It has also directed that the management should be handed over to its promoters if the dues of creditors are settled.
In an oral order, a three-member NCLAT bench presided over by justices SJ Mukhopadhyay and AIS Cheema along with member (technical) Kanti Narahari, set aside the May 8 order of the National Company Law Tribunal's Mumbai bench and allowed withdrawal of a petition filed under Section 7 of the Insolvency and Bankruptcy Code (IBC).
In June, the NCLAT had stayed the corporate insolvency resolution process of Gujarat-based Sterling Biotech after its workmen and lenders challenged the NCLT order before the appellate tribunal. The appellate tribunal further directed the resolution professional of Sterling Biotech to manage the company till the conditions of section 12A are complied. Section 12A of the Insolvency and Bankruptcy Code (IBC) allows corporate debtor to settle its defaults and get the company out of insolvency proceedings after settling the claims of lenders.
On applicability of sec 29A on applicant in case of withdrawal of application:
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