# In the matter of Firex Systems Pvt. Ltd. C.P. No. 1236-(MAH)-2017

> NCLT judgment dated 2017-11-15. Citation: TCN-2017-NCLT-00201. The case pertains to an insolvency application (CP No 1236 of 2017) filed by Zenith Birla…

- **Court:** NCLT
- **Order date:** 15 Nov 2017
- **Citation:** TCN-2017-NCLT-00201
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/firex-systems-pvt-ltd-cp-no-1236-mah-2017-9b702cc2

## Summary

### Background

The case pertains to an insolvency application (CP No 1236 of 2017) filed by Zenith Birla (India) Limited, the operational creditor, against Firex Systems Private Limited, the corporate debtor, before the National Company Law Tribunal (NCLT), Mumbai Bench. Subsequent to a hearing on October 18, 2017, the parties reached a mutually agreeable settlement.

## Facts

Zenith Birla (India) Limited, the operational creditor, filed an insolvency application (CP No 1236 of 2017) against Firex Systems Private Limited, the corporate debtor. The parties subsequently reached a settlement where Firex Systems agreed to pay Zenith Birla Rs. 50,00,000/- in full settlement of dues. This amount was to be paid in four equal monthly installments of Rs. 12,50,000/- each, backed by post-dated cheques dated 22.11.2017, 20.12.2017, 24.01.2018, and 21.02.2018. The consent terms stipulated that if any cheque was dishonored, Zenith Birla could revive the insolvency application or file a fresh one under the IBC, 2016. Both parties declared that their consent was voluntary and not obtained through coercion or misrepresentation. The NCLT accepted these terms

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## Issues and analysis

### Issue 1: Whether the NCLT can dispose of an insolvency application based on consent terms agreed upon by the …

**Ratio:** The NCLT has the authority to dispose of an insolvency application when the parties

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**Reasoning:** The court reasoned that the parties had voluntarily agreed to the consent terms, which

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**Interpretation:** This interpretation acknowledges the NCLT's power to acknowledge and enforce

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**Application:** In this case, the NCLT applied this principle by accepting the consent terms

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## Parties

- **Judges:** M.K. Sh…; Bhaskara Pantula…
- **Appellants:** Zentih Birla…
- **Respondents:** Firex Systems…; Firex Systems…

## Timeline

- **2017-10-18 — Hearing…**: Hearing held before the NCLT, Mumbai Bench, where the parties discussed the insolvency…
- **2017-11-10 — Consent Term…**: The consent terms were dated…

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