# In the matter of Nife Fire Systems Pvt. Ltd. MA-476-2018 In CP-660-IB-2017

> NCLT judgment dated 2018-10-05. Citation: TCN-2018-NCLT-00650. The case involves an application (MA/476/2018) filed in CP/660/IB/2017 under Section 33(2) of…

- **Court:** NCLT
- **Order date:** 5 Oct 2018
- **Citation:** TCN-2018-NCLT-00650
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nife-fire-systems-pvt-ltd-ma-476-2018-in-cp-660-ib-2017-187803b4

## Summary

### Background

The case involves an application (MA/476/2018) filed in CP/660/IB/2017 under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, seeking liquidation of the Corporate Debtor, M/s. Nife Fire Systems Pvt. Ltd. The Corporate Insolvency Resolution Process (CIRP) was initiated on 2018-03-13 and expired on 2018-09-09. The Operational Creditor, M/s. Autocop India Private Limited, initiated the CIRP under Section 9 of the I&B Code, 2016. The Committee of Creditors (CoC) decided to opt for liquidation due to the Corporate Debtor's disarray, non-cooperation from suspended directors, and nil asset value. No resolution plan was received.

## Facts

M/s. Autocop India Private Limited, the Operational Creditor, initiated Corporate Insolvency Resolution Process (CIRP) against M/s. Nife Fire Systems Pvt. Ltd., the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code (I&B Code), 2016. The CIRP commenced on 2018-03-13 and lasted for 180 days, expiring on 2018-09-09. The application CP/660/(IB)/2017 was admitted, and a moratorium was declared. Mr. S. Rajagopal was appointed as the Interim Resolution Professional (IRP). The Committee of Creditors (CoC) was constituted, but the continuance of the IRP as Resolution Professional was deferred. The Registered Office of the Corporate Debtor was in disarray, and the suspended Director did not cooperate. The Corporate Debtor had a nil asset value. No

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, M/s. Nife Fire Systems Pvt. Ltd., should be liquidated under Section …

**Ratio:** Section 33(2) of the I&B Code, 2016, allows the Adjudicating Authority to pass an

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**Reasoning:** The court reasoned that the CoC had decided to opt for liquidation due to the Corporate

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**Interpretation:** Section 33(2) provides the legal basis for initiating liquidation proceedings

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** CH. MOHD SHARIEF…
- **Respondents:** M/s. Nife Fire…

## Timeline

- **2017-01-01 — Filing of CP/660/(IB)/20…**: CP/660/(IB)/2017 filed by…
- **2018-03-13 — CIRP Commen…**: Corporate Insolvency…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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