# 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-04119. 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-04119
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sterling-biotech-limited-ma-1270-2019-in-cp-ib-490-mb-2018-1a1d1ea5

## 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, and to convene meetings of the Committee of Creditors (CoC). The RP also sought permission to replace the statutory auditor. The CIRP period ended on 8.3.2019. An application for withdrawal of the Corporate Insolvency Resolution Process (CIRP) under Section 12A of the Insolvency and Bankruptcy Code (IBC) was filed by Andhra Bank, the original petitioner, after a one-time settlement offer from the promoters. The CoC approved the withdrawal with a 90.32% vote. However, the application for withdrawal was filed after the statutory CIRP period ended.

## Facts

Andhra Bank initiated Corporate Insolvency Resolution Process (CIRP) against Sterling Biotech Limited under Section 7 of the Insolvency and Bankruptcy Code (IBC), 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 until 2018-11-28, with effect from 2018-12-08, and the final date for completion was 2019-03-08. Promoters of the Corporate Debtor offered a one-time settlement, leading Andhra Bank to submit Form FA for withdrawal of CIRP on 2019-03-05. The CoC approved the withdrawal with 90.32% vote. Andhra Bank filed MA 951/2019 on 2019-03-08, and the RP filed MA 1010/2019 on 2019-03-12, both seeking withdrawal of the petition. The RP also filed

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of CIRP under Section 12A of the IBC and Regulation 30A of …

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

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

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**Interpretation:** The court interpreted that the application for withdrawal should be filed

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**Application:** In this case, the application for withdrawal was filed after the CIRP period

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## Parties

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

## Timeline

- **2018-06-11 — Appointment…**: The applicant was appointed as the Interim Resolution Professional (IRP) of the Corporate…
- **2018-07-26 — Confirmatio…**: The CoC confirmed the appointment of the…

## 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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