SC transfers all pleas against lenders invoking personal guarantees by promoters to itself
It has also directed that High Courts will not entertain any new petitions in this regard
October 29, 2020 / 01:38 PM IST
The Supreme Court of India (SC) has agreed to transfer to itself all pleas against lenders invoking personal guarantees by promoters. It will hear the case on December 2, 2020.
The apex court on October 29 said the interim order (issued by the Delhi High Court) staying Insolvency and Bankruptcy (IBC) proceedings against guarantors will continue. It has also directed that High Courts will not entertain any new petitions in this regard.
The Insolvency and Bankruptcy Board of India (IBBI) had moved the SC seeking transfer of the HC cases. It had argued that these cases are spread across the Delhi HC, Madhya Pradesh HC, and Telangana HC.
Promoters and guarantors such as Anil Ambani had moved Delhi HC against lenders invoking personal insolvency and bankruptcy proceedings. To which the Delhi HC in August had stayed proceedings against promoters, guarantors.
Banks such as the State Bank of India (SBI) alone had prepared a list of 40 plus such promoters where notices have been sent/in the process of being sent. The list includes including Anil Ambani, Venugopal Dhoot and Kapil Wadhawan.
This is a developing story. Please check back later for more details.