Delhi HC stays insolvency case against Anil Ambani

The Delhi High Court on Thursday stayed bankruptcy proceedings against Anil Ambani in a case where he had furnished personal guarantee for loans extended to Reliance Communications (RCom) and Reliance Infratel.

A Division Bench of Justices Vipin Sanghi and Rajnish Bhatnagar also restrained Ambani from transferring, encumbering or dealing or disposing of any of his assets or his rights or beneficial interest till the next date of hearing, October 6.

The proceedings against the petitioner under Part-III of the IBC (Individual Insolvency) shall remain stayed, the Delhi High Court order said.

The court also made it clear that proceedings will continue against the corporate debtor. Notices have been issued to the Centre, SBI and others in the case.

It may be recalled that Ambani had, on Wednesday, moved the Delhi High Court against the appointment of a resolution professional on the personal guarantees given to SBI for securing loans to RCom and Reliance Infratel.

Ambani’s plea

In his plea, Ambani challenged the validity of the section pertaining to personal guarantee and questioned if there was any enabling provision in IBC for such an order.

The case relates to loans amounting to ₹1,195 crore, extended in 2016, for which Ambani extended his personal guarantee. The two Reliance entities defaulted in January 2017 and the accounts have been categorised as non performing assets.

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