Debt

Debt financing

DRT dismisses SBI's plea against Ruias in Essar Steel personal guarantee case

Economic Times  

The Debt Recovery Tribunal (DRT) has dismissed State Bank of India's five-year-old plea seeking to invoke a personal guarantee extended by Prashant Ruia and his uncle Ravi Ruia for a loan taken by Essar Steel India Ltd (ESIL). The Ahmedabad bench of the DRT has observed that in the absence of any subsisting underlying debt due from ESIL, secured financial creditors cannot in law trigger personal guarantees.