The National Company Law Tribunal (NCLT) in Mumbai has allowed the initiation of liquidation process of the Bombay Stock Exchange-listed company, Nitin Fire Protection Industries Limited (NFPIL)..The NCLT had in October 2019 allowed the petition filed by Dena Bank seeking to initiate Corporate Insolvency Resolution Process (CIRP) against NFPIL.U Balakrishna Bhat was appointed the resolution professional who invited Expressions of Interest and Resolution Plans for the insolvent company.The Committee of Creditors (CoC) received four resolution plans, out of which three were rejected and one was withdrawn.Since there was no resolution plan for NFPIL and the statutory period of 270 days had expired, the RP sought for the initiation of the liquidation process.The Bench initially extended the CIRP period and directed the CoC to consider the resolution plan submitted by Nitin Shah.However, on September 29, 2021, the CoC rejected the resolution plan and as there was no further plan under consideration, the CoC approved the liquidation of NFPIL with 97.58 per cent majority.The CoC approved the liquidation cost of ₹2,21,75,000 with a cap on remuneration of upto ₹45 lakh.In view of this, the Bench of Judicial Member HV Subba Rao and Technical Member Chandra Bhan Singh was left with no option but to order the liquidation of NFPIL.With Bhat’s consent, he is to carry on as liquidator and initiate the process..[Read order]
The National Company Law Tribunal (NCLT) in Mumbai has allowed the initiation of liquidation process of the Bombay Stock Exchange-listed company, Nitin Fire Protection Industries Limited (NFPIL)..The NCLT had in October 2019 allowed the petition filed by Dena Bank seeking to initiate Corporate Insolvency Resolution Process (CIRP) against NFPIL.U Balakrishna Bhat was appointed the resolution professional who invited Expressions of Interest and Resolution Plans for the insolvent company.The Committee of Creditors (CoC) received four resolution plans, out of which three were rejected and one was withdrawn.Since there was no resolution plan for NFPIL and the statutory period of 270 days had expired, the RP sought for the initiation of the liquidation process.The Bench initially extended the CIRP period and directed the CoC to consider the resolution plan submitted by Nitin Shah.However, on September 29, 2021, the CoC rejected the resolution plan and as there was no further plan under consideration, the CoC approved the liquidation of NFPIL with 97.58 per cent majority.The CoC approved the liquidation cost of ₹2,21,75,000 with a cap on remuneration of upto ₹45 lakh.In view of this, the Bench of Judicial Member HV Subba Rao and Technical Member Chandra Bhan Singh was left with no option but to order the liquidation of NFPIL.With Bhat’s consent, he is to carry on as liquidator and initiate the process..[Read order]
