NCLT APPOINTS RP TO RESOLVE SBI CASE AGAINST ANIL AMBANI

nMUMBAI: The Mumbai bench of the National Company Law Tribunal (NCLT) has appointed a resolution professional to look into State Bank of India’s (SBI’S) petition seeking to recover loans from Anil Ambani, which he had stood guarantee for.

The case pertains to Ambani, chairman of the Reliance Group, personally guaranteeing loans worth ₹1,200 crore raised by Reliance Communications Ltd (Rcom) and Reliance Infratel Ltd, which later turned non-performing.

A spokesperson for Ambani on Friday said that the order does not constitute an admission of State Bank of India’s insolvency application by the NCLT.

The spokesperson said that Ambani is reviewing the order and is taking advice on filing an appropriate appeal before the National Company Law Appellate Tribunal.

“The NCLT has declined SBI’S request for a restriction on Ambani from dealing or appropriating his assets, to the prejudice of the interest of SBI,” the spokesperson added.

SBI had filed the insolvency application against Ambani before the nationwide Covid-19 lockdown began in end-march.

It was filed under Section 95 of the Insolvency and Bankruptcy Code. Whenever such a petition is filed, the tribunal has to direct the Insolvency and Bankruptcy Board of India (IBBI) to nominate a resolution professional (RP) within seven days. Since the IBBI has already shared a panel of insolvency professionals, the tribunal appointed an RP from the pool. “The authority accordingly has no other option than to issue the direction,” the August 20 NCLT order said. It appointed Jitender Kothari as the RP. He will now have to go through SBI’S application and submit his report to the NCLT within 10 days, stating reasons for acceptance or rejection of the petition, said Ashish Pyasi, associate partner, Dhir & Dhir Associates.