Pranav B Prem

The National Company Law Tribunal (NCLT), Mumbai Bench, has approved a resolution plan worth ₹12.8 crore submitted by Kanak S. Kewalramani, the Whole-Time Director of Knowledge Marine & Engineering Works Limited, for the revival of Sterling Healthcare Limited. The order was delivered on 13 November 2025 by Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar.

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The Corporate Insolvency Resolution Process (CIRP) against Sterling Healthcare was initiated on 7 December 2023 on a petition filed by L&T Finance over a default exceeding ₹19 crore. Sterling Healthcare, incorporated in 2007, is engaged in the manufacture and export of pharmaceutical products. During the CIRP, the total admitted debt was calculated at ₹19.56 crore, comprising ₹15.44 crore owed to secured financial creditors and ₹4.12 crore owed to operational creditors.

Dhiren Shah was appointed as the Interim Resolution Professional on 7 December 2023 and later confirmed as the Resolution Professional on 5 January 2024. Registered valuers appointed by the Committee of Creditors (CoC) assessed the fair value of the corporate debtor at ₹15.96 crore and its liquidation value at ₹9.85 crore.

Expressions of Interest were invited in February 2024, and after multiple extensions, resolution plans were finally received from Aryan Food Ingredients Limited and Kanak S. Kewalramani. Through a Swiss Challenge process, Kewalramani’s plan emerged as the highest bid. On 25 January 2025, the CoC approved the plan with 100% voting share, and she furnished a performance bank guarantee on 31 January 2025.

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The Resolution Professional confirmed that the plan met all statutory requirements under the Insolvency and Bankruptcy Code (IBC). Under the plan, creditors will receive 65.12% of the total admitted claims, including 74.93% repayment to secured financial creditors and 100% repayment to workmen and employee creditors.

After reviewing the record, the Tribunal found that the plan was compliant with Section 30(2) of the IBC as well as Regulations 37, 38, 38(1A) and 39(4) of the CIRP Regulations. The Bench observed: “The instant Resolution Plan meets the requirements of Section 30(2) of the Code and Regulations 37, 38, 38(1A) and 39(4) of the CIRP Regulations. The Resolution Plan is not in contravention of any of the provisions of Section 29A of the Code and is in accordance with law. The same needs to be approved. Hence, ordered.”

The Tribunal approved the resolution plan in full. It declared that the plan is effective immediately, binding on all stakeholders, and that the moratorium under Section 14 of the IBC stands lifted. The Resolution Professional has been directed to supervise and ensure the successful implementation of the plan.

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The NCLT has formally approved the ₹12.8 crore resolution plan submitted by Kanak S. Kewalramani for Sterling Healthcare Limited and directed that the approved plan be implemented under the supervision of the Resolution Professional, marking the conclusion of the CIRP and the end of the moratorium.

Appearance

For Resolution Professional: Advocate Karan Vir Khosla, Siddhesh Rajput, Rushab Chopra

For Intervenor: Advocate Kunal Kanungo, along with Advocate Atishay Jain

Cause Title: L&T Finance Limited v Sterling Healthcare Limited

Case No: CP(IB) No. 370 of 2023

Coram: Judicial Member Sushil Mahadeorao Kochey, Technical Member Prabhat Kumar