The Delhi High Court on Thursday stayed Insolvency and Bankruptcy Code proceedings against industrialist Anil Ambani in connection with a guarantee given by him to the State Bank of India in 2016, against its loans to Reliance Communications and Reliance Infratel, Live Law reported.
The loan accounts of Reliance Communications and Reliance Infratel had been declared non-performing assets in 2017 after they failed to pay off the debt.
The court’s order came after Ambani filed a petition challenging the appointment of a Resolution Professional by the National Company Law Tribunal to verify whether or not he had given SBI a personal guarantee of Rs 1,200 crore against its loans to Reliance Communications and Reliance Infratel.
Ambani also challenged the validity of the provision related to personal guarantee and bankruptcy and asked whether there was a provision under the Insolvency and Bankruptcy Code for such an order.
The Delhi High court, meanwhile, directed Ambani to not sell off or transfer his assets till the next date of hearing on October 6.
Last week, the National Company Law Tribunal had ordered insolvency proceedings against Ambani for defaulting on the loans.
SBI had in March filed a petition before the National Company Law Tribunal’s Mumbai bench under Section 95 of the Insolvency and Bankruptcy Code. The petition mandated that the tribunal appoint a Resolution Professional within seven days to look into the case.