NCLT Bengaluru Approves Promoters' ₹18.34 Crore Resolution Plan For Sanjeevini Medlife Hospitals

The National Company Law Tribunal (NCLT), Bengaluru, on 13 August approved a resolution plan submitted by the erstwhile promoters of Sanjeevini Medlife Hospitals (India) Private Limited, a Micro, Small and Medium Enterprise (MSME), after the Committee of Creditors approved the plan with 100% voting share.

A Bench comprising Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada held:

“The Resolution Plan marked as Annexure 20, submitted by Dr. G.R. Subhash Kumar Reddy and Dr. Premlata Subhash (in respect of the Corporate Debtor, along with addendum dated 28.02.2026 and subsequent affidavits filed vide Diary No. 1089 dated 04.03.2026, Diary No. 1362 dated 17.03.2026, and affidavits filed on 12.08.2026 and status report of filed by the RP on 04.08.2026 is hereby approved.”

The Tribunal admitted Sanjeevini Medlife Hospitals into the Corporate Insolvency Resolution Process (CIRP), the process for resolving insolvency of a company, on 31 March 2023 following an insolvency petition filed by Canara Bank over a default of Rs. 35.53 crore. The resolution plan was jointly submitted by Dr. G.R. Subhash Kumar Reddy and Dr. Premlata Subhash, the erstwhile promoters of the Corporate Debtor.

Under the plan, Rs. 18.34 crore has been proposed towards settlement of stakeholder claims, along with Rs. 29 lakh towards restart and initial capital expenditure, taking the total cost of revival to Rs. 18.63 crore. Canara Bank, the sole secured financial creditor, has been offered Rs. 14.66 crore against its admitted claim of Rs. 43.92 crore.

The plan also provides for restructuring of the share capital through the induction of two new shareholders, S. Nanjundaiah and K. Vijay Prasad Reddy, who would collectively hold 49% of the post-implementation shareholding. The resolution applicants and investors are required to infuse a total of Rs. 18.70 crore through equity and debt.

The Tribunal noted that the plan addresses the causes of the Corporate Debtor's default, including liquidity issues arising from the high interest rate and short repayment tenure of the earlier term loan and the non-receipt of payments from the Employees' State Insurance Corporation (ESIC). It further noted that the plan provides for additional investment, working capital, repairs and overhauling to enable the hospital to resume operations as a going concern.

The Bench also found that the resolution plan complied with the requirements under the relevant provisions of the Insolvency and Bankruptcy Code, 2016 and the applicable Corporate Insolvency Resolution Process Regulations. It said the approval of the resolution plan would be binding on the Corporate Debtor and its stakeholders. However, it clarified that approval of the resolution plan would not by itself amount to a waiver of taxes, stamp duty or other statutory charges.

Accordingly, the NCLT approved the resolution plan submitted by Dr. G.R. Subhash Kumar Reddy and Dr. Premlata Subhash.

For RP: Hari Babu Thota

For SRA: Advocate MVV Ramana and Dr. G.R Subhash Kumar Reddy

For CoC: Adv. Hemanth Rao