SC dismisses SBI plea on Anil Ambani bankruptcy case

The Supreme Court (SC) on Thursday dismissed State Bank of India’s (SBI) plea seeking vacation of stay by Delhi High Court on personal insolvency and bankruptcy proceedings against Anil Ambani. The apex court further directed HC to consider the issue on October 6, adding that SBI is at liberty to seek modification of stay order.

Earlier this month SBI moved SC to recover dues worth around Rs 1,200 crore from Anil Ambani by invoking his personal guarantee after he got a stay from Delhi HC against such a move. Lenders have keenly tracked the outcome of this petition as it is one of the first cases of insolvency against the head of a major business group and is the first case where personal guarantees of a promoter have been invoked.

Ambani had personally guaranteed loans taken by Reliance Communications (RCom) that are currently undergoing bankruptcy resolution, according to the lender. In 2015, RCom and Reliance Infratel approached the Project Finance Strategic Business Unit of SBI seeking two loans of Rs 565 crore and Rs 635 crore, respectively. Business Insider