Sterling Biotech: NCLT sees violation of norms
Mumbai, March 28
The National Company Law Tribunal (NCLT) in the Sterling Biotech case for the second time has questioned the motive of lenders, led by Andhra Bank, to withdraw their bankruptcy application and to choose a one-time settlement with the absconding promoters of Sterling Biotech.
The tribunal has also questioned the source of funds which the lenders of the defaulting company have agreed to accept as the one-time settlement (OTS) on behalf of the promoter. The four promoters of the group — Nitin Jayantilal Sandesara, Chetankumar Sandesara, Dipti Chetan Sandesara and Hiteshkumar Patel — are currently absconding and facing extradition orders.
Sec 29(A) of the Insolvency and Bankruptcy Code (IBC) bars re-entry of the promoter in the resolution scene in any form.
This is the second time the appellate tribunal has questioned the motive of banks that have accepted an OTS offered by promoters — Nitin Jayantilal Sandesara and family. They have offered Rs 3,100 crore of repayments by June 2019. — PTI
Questions motive of lenders
For the second time, the tribunal has questioned the motive of lenders, led by Andhra Bank, to withdraw their bankruptcy application and to choose a one-time settlement (OTS) with the absconding promoters of Sterling Biotech
