NCLT Sees Violation of Sec 29(A) in Sterling Biotech Case

Mumbai: 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 NCLT 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 to the resolution scene on any form. (IANS)

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