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Sanjeevini Medlife Hospitals' Revival Plan Worth ₹18.63 Crore Gets NCLT Bengaluru Nod
In a significant development for the healthcare MSME sector, the , has approved a worth ₹18.63 crore for Sanjeevini Medlife Hospitals (India) Private Limited, submitted by its erstwhile promoters. The bench of Member (Judicial) Sunil Kumar Aggarwal and Member (Technical) Radhakrishna Sreepada gave its nod on , paving the way for the hospital's revival as a .
The Road to Resolution
Sanjeevini Medlife Hospitals, an MSME with over two decades of operation, was admitted into the on , following a petition by over a of ₹35.53 crore. The hospital, founded by Dr. G.R. Subhash Kumar Reddy and Dr. Premlata Subhash, both experienced pediatricians and obstetricians, faced liquidity issues due to high-interest loans and delayed payments from the .
The , jointly submitted by the doctors, was approved by the sole , , with a 100% in its 14th meeting on . The plan proposes a total infusion of ₹18.70 crore through equity and debt, with ₹18.34 crore allocated for settling stakeholder claims and an additional ₹29 lakh for restart and capital expenditure.
A Tailored Revival Strategy
Under the plan, will receive ₹14.66 crore, amounting to a 33% on its of ₹43.92 crore. The plan also provides for full payment to , including ₹1.26 crore to who had not filed claims, and to authorities like ESIC, , and tax departments.
A key feature is the through the induction of two new shareholders, S. Nanjundaiah and K. Vijay Prasad Reddy, who will collectively hold 49% of the post-implementation share capital. The existing promoters will retain 51% control. The new shareholders are also providing interest-free loans totaling ₹13.76 crore, while the promoters have already deposited ₹2.40 crore towards and performance guarantee.
The tribunal noted that the plan addresses the root causes of , including the short tenure and high interest of earlier loans, and provides for working capital of ₹11 lakh and ₹18 lakh for repairs and overhauling to ensure the hospital's operational viability.
Compliance and Legal Scrutiny
The NCLT meticulously examined the plan's compliance with , and . It found that the plan prioritizes payment to over financial creditors, as required, and includes provisions for adequate supervision through an . The successful resolution applicants have also provided a of ₹1.83 crore (10% of the plan value) and an confirming eligibility under Section 29A.
However, the tribunal directed the resolution professional to clarify the for the , as ordered earlier. The RP was asked to file an on the quantification and realization of the fee reduction.
Key Observations
"The 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 and subsequent affidavits... is hereby approved."
The tribunal also emphasized that the approval does not constitute a such as stamp duty or taxes, and the must approach the respective authorities for any reliefs.
The Path Forward
With the plan approved, the imposed earlier ceases to have effect. The resolution professional is directed to hand over management and assets to the successful resolution applicants immediately. The IMC, comprising representatives from , the resolution applicants, and the RP, will oversee implementation and submit bi-monthly progress reports to the tribunal.
The order marks a fresh start for Sanjeevini Medlife Hospitals, allowing it to continue its healthcare services under experienced medical professionals, while ensuring that the interests of creditors and employees are addressed.
Case Details:
For RP:
Hari Babu Thota
For SRA:
with Dr. G.R. Subhash Kumar Reddy
For CoC:
