InvestorQ : What is the latest in the legal dispute between SBI and RCOM?
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What is the latest in the legal dispute between SBI and RCOM?

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3 months ago
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Anil Ambani of the ADAG group has moved the Delhi High Court objecting to appointment of Resolution Professional with reference to a personal bankruptcy petition filed against him by SBI. The bank is trying to invoke personal guarantees given by Anil Ambani for loans.

Ambani has challenged the validity of the appointment of RP as per SBI and sought to know whether there was any enabling provision in the Insolvency Bankruptcy Code that could justify such an order. The matter is yet to be decided although NCLT has asked for RP.

Anil Ambani had given personal guarantees while securing the loan of Rs.1195 crore to RCOM and RITL in 2016. Both the ADAG group companies defaulted in January 2017 which resulted in the account being declared as NPA. SBI is now seeking to invoke the guarantee.

NCLT order states that there was no doubt that Anil Ambani had furnished personal guarantee for the credit facility availed by RCOM and RITL. As a result, NCLT has appointed

Jitender Kothari as the RP for the case.

Anil Ambani’s latest petition in the High Court challenges the validity of the appointment of RP as there are no enabling provisions in the IBC that can lead to passing such an order. The other similar personal guarantee case may be used as a precedent.

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