NEW DELHI: Anil Ambani has been given a reprieve by the Delhi High Court, which on Thursday put on hold the personal insolvency resolution process (IRP) proceedings initated against against him in relation to the recovery of two loans from SBI worth Rs 1,200 crore.
According to the bank, which moved the bankruptcy court earlier this month, Ambani had given personal guarantees for two loans worth Rs 565 crore and Rs 635 crore extended to his companies RCom and Reliance Infratel Ltd (RITL) respectively, in August 2016.
On Thursday, the bench comprising Justices Vipin Sanghi and Rajnish Bhatnagar of the Delhi High Court stayed the IRP, but also restrained Ambani from “transferring, alienating, encumbering or disposing of his assets or legal rights and interests therein till the next date of hearing”.
Meanwhile, the High Court issued notices to the Centre, the Insolvency and Bankruptcy Board of India (IBBI) and the State Bank of India seeking their stand by October 6, when the case is to come up for hearing next. The court said that these proceedings would continue in relation to the corporate debtor (the companies), and the liability of the petitioner-personal guarantor may also be examined by the IRP at that time. “However, proceedings... under Part 3 of the IBC shall remain stayed,” it said. Ambani in his plea has challenged the constitutionality of the relevant regulations which had been passed by the Government last year.