Anil Ambani Case: HC sends Notice to Chinese Banks

The Delhi High Court has issued notice to three state-owned Chinese banks — Industrial and Commercial Bank of China, China Development Bank and Exim Bank of China — on an application for impleadment in the case related to invoking personal guarantees of Anil Ambani.

Ambani had approached the Delhi court after the SBI moved to invoke alleged personal guarantees given by him for loans taken by Reliance Communications.

Separately, the three Chinese banks had also filed a suit in a UK court against Ambani for recovering more than $700 million. The UK court had ruled in favour of the Chinese banks.

Ambani then asked the Delhi court to implead the three Chinese banks with the ongoing case against SBI.

A spokesperson for Ambani said: “...the Delhi High Court inter alia passed the following orders: SBI’s application for interim moratorium under Section 96 of the IBC to continue was accepted, thereby protecting SBI’s interests; since SBI had based its application to continue the moratorium on the basis that the three Chinese banks may attempt to enforce a UK court order, the Division Bench issued notice on the application for impleadment of the three banks in the proceedings before the Delhi High Court.”

The High Court has fixed the cases for hearing on November 10, allowing all parties to complete pleadings. The Chinese banks had sought action against Ambani over an alleged breach of a personal guarantee on a debt refinancing loan of about $925 million that was due to mature in March 2012.