An application to initiate insolvency proceedings against Anil Ambani, chairman of the Reliance Anil Dhirubhai Ambani Group, had been filed by the Project Finance Strategic Business Unit of State Bank of India under Part III of the Insolvency and Bankruptcy Code, 2016.
Anil Ambani had acted as the Personal guarantor for Reliance Communications Limited (RCOM) and Reliance Infratel Limited (RITL) in obtaining credit facilities of Rs. 565 crores and Rs. 635 crores respectively.
The loan facilities were provided by a financial creditor to enable the companies to repay existing financial indebtedness. However, the accounts were later declared as Non-Performing Assets as on August 16, 2016.
In January 2018, the Financial creditor apprehended the non-possibility of recovering the credit facilities through the Corporate Insolvency Resolution Process (CIRP) The personal guarantee agreement was then invoked.
Responding to the application, Anil Ambani submitted that Resolution Plans for both the Corporate Debtors were in process under the CIRP. He also stated that once the plans are approved, all dues would be discharged subsequently.
The National Company Law Tribunal observed that the proceedings can be initiated even if the plans are pending and there is no urgency in the case. However since the assurance by the personal guarantor was not in dispute, Jitender Kothari has been appointed as the Resolution Professional under section 97(4) of the IBC read along with Rule 8 of the IBC rules, 2019.
Janab Mohammed Ajmal and Ravikumar Duraisam had passed the order.