# In the matter of Nitin Fire Protection Industries Limited IA 2154-2021 in C.P. (IB)-1890(MB)-2018

> NCLT judgment dated 2022-01-18. Citation: TCN-2022-NCLT-04423. IA 2154/2021 was filed in CP(IB)-1890(MB)/2018 by Mr. Hiren A Gor, an employee of the Corporate…

- **Court:** NCLT
- **Order date:** 18 Jan 2022
- **Citation:** TCN-2022-NCLT-04423
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/nitin-fire-protection-industries-limited-ia-2154-2021-in-cp-ib-1890mb-2018-0d501ff5

## Summary

### Background

IA 2154/2021 was filed in CP(IB)-1890(MB)/2018 by Mr. Hiren A Gor, an employee of the Corporate Debtor Company, challenging the rejection of the Resolution Plan submitted by the suspended Promoter of the Corporate Debtor Company, M/s Nitin Fire Protection Industries Limited. The applicant argued that the Resolution Plan of the ex-Promoter/Director should be approved to prevent job losses for him and other workers.

## Facts

Mr. Hiren A Gor, an employee of Nitin Fire Protection Industries Limited, the Corporate Debtor, filed IA 2154/2021 challenging the rejection of a Resolution Plan submitted by the suspended promoter. Gor argued that the plan's rejection would lead to job losses. The Committee of Creditors (CoC) had rejected the plan after detailed deliberations, considering its viability. The applicant is an employee, collusion between the suspended promoter and the Petitioner in filing the above Petition cannot be ruled out. Even otherwise the Petitioner has no locus to file the present application.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can interfere with the commercial wisdom of the Committee of …

**Ratio:** The acceptance or rejection of a Resolution Plan is a commercial decision of the CoC, and

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**Reasoning:** The Bench relied on established legal precedent, including judgments from NCLAT and the

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**Interpretation:** This principle reinforces the CoC's autonomy in making commercial decisions

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**Application:** The Bench applied this principle by refusing to interfere with the CoC's

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## Parties

- **Judges:** H.V. Subb…; Chandra Bha…
- **Appellants:** Hiren…
- **Respondents:** Nitin Fire…; U Balakrishna…

## Timeline

- **2021-01-01 — Filing of IA 2…**: IA 2154/2021 in CP(IB)-1890(MB)/2018 was filed by Mr. Hiren A Gor, an employee of the…
- **2022-01-18 — Order del…**: The Bench dismissed IA 2154/2021, upholding the CoC's decision to reject the Resolution…

## 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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