Supreme Court to Decide on Lenders' Claim to Sterling Biotech Funds

Banks forming a consortium have appealed to the Supreme Court for disbursal of Rs 5,100 crore against a total claim of Rs 19,283.77 crore from Sterling Biotech Ltd, owned by the Sandesara brothers. The verdict, involving multiple lender banks and jurisdictions, is expected on March 23.

The consortium of banks lending to Sterling Biotech Ltd has approached the Supreme Court, requesting the release of Rs 5,100 crore deposited with the court. This amount is part of a larger outstanding claim of Rs 19,283.77 crore against the Sandesara-promoted group.

Justices J K Maheshwari and A S Chandurkar have acknowledged the joint plea, filed by lenders led by the State Bank of India, and set the hearing for March 23. The lenders argue that the deposit should be distributed according to a joint agreed-upon formula, which consolidates claims over several entities of the group.

According to the plan, converted currencies and set interest rates contribute to the total dues computation. Lenders, including SBI and Punjab National Bank, have calibrated their individual shares in the claim, pending the court's nod for proportional distribution.

(With inputs from agencies.)