NCLT approves Rs 12.80-cr resolution plan for Sterling Healthcare

The National Company Law Tribunal (NCLT), Mumbai Bench, has approved the Rs 12.80-crore resolution plan submitted by Kanak S. Kewalramani for Sterling Healthcare Limited, bringing an end to the corporate insolvency process for the pharmaceutical company. The tribunal’s order, delivered on 14 November 2025, paves the way for the revival of Sterling Healthcare, which was admitted into the Corporate Insolvency Resolution Process (CIRP) in December 2023.

The resolution plan, which received a 100% vote of approval from the company’s Committee of Creditors (CoC) in January 2025, was upheld by the bench comprising Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar.

The winning bid and payouts

Kewalramani, a qualified Company Secretary and the Whole Time Director and CFO of Knowledge Marine & Engineering Works Limited, emerged as the Successful Resolution Applicant (SRA) following a Swiss Challenge auction. Her plan proposes a total payout of approximately ₹12.80 crore to creditors, plus potential additional benefits.

Key financial distributions under the approved plan include:

• Financial Creditors: A payment of ₹11.65 crore against admitted claims of about ₹15.44 crore. This represents a recovery of nearly 75%. They will also be entitled to any benefits recovered from ongoing litigation against fraudulent or undervalued transactions.
• Operational Creditors (Employees): Full payment of their admitted claims of approximately ₹78.59 lakh.
• Operational Creditors (Others): A payment of ₹37.01 lakh against admitted claims of about ₹3.33 crore, resulting in an 11.11% recovery.

The plan provides nothing for the existing shareholders of Sterling Healthcare.

A notable feature of the plan is an additional ₹3 crore payment promised to financial creditors if the resolution applicant successfully secures the continued use of a leased land and building currently under litigation with Sterling Biotech Limited.

Source of Funds and Compliance

The tribunal noted that Mrs. Kewalramani has demonstrated the financial capacity to implement the plan, with owned liquid assets amounting to approximately ₹545 crore.

In its order, the NCLT confirmed that the resolution plan complies with all legal requirements under the Insolvency and Bankruptcy Code (IBC), 2016, including the provision to pay insolvency resolution costs in priority and treating operational creditors fairly.

The tribunal also granted standard reliefs and concessions to the SRA, in line with the Supreme Court’s judgment in the Ghanshyam Mishra case. These include directives for regulatory authorities like the Registrar of Companies (RoC) to facilitate the plan’s implementation, including waiving additional fees for late filings and updating the company’s status to ‘Active’.

Background and Process

Sterling Healthcare, incorporated in 2007, was a part of the diversified Sandesara Group. It was pushed into insolvency following a petition by L&T Finance Limited. Mr. Dhiren Shah was appointed as the Resolution Professional to manage the process.

The CoC received two resolution plans, from Aryan Food Ingredients Limited and Mrs. Kewalramani. A Swiss Challenge method was employed, where Mrs. Kewalramani, as the anchor bidder, retained the right to match the improved offer of the challenger bidder, which she ultimately did with a higher bid.

Also See: NCLT approves Poly Medicure’s ₹33.15 crore resolution plan for Himalayan Mineral Waters