Home / News / India /  SBI moves SC to vacate stay on Anil Ambani bankruptcy proceedings

NEW DELHI: The State Bank of India (SBI) has moved the Supreme Court seeking a vacation of the stay granted by Delhi High Court on the personal bankruptcy proceedings against Anil Ambani, chairman of Reliance Group.

On 27 August, the high court’s division bench of Justice Vipin Sanghi and Justice Rajnish Bhatnagar passed an interim order staying the Mumbai bankruptcy tribunal's order. The bench said proceedings against the corporate debtors will continue and issued notice to the central government, SBI and others. The bench also restrained Ambani from selling or transferring any of his personal assets.

The matter will be heard next by the high court on 6 October.

The SBI, in its petition before the apex court last week, submitted that the high court did not grant the bank an opportunity to file a counter affidavit and was not justified in passing an interim order staying insolvency proceedings against Ambani “who owes to the Bank public money to the tune of 1707 crores".

The plea also argued that the high court was not justified in entertaining the writ petition when the territorial jurisdiction was in Mumbai as the demand notices were issued by the bank in Mumbai; insolvency proceedings were filed before the NCLT, Mumbai bench; the writ petitioner (Ambani) resides in Mumbai and the petitioner bank (SBI) has its headquarters and corporate office in Mumbai.

SBI submits in its petition that great prejudice and irreparable damage would be caused to the petitioner if the impugned judgment of the high court is brought into effect. The bank prayed for an “ad-interim ex-parte" stay order on the 27 August interim order passed by the high court.

On 26 August, Ambani had moved the Delhi high court against the appointment of a resolution professional (RP) on personal guarantees given to SBI for securing corporate loans. Ambani had challenged the validity of the section pertaining to personal guarantee and asked if there is any enabling provision in the Insolvency Bankruptcy Code (IBC) for such an order.

In March, SBI had filed a petition in the Mumbai bench of the National Company Law Tribunal (NCLT) under section 95 of IBC for personal bankruptcy based on guarantees issued by Ambani. NCLT had appointed Jitender Kothari as a resolution professional (RP).

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