NCLAT Issues Notice to Ambuja Cements Over Alok Sanghi's Insolvency Plea
In response to a lawsuit submitted by Alok Sanghi, the previous promoter of Sanghi Industries, which Ambuja purchased in 2023, the NCLAT has sent a notice to Ambuja Cements, an Adani Group company.
The Ahmedabad bench of the NCLT had ordered the beginning of insolvency proceedings against Alok Sanghi; however, the appellate tribunal stopped this order on Tuesday, stating that "no further steps shall be taken in pursuance of the impugned order."
Ambuja Cements was given two weeks by the National Company Law Appellate Tribunal (NCLAT) to list the case on April 14, 2025.
In a case under Section 95 of the IBC filed by Ambuja Cements over his personal guarantee of Rs.84 crore, Alok Sanghi had petitioned the NCLAT against a ruling issued by the National Company Law Tribunal (NCLT) on February 25, 2025.
An expert in interim resolution has already been designated by the NCLT.
In his appeal, Sanghi claimed that the share purchase agreement dated August 3, 2023, which solely included warranty and indemnification, made no reference to any personal guarantee he had provided in the application submitted by Ambuja Cements.
Creditors may initiate insolvency procedures against debtors, including partnership firms and personal guarantors, in accordance with Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016.
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Sanghi's attorney also argued that NCLT had already adjudiced the parties' conflicting arguments regarding the basis of the share purchase agreement at the date of the resolution professional's appointment.