Prudeta
Prudeta
2026 INSC 423
📌 Paras 1-6
The State Bank of India (SBI) Consortium, comprising several banks, appealed an NCLAT order affirming an NCLT decision. The appeal concerned the validity and enforceability of corporate guarantees issued by Reliance Infratel Limited (RITL), the Corporate Debtor (CD), in favour of the SBI Consortium. These guarantees secured loans extended by the consortium to RCOM and RTL. RITL's account was declared a Non-Performing Asset (NPA) in August 2016, with subsequent reinstatement agreements and a further NPA declaration in December 2017. Corporate Insolvency Resolution Process (CIRP) was initiated against RITL in May 2018.
📌 Para 2
The core issue was the validity and enforceability of corporate guarantees within the Insolvency
The bench further analyzed the constitutional validity of the impugned provisions and discussed the interpretation of Articles 14 and 21 in light of recent precedents...
Citing the ratio in prior decisions, the court held that the legislative intent was to ensure...
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