In the matter of Sterling Biotech Limited [M.a. 136 of 2019 in C.P.(Ib) No. 490-MB-2018]
Case brief
What is this about?
In three consolidated miscellaneous applications under the Insolvency and Bankruptcy Code, 2016, the National Company Law Tribunal (NCLT) Mumbai Bench addressed claims by the Resolution Professional of Sterling Biotech Limited against its erstwhile directors. The Tribunal directed directors to repay amounts received through transactions allegedly amounting to fraudulent dealings, preferential transfers to related parties, and undervalued leases. Relying on the respondents' failure to file replies or explain the suspicious nature of the transactions, the Tribunal ordered refunds with interest and possession of leased land.
What did the court decide?
Directing directors to contribute sums for fraudulent and undervalued transactions with interest; setting aside preferential transactions and directing refund; directing lessee to return possession of leased land; directing management to disclose capital work in progress and overseas offices.