# In the matter of Sterling Biotech Ltd. and Ors., IA No.1585/MB/2022 in CP(IB)No.490/MB/2018

> NCLT judgment dated 2022-11-11. Citation: TCN-2022-NCLT-00474. The case pertains to an application filed under Section 60(5) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 11 Nov 2022
- **Citation:** TCN-2022-NCLT-00474
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sterling-biotech-ltd-and-ors-ia-no1585mb2022-in-cpibno490mb2018-902de515

## Summary

### Background

The case pertains to an application filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, by Perfect Day Inc. seeking permission from the National Company Law Tribunal (NCLT) to execute and conclude the purchase/acquisition of Sterling Biotech Limited (the Corporate Debtor) as a whole on a going concern basis under liquidation. The Corporate Debtor was ordered to be liquidated on 11.06.2018. Perfect Day Inc. submitted a bid of INR 638,00,00,005/- for acquiring Sterling Biotech Limited and was declared the Successful Bidder after an e-auction process on 04.04.2022.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Sterling Biotech Limited on 11.06.2018. Shri Sundaresh Bhat was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional. As no resolution plan was approved, the Tribunal ordered liquidation on 08.05.2019, effective from 05.11.2019, and appointed Ms. Mamta Binani as the Liquidator. The Liquidator issued a public notice on 21.10.2021, inviting claims for the acquisition of the Corporate Debtor. Perfect Day Inc. submitted a binding bid of INR 638,00,00,005/- and was declared a 'qualified bidder'. An e-auction was conducted on 04.04.2022, where Perfect Day Inc. was declared the Successful Bidder. A Letter of Intent (LOI) was issued on 05.04.2022,

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## Issues and analysis

### Issue 1: Whether the acquisition of the Corporate Debtor as a going concern by the Applicant should be …

**Ratio:** The legal principle applied is that the scheme of the Code and the Liquidation

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**Reasoning:** The court reasoned that approving the acquisition would facilitate the scheme of going

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**Interpretation:** The interpretation is that acquiring a corporate debtor as a going concern

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**Application:** The ratio and reasoning apply to the specific facts as the Applicant has

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## Parties

- **Judges:** P.N. Des…; Shyam Babu…
- **Appellants:** Perfect Da…
- **Respondents:** Sterling Biotech…; Mamta B…

## Timeline

- **2018-06-11 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP)…
- **2019-05-08 — Liquidation…**: Tribunal ordered liquidation of the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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