# In the matter of Nitin Fire Protection Industries Limited M.A. 2727 of 2019 in C.P. No. 1890 of 2018

> NCLT judgment dated 2022-01-18. Citation: TCN-2022-NCLT-04422. The application M.A. No. 2727/2019 was filed by the Resolution Professional, Mr. U. Balakrishna…

- **Court:** NCLT
- **Order date:** 18 Jan 2022
- **Citation:** TCN-2022-NCLT-04422
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/nitin-fire-protection-industries-limited-ma-2727-of-2019-in-cp-no-1890-of-2018-5a93b5c7

## Summary

### Background

The application M.A. No. 2727/2019 was filed by the Resolution Professional, Mr. U. Balakrishna Bhat, seeking liquidation of M/s Nitin Fire Protection Industries Limited (Corporate Debtor) under Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor following the admission of a petition filed by Dena Bank under Section 7 of the Code. The applicant was appointed as the Interim Resolution Professional (IRP).

## Facts

The Resolution Professional, Mr. U. Balakrishna Bhat, filed an application seeking the liquidation of M/s Nitin Fire Protection Industries Limited (Corporate Debtor) under Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016. The CIRP was initiated against the Corporate Debtor based on a petition filed by Dena Bank. The applicant was appointed as the Interim Resolution Professional (IRP). An advertisement inviting Expression of Interest (EoI) was published, and the applicant received Eol from 5 Entities and 4 Resolution Plans. The CoC rejected 3 Resolution Plans, and 1 was withdrawn. The CoC decided to consider a resolution plan, and the CIRP period was extended. The resolution plan was rejected by the CoC in its 26th meeting. In the 27th meeting, the CoC

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor should be ordered to go under liquidation as per Section 33 (1) (a) of …

**Ratio:** Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016, allows for the liquidation

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**Reasoning:** The Committee of Creditors (CoC) rejected the resolution plan in its 26th meeting. In the

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**Interpretation:** Section 33(1)(a) provides the legal basis for initiating liquidation

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**Application:** The CoC's decision to liquidate the Corporate Debtor, coupled with the absence

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## Parties

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

## Timeline

- **2018-01-01 — C.P. No. 1890…**: The matter is in relation…
- **2019-01-11 — Publication of…**: Advertisement was published in…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33 — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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