Mumbai: The National Company Law Tribunal has ordered liquidation of Sterling Biotech Ltd as a going concern. It also rejected Andhra Bank’s plea to withdraw the company from the insolvency process after the promoter, Sandesara family, offered a one-time settlement. The tribunal held that the offer made by the promoter amounts to a resolution plan and not a settlement, as Sandesara family was willing to make only part payment and take over management control of the company.
Under the Insolvency and Bankruptcy Code, 2016, a wilful defaulters are barred from submitting resolution plans.
The tribunal also observed that although lenders were interested in recovering money, they did not provide the details of sources of funds of the promoter, while accepting the offer. This becomes important when promoters are facing several criminal cases and are reportedly absconding, the tribunal said.
NCLT orders liquidation of Sterling Biotech
