NCLAT ALLOWED LIQUIDATION OF BFE LISTED COMPANY - NFPIL

The National Company Law Tribunal, Mumbai, allowed the liquidation process of Nitin Fire Protection Industries Limited (NFPIL). In 2019, Dena Bank sought the initiation of the Corporate Insolvency Resolution Process (CIRP) against NFPIL, and the same was allowed by NCLT. 

U Balakrishna Bhat, the resolution professional (RP), invited Expressions of Interest and Resolution Plans for the company. The Committee of Creditors (CoC) rejected three resolution plans out of four. No resolution plan for the Bombay Stock Exchange-listed company was approved, and the statutory period of 270 days also expired. The RP sought initiation of the liquidation process. 

The Bench of Judicial Member HV Subba Rao and Technical Member Chandra Bhan Singh directed the COC to consider the plan submitted by Nitin Shah. However, the CoC rejected the plan and approved the liquidation of NFPIL with a 97.58% majority. The CoC further allowed the liquidation cost of ₹2,21,75,000 with a remuneration of up to ₹45 lakh.

In view of the same, the bench ordered the liquidation of NFPIL.

Author: Papiha Ghoshal