NCLT replaces RP in Anil Ambani personal guarantee case
National Company Law Tribunal
(
NCLT
) has replaced
Jitender Kothari
with
Prashant Jain
as the resolution professional (RP) in the
insolvency case
linked to
Anil Ambani
's
personal guarantee
for a ₹1,385-crore loan extended by
SBI
to
Reliance Communications
,
Times of India
.
According to the report, Ambani had extended the guarantee in September 2016, which was retrospectively tagged as a non-performing asset from late August that year. Kothari was appointed RP in August 2020 and subsequently sought information from Ambani, including details of proceedings in a UK court.
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The process triggered multiple legal challenges, including cases before the Delhi High Court and the Supreme Court. In May 2021, Kothari filed a report recommending admission of the insolvency plea, even as Ambani's counsel had requested additional time citing Covid-related travel restrictions.
Soon after, Ambani's legal team argued that the RP was only entitled to seek information from SBI and accused him of seeking unrelated data.
Ambani claimed that the RP was 'acting in undue haste and denying him fair and proper opportunity' to furnish information. The RP rejected these allegations. SBI, meanwhile, backed Kothari and said the prolonged pendency of the matter before the NCLT was delaying the resolution.
Live Events
In its July 15 order, as per TOI, the NCLT said, 'In light of Covid-related disruptions, Ambani should have been given a fair opportunity to provide information to the resolution professional.'
It noted that 'the RP didn't even wait for adjudication of his application pending before this Tribunal seeking relaxation of 10 days' timeline and a cross application of the applicant before this Tribunal requiring more time in view of Covid restrictions.'
While ruling out any misconduct, the bench said, 'Though, we do not find any negligence or explicit bias on part of the RP in this case, however, we are of considered view since the insolvency resolution process after commencement has to be run in close coordination of debtor and RP.'
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