# In the matter of Sterling Biotech Limited MA 1270-2019 in CP (IB) 490-(MB)-2018

> NCLT judgment dated 2019-04-05. Citation: TCN-2019-NCLT-04110. The case involves an application (MA 1259/2019) filed by the Resolution Professional (RP)…

- **Court:** NCLT
- **Order date:** 5 Apr 2019
- **Citation:** TCN-2019-NCLT-04110
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sterling-biotech-limited-ma-1270-2019-in-cp-ib-490-mb-2018-074a50f9

## Summary

### Background

The case involves an application (MA 1259/2019) filed by the Resolution Professional (RP) seeking directions to continue as RP for the Corporate Debtor, Sterling Biotech Limited, until the final disposal of CP(IB)490/2018. The RP also requested permission to convene meetings of the Committee of Creditors (CoC) to discuss matters concerning the Corporate Debtor and seek necessary approvals. An earlier application (MA 951/2019) was filed by Andhra Bank, a financial creditor, for withdrawal of the Corporate Insolvency Resolution Process (CIRP). The CoC had resolved to withdraw the CIRP with a 90.32% affirmative vote, based on a one-time settlement offer from the promoters of the Corporate Debtor. The RP was initially appointed as the Interim Resolution Professional (IRP)

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## Facts

Andhra Bank initiated Corporate Insolvency Resolution Process (CIRP) against Sterling Biotech Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. The applicant was appointed as the Interim Resolution Professional (IRP) on 2018-06-11 and later confirmed as the Resolution Professional (RP). The CIRP period was extended, with the final completion date being 2019-03-08. Promoters of Sterling Biotech Limited offered a one-time settlement (OTS). The Committee of Creditors (CoC) voted with 90.32% in favor of withdrawing the CIRP under Section 12A of the IBC. Andhra Bank, the original petitioner, filed MA 951/2019 for withdrawal of the CIRP on 2019-03-08, the last day of the CIRP period. The RP filed MA 1010/2019 on 2019-03-12, also for withdrawal of the

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of CIRP is maintainable when filed after the expiry of the …

**Ratio:** Section 12A of the IBC and Regulation 30A of the IBBI Regulations govern the withdrawal

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**Reasoning:** The court reasoned that the application for withdrawal filed by the Financial Creditor

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**Interpretation:** Section 12A allows for withdrawal of CIRP with the approval of 90% of the CoC.

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**Application:** In this case, the application for withdrawal was filed after the expiry of the

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## Parties

- **Judges:** V. P. S…; RavikumarDu…
- **Appellants:** Andhra…
- **Respondents:** Sterling Biotech…

## Timeline

- **2018-06-11 — Appointment…**: Applicant appointed as Interim Resolution…
- **2018-07-26 — CoC Meet…**: CoC in its first meeting confirmed the appointment of the applicant as Resolution…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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