NCLT reserves order in Sterling Biotech over settlement issue

Section 29A of IBC says the promoters of the debt-ridden company, which is facing insolvency proceeding, cannot bid for the company

Attempt to withdraw the insolvency proceedings against Sterling Biotech by committee of creditors did not materialize and the National Company Law Tribunal reserved its order in the matter and listed the matter for hearing on April 26.

The bench presided over by V.P.Singh and Ravikumar Duraisamy questioned the motive of the bankers who have accepted the one time settlement offer by the committee of creditors because granting the plea that the bankers have made would mean the absconding promoter of the company would get back the company with a clean balance sheet.

But, Section 29 A of Insolvency and Bankruptcy code says