New Delhi, June 11 (IANS) The National Company Law Tribunal (NCLT) on Thursday admitted a plea filed by the State Bank of India (SBI) and initiated personal insolvency resolution proceedings against industrialist Anil Ambani in his capacity as a personal guarantor for loans extended to Reliance Communications (RCOM) and Reliance Infratel Ltd (RITL).
A bench of Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar passed the order while admitting the SBI's application filed under Section 95 of the Insolvency and Bankruptcy Code (IBC).
The Mumbai Bench-I of the NCLT also declared a moratorium on all debts of the personal guarantor and directed Resolution Professional Prashant Jain to issue a public notice inviting claims from creditors.
Reacting to the decision, a spokesperson for Ambani said that the order, once available, will be reviewed by his legal team and challenged through appropriate legal remedies, as advised.
The SBI had moved the NCLT seeking initiation of insolvency proceedings against Ambani over an alleged default of Rs 853.25 crore arising from personal guarantees furnished for credit facilities extended to RCOM and RITL.
According to SBI, Ambani had executed a personal guarantee deed on September 23, 2016, in respect of loan facilities of Rs 565 crore granted to RCOM and Rs 635 crore granted to RITL. The lender invoked the guarantee on January 31, 2019, after defaults by the borrower companies and subsequently approached the NCLT in March 2020 after no repayment was received.
During the proceedings, Ambani challenged the insolvency action, contending that the guarantee stood discharged following approval of the resolution plan for RCOM and that no enforceable liability survived against him.
He also argued that the guarantee was invalid because it was executed after the loan accounts had allegedly become non-performing assets (NPAs).
Rejecting these contentions, the NCLT held that the Resolution Professional's report recommending admission of the insolvency application was valid and that the issues raised by Ambani could not undermine the existence of debt and default.
"We do not find any merit in the contention of the Personal Guarantor that he executed a guarantee on 23.09.2016 in favour of applicant creditor, when the principal borrower was already in default on 26.8.2016," the tribunal said.
It further observed that no money had yet been realised by the SBI under the approved resolution plans of RCOM and RITL and that the debt continued to remain unpaid.
Admitting the SBI's petition, the NCLT ordered that the insolvency resolution process against Ambani be commenced and that the moratorium would remain in force for 180 days or until an order is passed on a repayment plan, whichever is earlier. During this period, all pending legal proceedings in respect of the debt will remain stayed, and Ambani will be barred from transferring, alienating, encumbering or disposing of his assets.
The NCLT also directed Jain to issue a public notice inviting claims from creditors and carry out the insolvency resolution process in accordance with the provisions of the IBC.
In a statement, Ambai's spokesman said that the "Order dated 11 June 2026, passed by the NCLT, Mumbai, relates to a disputed personal guarantee allegedly extended by Mr Ambani to the State Bank of India in 2016 — that is, ten years ago — even before the promulgation of personal insolvency laws".
"The underlying facility had been availed by Reliance Communications for the repayment of its borrowings from Chinese lenders, and Mr Ambani derived no personal benefit from the said funds. The Order, once available, will be reviewed by Mr Ambani’s legal team and challenged through appropriate legal remedies, as advised. Mr Ambani remains confident of vindicating his position before the appropriate forums," the spokesman added.
--IANS
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