# In the matter of Mehta & Associates Fire Protection Systems Pvt. Ltd. IA No.-722-AHM-2021 in C.P. (I.B.) No. -243-NCLT-AHM-2019

> NCLT judgment dated 2023-03-03. Citation: TCN-2023-NCLT-04343. The case pertains to the liquidation process of M/s Mehta & Associates Fire Protection Systems…

- **Court:** NCLT
- **Order date:** 3 Mar 2023
- **Citation:** TCN-2023-NCLT-04343
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mehta-associates-fire-protection-systems-pvt-ltd-ia-no-722-ahm-2021-in-cp-ib-no-9f48d7ef

## Summary

### Background

The case pertains to the liquidation process of M/s Mehta & Associates Fire Protection Systems Pvt. Ltd. initiated under Section 9 of the IB Code, 2016, by the operational creditor, Tyco Fire & Security India Pvt. Ltd. The application was admitted on 16.12.2020, and Mr. Nimai Gautam Shah was appointed as the Interim Resolution Professional (IRP), later confirmed as Resolution Professional (RP). Subsequently, the Committee of Creditors (CoC) resolved for liquidation with 100% voting on 11.01.2021. The Adjudicating Authority passed the liquidation order on 12.02.2021, appointing Mr. Shah as the Liquidator. The Liquidator managed the Corporate Debtor (CD) as a going concern, generating profits. The application was filed for closure of the liquidation process under

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## Facts

Tyco Fire & Security India Pvt. Ltd., the Operational Creditor, initiated Corporate Insolvency Resolution Process (CIRP) against M/s Mehta & Associates Fire Protection Systems Pvt. Ltd. under Section 9 of the IB Code, 2016. The application was admitted on 16.12.2020, and Mr. Nimai Gautam Shah was appointed as the Interim Resolution Professional (IRP), later confirmed as Resolution Professional (RP). The Committee of Creditors (CoC) passed a resolution for liquidation with 100% voting on 11.01.2021. The Adjudicating Authority passed the liquidation order on 12.02.2021, appointing Mr. Shah as the Liquidator. The Liquidator managed the Corporate Debtor (CD) as a going concern and earned a profit of Rs. 6,00,000/-, which was paid to the Bank of Baroda, the sole

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## Issues and analysis

### Issue 1: Whether the liquidation process of the Corporate Debtor should be closed under Regulation 45(3)(a) …

**Ratio:** Regulation 45(3)(a) of the IBBI (Liquidation Process) Regulations, 2016, allows for the

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**Reasoning:** The court observed that the business of the CD was sold as a going concern, and all

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**Interpretation:** Regulation 45(3)(a) is interpreted to mean that if the primary objectives of

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**Application:** In this case, the Liquidator successfully managed the CD as a going concern,

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## Parties

- **Judges:** Madan B.…; Ajai Das Me…
- **Appellants:** Nimai Gauta…
- **Respondents:** M/s Mehta &…; Tyco Fire…

## Timeline

- **2020-12-16 — CIRP Application…**: The application filed by the Operational Creditor, Tyco Fire & Security India Pvt. Ltd.,…
- **2020-12-16 — Appointment…**: Mr. Nimai Gautam Shah was appointed as the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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