# In the matter of Andhra Bank Vs. Sterling Biotech Ltd. (through the Liquidator) & Ors. IA No. 2787-2019 in CA(AT)(Insolvency)No. 612-2019

> NCLAT judgment dated 2019-09-23. Citation: TCN-2019-NCLAT-00256. The case involves an appeal regarding insolvency proceedings. Submissions have been made by…

- **Court:** NCLAT
- **Order date:** 23 Sept 2019
- **Citation:** TCN-2019-NCLAT-00256
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/andhra-bank-vs-sterling-biotech-ltd-07de1f51

## Summary

### Background

The case involves an appeal regarding insolvency proceedings. Submissions have been made by counsels for the Enforcement Directorate and bond-holders. The court is addressing issues related to the 'Terms of Settlement', 'Know Your Customer' (KYC) compliance, and the continuance of the 'Resolution Professional' or 'Liquidator' for clarification purposes.

## Facts

Andhra Bank filed an appeal against Sterling Biotech Ltd. The case involves submissions from counsels representing the Enforcement Directorate and bond-holders. The court is considering the 'Terms of Settlement' and KYC compliance related to the funds involved. The central issue revolves around the necessity of continuing the Resolution Professional or Liquidator for clarification purposes in the insolvency proceedings. The appellant, Andhra Bank, has intimated that the Terms of Settlement on which the amount is payable and the KYC of the customers will be kept on record for perusal of the Enforcement Directorate or any other investigation agency by September 24, 2019.

## Issues and analysis

### Issue 1: Whether the 'Terms of Settlement' and KYC compliance are adequate for the Enforcement Directorate's …

**Ratio:** The principle of transparency and compliance with regulatory requirements, particularly

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**Reasoning:** The court is considering whether the 'Terms of Settlement' and KYC information provided

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**Interpretation:** The interpretation involves assessing whether the provided documentation meets

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**Application:** The court will apply this principle to the specific facts of the case,

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## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…; +2 more
- **Appellants:** Andhra…
- **Respondents:** Sterling Biotech…
- **Advocates:** Arun Kath…; A. K. M…; +10 more

## Timeline

- **2019-09-23 — Hearing of…**: The parties were heard regarding the…
- **2019-09-24 — Submission D…**: Parties were directed to file short…

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