HC seeks Centre, SBI stand on Atul Punj plea against IRP regulations on personal guarantors

New Delhi: The Delhi High Court on Wednesday sought response of the Centre, SBI and insolvency board IBBI on a plea by Punj Lloyd founder Atul Punj challenging the constitutionality of the regulations regarding insolvency resolution process (IRP) against personal guarantors. A bench of Chief Justice D N Patel and Justice Prateek Jalan issued notice to the Centre, State Bank of India and the Insolvency and Bankruptcy Board of India (IBBI) seeking their stand on the petition moved by Punj.

The court also issued notice in a similar petition moved by Punj in which L and T Infrastructure Finance is a party instead of SBI.

In the second petition also he has challenged the constitutionality of the IBBI (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019.

While issuing notice, the bench declined to grant any interim relief to Punj as was recently granted to Reliance Communications (RCom) Chairman Anil Ambani by another bench in a similar plea.

The other bench had on August 27 put on hold the put on hold the IRP proceedings against Ambani in relation to recovery of Rs 1,200 crore loans given by SBI to two of his companies.

It had also restrained Ambani from "transferring, alienating, encumbering or disposing of his assets or legal rights and interests therein till the next date of hearing".