Question : Sbi – Rcom(Reliance Communications) loan recovery matter is related to –
(A) personal guarantee clause
(B) bankruptcy law
(C) both (A) and (B)
(D) none of the above
Answer (c )
Related facts
- Sbi on june, moved the insolvency court (NCLT) to recover more than Rs 1,200 crore from Anil Ambani under the personal guarantee clause of the bankruptcy law.
- SBI moved the National Company Law Tribunal (NCLT) under Section 97(3) of Insolvency and Bankruptcy Code (IBC), seeking its intervention to direct the insolvency board to nominate a resolution professional (RP).
- The bank is aimed to recover a sizeable amount from the personal guarantees made by Anil Ambani on loans to Reliance Communications.
- This matter is related to personal guarantee clause of the bankruptcy law .
- The State Bank of India board had approved a resolution plan for Reliance Communications in March that envisaged lenders recovering around Rs 23,000 crore of their money, entailing a haircut of nearly 50%.
- RCom owes nearly Rs 5,000 crore to SBI.
The Insolvency and Bankruptcy Code
- Once the personal guarantee clause under the IBC is invoked, individuals are granted a moratorium of six months during which no fresh claims can be made with respect to corporate entities in which they are promoters.