The Mumbai Bench of the National Company Law Tribunal (NCLT) has granted approval for State Bank of India’s (SBI) request to commence personal insolvency proceedings against Anil Ambani, Chairman of the Reliance Group. This decision was delivered by a bench comprising Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar.
The tribunal’s order initiates an insolvency resolution process against Ambani, implementing a 180-day moratorium on all debts or until a repayment plan is finalized. Additionally, the NCLT instructed Resolution Professional (RP) Prashant Jain to issue a public notice within seven days, seeking claims from all creditors within a 21-day period.
SBI’s claim against Ambani totals approximately ₹1,200 crore and originates from credit facilities extended to Reliance Communications and Reliance Infratel in 2016. Reliance Communications had sought ₹565 crore for existing debt repayment, while Reliance Infratel requested ₹635 crore. These facilities were sanctioned under rupee loan agreements dated August 29, 2016, and subsequently amended on September 8, 2016. Ambani provided personal guarantee deeds to SBI on September 23, 2016, for these loans.
Defaults on these repayments occurred around January 2017, with accounts retrospectively classified as non-performing assets (NPAs) from August 26, 2016. In 2018, the NCLT admitted insolvency petitions by Ericsson India Private Limited against both Reliance Communications and Reliance Infratel. Following these defaults, SBI invoked Ambani’s personal guarantee on January 31, 2018, and issued a demand notice in February 2020, citing unpaid amounts.
In March 2020, SBI petitioned the NCLT under Section 95 of the Insolvency and Bankruptcy Code (IBC) to initiate insolvency proceedings against Ambani. By August 2020, the NCLT had appointed Jitender Kothari as the resolution professional under Section 97 of the IBC.
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Ambani contested the validity of the personal guarantee, arguing it was invalid due to its execution after the retrospective NPA classification date. The NCLT dismissed this argument, affirming that the retrospective NPA classification under Reserve Bank of India norms does not invalidate the guarantee. Furthermore, the tribunal rejected Ambani’s claim that SBI’s rights to enforce the personal guarantee were nullified following the approval of the Reliance Communications resolution plan, noting that such plans preserved lenders’ rights to enforce personal guarantees and third-party securities.
Representing SBI were Senior Advocate Zal Andhyarujina, with Advocates Nirav Shah, Jash Shah, Astha Ojha, and Prateek Kumar, instructed by DSK Legal. Resolution Professional Prashant Jain was represented by Senior Advocate Chetan Kapadia, along with Advocates Shlok Parekh, Rohan Agarwal, and Anuya Pathare. Ambani’s representation included Senior Advocate Prateek Seksaria, alongside DJ Kakalia, Rohit Gupta, and Ragini Sharma.
