The National Company Law Appellate Tribunal has filed a motion for staying eviction of Sterling Biotech from its premises as the firm which is under debt was going under the bankruptcy resolution process and was under the period of cessation.
It was observed the appellate tribunal that even though Sterling Biotech, which is at present undergoing liquidation, does not own the premises neither it can be ejected nor disturbed during the period of the moratorium as the firm has to remain as a going concern.
NCLAT stated that they held what the Appellate has been rightly directed by the NLCT to hand over the ownership of B Wing premises of Lakshmi Towers and rightly stopped the Appellant from evicting the Corporate Debtor from ‘A’ Wing premises of Lakshmi Towers.
But, it was also stated that so far the main question of who exactly owns the A and B wings premise of the Lakshmi Towers arises. Also, there is any right of the Appellant over the said property, such inquiries aren’t required to be determined in the proceeding under the ‘I&B Code’.
It was also said by NCLAT that if Sterling Biotech gets saved during the insolvency proceeding or if it gets sold to a 3rd party along with the workers then, in that case, one might move before the Competent Court of law for a proper decision.
Apart from this, appellate tribunal further stated that the assets cannot be sold by the Liquidator of the premises in question. NCLT was moved against the financial creditor because of Resolution Professional of Sterling Biotech to return the ownership of B Wing premises of Lakshmi Towers and detain Srei Infrastructure Finance from taking any action concerning A Wing premises, which had given it an allowance.
Subsequently, which, NCLAT was moved by the Srei Infrastructure Finance.