Sterling Healthcare Limited vs Sterling Biotech Limited

Sterling Healthcare Ltd. ...Appellant(s) Through its RP Dhiren Shantilal Shah

Versus

Sterling Biotech Ltd. ...Respondent(s) Present: For Appellant : Ms. Pooja Mahajan, Mr. Savar Mahajan and Mr. Karan Vir Khosla, Advocates For Respondents : Mr. Abhijeet Sinha, Sr. Advocate with Mr. Shreeyash Lalit, Mr. Manan Shishodia, Mr. Angad Pahel, Mr. Himanshu Vats, Ms. Runjhun Garg and Mr. Lavam Tyagi, Advocates

ORDER

(Hybrid Mode) 01.10.2024: Heard Ms. Pooja Mahajan, Ld. Counsel for the Appellant.

Shri Abhijeet Sinha, Ld. Sr. Counsel appearing for the Respondent.

2. This appeal has been filed against the order 05.03.2024 by which

order Adjudicating Authority has allowed the M.A. 687 of 2019 filed by the

Respondent No. 1 herein through Resolution Professional of Sterling Biotech

Ltd..

3. Adjudicating Authority vide the order has allowed the application and

issued following direction in paragraph 6 and 9.

"6. The Respondents have not filed the reply despite numerous opportunities having been provided to them. They have also not entered in appearance before this Tribunal.

9. As regards undervalued transaction at 'D', the applicant has placed on record comparable rentals of the lease

CA (AT) (Ins) No. 1030, 917 of 2023 2

property, which clearly demonstrate that the Corporate Debtor's land has been leased to a third party, which is a related entity, at significantly lower consideration. Accordingly, this transaction falls within the scope of Undervalued transaction u/s 45 of the Code. Accordingly, we set aside the lease transaction and direct the Lessee to handover the peaceful and vacant possession of said land back to the Corporate Debtor within 30 days".

4. Appellant's case is that the lease was executed in favour of the

appellant by Sterling Biotech Ltd. and appellant was not impleaded as a

party in the M.A. 687 of 2019 filed by the RP of Sterling Biotech Ltd. and in

the application only the Directors were impleaded.

5. We have looked into paragraph 6 of the order which indicate that

Adjudicating Authority has observed that Respondents have not filed the

reply despite numerous opportunities.

6. Appellant submits that the lease transaction which has been held to

be undervalued appellant was lessee and direction has been issued to

handover the peaceful and vacant possession whereas the appellant could

not get any opportunity to make its submissions.

7. Ld. Counsel for the Respondent has pointed out that this Tribunal

while issuing notice has noticed the earlier I.A. 1831 of 2024 which has

been filed in the insolvency of the appellant and was listed before the

Adjudicating Authority and it has been observed the said application be

heard uninfluenced by the impugned order.

8. In the facts of the present case, we are of the view that the appellant

was required to be heard in M.A. 687 of 2019 in view of the order which was

issued by Adjudicating Authority directing the appellant to handover 3

peaceful and vacant possession which order affect the rights of the

appellant.

9. In view of the facts of the present case, we are of the view that in the

ends of justice be served in setting aside the order 05.03.2024 and reviving

the M.A. 687 of 2019 before the Adjudicating Authority to be heard a fresh,

to obviate the delay in disposal of the application. We permit the

impleadment of the appellant in M.A. 687 of 2019 as one of the Respondent

and grant three weeks' time to the appellant to file its reply to the M.A. 687

of 2019 before the Adjudicating Authority.

10. Adjudicating Authority may fix a date after four weeks for disposal of the MA 687 of 2019. In result the order 05.03.2024 is set aside. The appeal is disposed of as above, looking to the fact that MA 687 of 2019 is pending from 2019. We observe that Adjudicating Authority shall endeavour to dispose of the application as early as possible.

11. We make it clear that we have not expressed any opinion on the merits of M A 687 of 2019.

[Justice Ashok Bhushan] Chairperson

[Barun Mitra] Member (Technical)

[Arun Baroka] Member (Technical) sr/nn