NCLT Appoints New RP in Anil Ambani’s ₹1,385 Crore Personal Guarantee Dispute

According to a report of The Times of India, the National Company Law Tribunal has reassigned the resolution professional in Anil Ambani’s insolvency case related to a ₹1,385 crore personal guarantee for a loan to Reliance Communications, highlighting the need for procedural fairness amid pandemic-related hurdles.

Change of RP Amid Contentious Case Proceedings

On July 15, 2025, NCLT issued an order appointing Prashant Jain as the new resolution professional (RP) in place of Jitender Kothari. This development came during the ongoing insolvency case concerning a personal guarantee Anil Ambani provided in support of a ₹1,385 crore loan granted by SBI to Reliance Communications in 2016. The SBI had declared the loan a non-performing asset by the end of August that year.

COVID-19 Delays Impacted Information Sharing

Kothari, who took over as RP in August 2020, initiated multiple information requests from Ambani. However, Ambani's legal team cited that COVID-19 travel restrictions hindered timely responses. The court found merit in the claim that the RP moved quickly without awaiting a pending application related to deadline relaxation, affecting Ambani’s ability to share crucial details, particularly related to overseas litigation.

Maintaining Coordination Key to Insolvency Process

In its observations, NCLT noted there was no misconduct or explicit bias by the previous RP. However, it emphasised that an insolvency resolution process must operate in close coordination between the debtor and the RP. The court concluded that given the extraordinary circumstances of the pandemic, fairness demanded a more collaborative approach.

Background of Legal Challenges and RP's Role

The case had already seen involvement of the Delhi High Court and the Supreme Court due to disputes over the RP's authority to request certain documents. Ambani’s team contended that the RP exceeded his mandate, further complicating proceedings. While SBI supported Kothari's actions, citing delay in resolution, NCLT has now ensured a more neutral transition by introducing a new RP.

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Conclusion

The NCLT’s decision to replace the RP in Anil Ambani’s personal guarantee dispute underscores the critical importance of procedural fairness, especially when external factors like a pandemic impede standard processes. With Prashant Jain now appointed, the focus shifts back to a smooth and unbiased resolution.

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