# 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-04326. The case pertains to the liquidation of M/s Mehta & Associates Fire Protection Systems Pvt.…

- **Court:** NCLT
- **Order date:** 3 Mar 2023
- **Citation:** TCN-2023-NCLT-04326
- **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-a8993890

## Summary

### Background

The case pertains to the liquidation of M/s Mehta & Associates Fire Protection Systems Pvt. Ltd. The operational creditor, Tyco Fire & Security India Pvt. Ltd., initiated Corporate Insolvency Resolution Process (CIRP) 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. Nimai Gautam Shah as the Liquidator. The liquidator made public announcements inviting claims from stakeholders and creditors. The liquidator managed

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## Facts

Tyco Fire & Security India Pvt. Ltd., the Operational Creditor, initiated 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 IRP and later confirmed as RP. The CoC resolved for liquidation with 100% voting on 11.01.2021. The Adjudicating Authority passed the liquidation order on 12.02.2021, appointing Mr. Nimai Gautam Shah as the Liquidator. The CD had two assets: an office building and financial assets (contracts). These assets were sold via e-auctions to Om Synergy Spacelink Pvt. Ltd. and Mr. Dharmesh Manilal Patel, respectively, realizing Rs. 93,00,000 and Rs. 48,35,500. The total realized amount was Rs. 1,40,50,000,

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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 Adjudicating Authority observed that the business of the Corporate Debtor was sold as

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**Interpretation:** Regulation 45(3)(a) is interpreted to facilitate the closure of liquidation

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**Application:** In this case, the Liquidator successfully sold the business 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…**: Application under Section 9 of the IB Code filed by 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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