- Home
- /
- Top Stories
- /
- Anil Ambani Moves Supreme Court...
Anil Ambani Moves Supreme Court Challenging Validity Of IBC Provisions Relating To Personal Guarantors
Rintu Mariam Biju
1 Aug 2022 7:36 PM IST
A prominent face in Indian Business, Anil Ambani has moved the Supreme Court challenging the validity of certain provisions of Part III (Insolvency Resolution and Bankruptcy for Individuals and Partnership Firms) of the Insolvency and Bankruptcy Code, 2016 pertaining to Personal Guarantors of a Corporate Debtor.The petition has challenged sections 95 (Application by creditor to...
A prominent face in Indian Business, Anil Ambani has moved the Supreme Court challenging the validity of certain provisions of Part III (Insolvency Resolution and Bankruptcy for Individuals and Partnership Firms) of the Insolvency and Bankruptcy Code, 2016 pertaining to Personal Guarantors of a Corporate Debtor.
- Interim moratorium under Section 96 is ordered against the personal guarantor as soon as Section 95 application is filed, without any application of mind.
- There is mechanism to verify if the creditor has already approached the DRT or invoked SARFAESI proceedings and without such verification, proceedings are taken against personal guarantor.
- No opportunity of hearing is afforded to the guarantor before the admission of application.
- The procedure can lead to forum shopping.
Case : Anil Dhirajlal Ambani vs Union of India |WP(c) 519/22