Munmun Kaur
Published On: January 27, 2022 at 12:49 IST
Recently, the National Company Law Tribunal (NCLT) in Mumbai allowed the initiation of the Liquidation process of the Bombay Stock Exchange-listed company, Nitin Fire Protection Industries Limited (NFPIL). NFPIL is a leading player in fire protection systems in the Country which owes more than Rs 618 crore to its lenders.
Earlier in November 2019, the Mumbai-based company was admitted under the Corporate Insolvency resolution process through a petition filed by its lender, Dena Bank. 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The Committee of Creditors (CoC) received four resolution plans, out of which three were rejected and one was withdrawn.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 the lenders failed to reach any feasible revival plan, the National Company Law Tribunal (NCLT), on January 18, allowed the company’s resolution professional (RP) U Balakrishna Bhat’s application for the liquidation of the company.
The Division Bench of Judicial Member HV Subba Rao and Technical Member Chandra Bhan Singh observed, “All the powers of the board of directors, key managerial persons, the partners of the corporate debtor hereafter ceased to exist. All these powers henceforth vest with the liquidator”.
The Bench further directed the personnel of the Corporate Debtor (Nitin Fire Protection Industries) to extend all co-operation to the liquidator as required by him in managing the liquidation process of the corporate debtor.
Also read: Process of Listing a Company on Stock Exchange