The Mumbai-based company was admitted under the Corporate Insolvency Resolution Process (CIRP) in November 2019 through a petition filed by its lender, Dena Bank.
On January 18, the National Company Law Tribunal (NCLT) cleared resolution professional (RP) U Balakrishna Bhat’s company application for liquidation, after the lender failed to obtain a workable recovery plan.
“All powers of the board of directors, key executives, associates of the debtor company have now ceased to exist. All such powers are now vested in the liquidator,” said the divisional bench of HV Subba Rao and Chandra Bhan Singh. “The personnel of the debtor company (Nitin Fire Protection Industries) are required to provide all cooperation to the liquidator required by him in the management of the process of liquidation of the debtor company.”
The RP had informed the court that since there was no recovery plan for the company and the legal deadline of 270 days for the recovery of the company had expired, the lenders had decided to file a request liquidation of the company.