# In the matter of State Bank of India Vs. Anil Dhirajlal Ambani in IA No. 1009 of 2020 in CP(IB) 916 (MB) of 2020 & IA No. 1010 of 2020 in CP(IB) 917 (MB) of 2020

> NCLT judgment dated 2020-08-20. Citation: TCN-2020-NCLT-00811. The State Bank of India (SBI) filed applications against Anil Dhirajlal Ambani, the personal…

- **Court:** NCLT
- **Order date:** 20 Aug 2020
- **Citation:** TCN-2020-NCLT-00811
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/state-bank-of-india-vs-anil-dhirajlal-ambani-in-ia-no-1009-of-2020-in-cp-66945d92

## Summary

### Background

The State Bank of India (SBI) filed applications against Anil Dhirajlal Ambani, the personal guarantor of corporate debtors Reliance Communications Limited (RCOM) and Reliance Infratel Limited (RITL), seeking urgent hearing and orders under Section 97(3) of the Insolvency and Bankruptcy Code (IBC), 2016. RCOM and RITL had approached SBI for credit facilities, which were granted under a Rupee Loan Facilities Agreement. Anil Ambani provided a personal guarantee for these facilities. Both RCOM and RITL defaulted on repayments, leading to their accounts being declared Non-Performing Assets (NPA). Subsequently, Corporate Insolvency Resolution Processes (CIRP) were initiated against RITL and RCOM. SBI invoked the personal guarantee and issued a demand notice to Anil Ambani,

…

## Facts

In 2015-2016, Reliance Communications Limited (RCOM) and Reliance Infratel Limited (RITL) sought credit facilities from State Bank of India (SBI). RCOM requested Rs. 565 crore, and RITL requested Rs. 635 crore. Anil Dhirajlal Ambani, as Chairman of the Reliance ADA Group, provided a personal guarantee under a Personal Guarantee Deed dated 23.09.2016 for the credit facilities. Both RCOM and RITL defaulted on repayments around January 2017, and their accounts were declared Non-Performing Assets (NPA) with effect from 26.08.2016. Ericsson India Private Limited initiated Corporate Insolvency Resolution Process (CIRP) against RITL (CP No. 1385 of 2017) and RCOM (CP No. 1387 of 2017). SBI invoked the personal guarantee on 31.01.2018 and issued a demand notice to Anil Ambani.

…

## Issues and analysis

### Issue 1: Whether the applications filed by the Financial Creditor against the Personal Guarantor are …

**Ratio:** Section 60(2) of the IBC allows for simultaneous proceedings against personal guarantors

…

**Reasoning:** The NCLT reasoned that the pendency of resolution plans for the corporate debtors does

…

**Interpretation:** Section 60(2) is interpreted to mean that the insolvency resolution process of

…

**Application:** The NCLT applied this ratio to the facts by holding that SBI's applications

…

## Parties

- **Judges:** Janab Mohammed…; Ravikumar…; +1 more
- **Appellants:** State Bank of…
- **Respondents:** Reliance Communica…; Anil Dhirajlal…

## Timeline

- **2016-08-26 — Accounts decl…**: Accounts of RCOM and RITL were retrospectively…
- **2017-01-01 — Default in Re…**: RCOM and RITL committed defaults in…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95 — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/state-bank-of-india-vs-anil-dhirajlal-ambani-in-ia-no-1009-of-2020-in-cp-66945d92