The State Bank of India (SBI) has filed a petition with the Supreme Court which will be heard from today. The SBI has invoked the personal guarantees by Anil Ambani under the Corporate Debtors Regulations, 2019. Anil Ambani has however objected to the SBI invoking personal guarantees under the Corporate Debtors Regulations, 2019.Earlier, the Insolvency and Bankruptcy Code (IBC) covered...
The State Bank of India (SBI) has filed a petition with the Supreme Court which will be heard from today. The SBI has invoked the personal guarantees by Anil Ambani under the Corporate Debtors Regulations, 2019. Anil Ambani has however objected to the SBI invoking personal guarantees under the Corporate Debtors Regulations, 2019.
Earlier, the Insolvency and Bankruptcy Code (IBC) covered Indian companies and not promoters. However, the new rules apply against the personal guarantors given to loans above Rs. 1,000 crore or more by promoters. Sources say that as Ambani’s will be the first case where personal guarantees have been invoked and is now in the Supreme Court, the outcome will decide the fate of 40 other top defaulters who were sent to the National Company Law Tribunal (NCLT) since IBC law came into effect.
The petition to the Top Court by SBI said that several promoters have moved the Delhi High Court after their personal guarantees have been invoked.
Earlier this month, the SBI had invoked the personal guarantees of Sanjay Singal, promoter of Bhushan Power & Steel, as the company defaulted to loans worth Rs. 48,000 crore.