# In the matter of Nitin Fire Protection Industries Limited IA 2062-2021 in C.P.(IB)-1890-(MB)-2018

> NCLT judgment dated 2022-01-18. Citation: TCN-2022-NCLT-04424. IA 2062/2021 was filed in relation to CP(IB)-1890/(MB)/2018, challenging the Committee of…

- **Court:** NCLT
- **Order date:** 18 Jan 2022
- **Citation:** TCN-2022-NCLT-04424
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/nitin-fire-protection-industries-limited-ia-2062-2021-in-cpib-1890-mb-2018-34470443

## Summary

### Background

IA 2062/2021 was filed in relation to CP(IB)-1890/(MB)/2018, challenging the Committee of Creditors' (CoC) rejection of the Applicant's Resolution Plan. The Resolution Plan was discussed in the 26th CoC meeting on 2021-08-31 and subsequently put to vote. The Applicant's Resolution Plan was considered by Respondent Nos. 2 to 7, including IDBI Bank Limited, Axis Bank Limited, IFCI Limited, Bank of Baroda, Aditya Birla Capital Limited, and PNB Housing Finance Limited, during the 21st to 26th CoC meetings. The applicant was asked to revise the plan based on CoC suggestions. The Resolution Plan dated 2021-08-28, along with an addendum dated 2021-09-04, was put to vote on 2021-09-01 and concluded on 2021-09-20 after an extension of the voting period.

## Facts

Nitin Shah, the Applicant and ex-Promoter/suspended Director of the Corporate Debtor, M/s Nitin Fire Protection Industries Limited, filed IA 2062/2021 challenging the rejection of his Resolution Plan by the Committee of Creditors (CoC). The Resolution Plan was discussed in the 26th meeting of the CoC on 2021-08-31. The CoC comprises financial creditors including IDBI Bank Limited, Axis Bank Limited, IFCI Limited, Bank of Baroda, Aditya Birla Capital Limited, and PNB Housing Finance Limited. The Applicant revised his plan several times based on suggestions from the CoC. The final Resolution Plan dated 2021-08-28, with an addendum dated 2021-09-04, was put to vote between 2021-09-01 and 2021-09-20. The voting results showed that 17.98% of the financial creditors voted in

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## Issues and analysis

### Issue 1: Whether the CoC was justified in rejecting the …

**Ratio:** Section 30(4) of the Insolvency and Bankruptcy Code (IBC), 2016, mandates that a

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**Reasoning:** The court reasoned that the Resolution Plan did not receive the required 66% approval

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**Interpretation:** Section 30(4) of the IBC, 2016, is interpreted strictly to mean that a

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**Application:** In this case, because the Resolution Plan received only 17.98% of the votes, it

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## Parties

- **Judges:** H.V. Subb…; Chandra Bha…
- **Appellants:** Nitin…
- **Respondents:** M/s Nitin Fire…; Rohan Ag…

## Timeline

- **2021-08-28 — Resolution Pl…**: The Resolution Plan was…
- **2021-08-31 — CoC Meet…**: The Resolution Plan was discussed…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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