause of the bankruptcy law. It said Ambani had personally guaranteed loans taken by Reliance Communications, currently undergoing insolvency proceedings, which the state-owned lender is trying to recover.

SBI moved the National Company Law Tribunal (NCLT) under Section 97(3) of Insolvency and Bankruptcy Code (IBC), seeking its intervention[i] to direct the insolvency board to nominate a resolution professional (RP). The RP would assess and submit a report on the assets owned by Anil Ambani. On Thursday, lawyers representing Ambani sought time to file their reply. The NCLT bench presided over by BSV Prakash Kumar gave them a week.

Senior counsel Venkatesh Dhond along with Ryan Dsouza is representing State Bank of India while Anil Ambani is represented by senior advocate Harish Salve. “The bank is aiming to recover a sizeable amount from the personal guarantees made by Anil Ambani on loans to Reliance Communications,” said a bank official aware of the matter.

“Since there is no ban on personal insolvency cases, we have sought an urgent hearing of this matter in the NCLT.” It is the policy of the bank not to comment on individual accounts and their treatment, an SBI spokesperson told ET. “An application filed by the creditor for the appointment of resolution professional for the personal guarantor is required to be decided by the NCLT,” said Ashish K Singh, managing partner of law firm Capstone Legal. “The adjudication requires instructions to the Insolvency and Bankruptcy Board of India (IBBI) to nominate a resolution professional. As per the IBC, the nomination has to be done in 10 days upon receiving instructions from NCLT.”

THIS ARTICLE DOES NOT INTEND TO HURT THE SENTIMENTS OF ANY INDIVIDUAL, COMMUNITY, SECT, OR RELIGION ETCETERA. THIS ARTICLE IS BASED PURELY ON THE AUTHOR'S PERSONAL VIEWS AND OPINIONS IN THE EXERCISE OF THE FUNDAMENTAL RIGHT GUARANTEED UNDER ARTICLE 19(1)(A) AND OTHER RELATED LAWS BEING FORCE IN INDIA, FOR THE TIME BEING.

Section Editor: Pushpit Singh | 16 Jun 2020 14:50pm IST


Tags : Reliance Infratel, Reliance Communication, Anil Ambani, Mukesh Ambani, Debt, Loan, Billionaire, Company, Bankruptcy

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