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Delhi HC Issues Notice In Anil Ambani's Plea Seeking Impleadment of Chinese Banks In His Case Against SBI

Karan Tripathi
12 Oct 2020 4:15 PM GMT
Delhi HC Issues Notice In Anil Ambanis Plea Seeking Impleadment of Chinese Banks In His Case Against SBI
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Delhi High Court has issued notice in an application moved by Anil Ambani seeking the impleadment of Chinese banks in his pending petition challenging the appointment of a Resolution Professional for personal guarantee given by him for loans taken by Reliance Communications Ltd (RCom) and Reliance Infratel Ltd (RITL) from the State Bank of India. The Division Bank of Justice Vipin...

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Delhi High Court has issued notice in an application moved by Anil Ambani seeking the impleadment of Chinese banks in his pending petition challenging the appointment of a Resolution Professional for personal guarantee given by him for loans taken by Reliance Communications Ltd (RCom) and Reliance Infratel Ltd (RITL) from the State Bank of India.

The Division Bank of Justice Vipin Sanghi and Justice Rajneesh Bhatnagar has issued notice to the State Bank of India, and the Union of India, while asking both the parties to submit brief written submissions on this issue before the next date of hearing.

The application was moved by Ambani in light of the development whereby some Chinese banks have approached the courts in the United Kingdom against the assets of Ambani.

Appearing for Anil Ambani, Senior Advocate Harish Salve argued that these Chinese banks must be made a party before this court so that their response can be sought on the proceedings that are pending before the UK courts.

'We don't want an order to be passed by a court in the UK the execution of which amounts to a contempt of this court', Mr Salve argued.

In addition to this, Senior Advocate Neeraj Kishan Kaul, who was representing SBI, informed the court that the interim moratorium under section 96 of the Insolvency and Bankruptcy Code must stay in force as an application under section 95 has been moved against Ambani before the NCLT.

In the last hearing, the court had restricted Anil Ambani from alienating his assets for an interim period which was further extended today till the next date of hearing.

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.

Ambani is aggrieved by the order passed by the National Company Law Tribunal on August 20 wherein it is stated that:

'there is no doubt that Ambani furnished his personal guarantee for the credit facility availed by RCom and RITL… The authority accordingly has no other option than to issue the direction.'

Ambani had given a personal guarantee for the loans taken by RCOM and RITL in tune of Rs 1195 crore from the State Bank of India. In 2017, the said firms defaulted on payment which resulted in their loan accounts being declared as Non Performing Assets (NPA).

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.

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