The Delhi High Court on Thursday stayed the Insolvency Resolution Procedure (IRP) against Reliance Communications (RCom) chairman Anil Ambani. This insolvency process was initiated in connection with the recovery of Rs 1,200 crore loan given by SBI to his two firms. Also Read – Court denies hearing on petition against sending Rs 15 crore in PM Cares
Ambani had given personal guarantees for loans of Rs 565 crore and Rs 635 crore given by State Bank of India (SBI) to RCom and Reliance Infratel Limited (RITL). Also Read – CTET pass candidate will get benefit in DSSSB, LG given 10 years relaxation in appointment of special teachers
A bench of Justices Vipin Sanghi and Justice Rajneesh Bhatnagar, withholding IRP under the Insolvency and Bankruptcy Disability Act (IBC) as well as transferring its assets or legal rights and interests on Ambani till the next hearing, lending, lending or selling to someone Banned. Result DU for students going abroad for Also Read – Higher Studies announced soon: High Court
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 on it before October 6. The next hearing of this case is to be held on October 6.
The court also said that the action in respect of corporate debtors (companies) will continue, 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) will be stopped under Part I of the IBC.”
The National Company Law Tribunal (NCLT), in its order dated 20 August, had asked to initiate the insolvency process against Ambani.
NCLT said that both Reliance Communications and Reliance Infratel failed to repay the loan installments. The NCLT ordered the appointment of a solution professional and asked SBI to take necessary action.