NCLT Admedabad Orders Closure Of Liquidation Of M/s Mehta & Associates Fire Protection Systems Pvt. Ltd.

NCLT Admedabad bench comprising of Dr. Madan B. Gosavi (Judicial Member) and Shri Ajai Das Mehrotra (Technical Member) has ordered for closure of liquidation of M/s Mehta & Associates Fire Protection Systems Pvt. Ltd. (‘Corporate Debtor’) under Regulation 44(1), 45(1), and 45(3)(a) of the IBBI (Liquidation Process) Regulations, 2016 (‘Liquidation Regulations’). The Corporate Debtor was admitted into Corporate Insolvency Resolution Process (‘CIRP’) on 16.12.2020 and an Interim Resolution Professional (‘IRP’) was appointed. The Committee of Creditors passed a resolution for liquidation of Corporate Debtor with 100% voting on the first meeting held on 11.01.2021 and the Adjudicating Authority passed the liquidation order on 12.02.2021. A Liquidator was appointed and he handled the business of the Corporate Debtor as a going concern, even earning a profit of Rs. 6 lakhs which was paid to the Sole Stake holder i.e. Bank of Baroda after meeting Liquidation Costs. The total realized amount from the sale of the liquidation estate of the Corporate Debtor was 1.4 crores. The sole Financial Creditor i.e. Bank of Baroda had an admitted claim of 5.56 crores, out of which they recovered 1.34 crores (24.20%) and the Operational Creditors had an admitted claim of 1.23 crores out of which they did not recover any amount. The business was sold as a going concern and the Liquidator submitted before the Tribunal that the company had obtained major orders and contracts. The Liquidator submitted that the business contracts were the major financial assets of the Corporate Debtor and without selling the business as a going concern, this asset of the Corporate Debtor would not have realized anything. Hence, the Liquidator was able to realize 48.3 lakhs by selling the business as a going concern. On the basis of the above observations, the Tribunal ordered for the closure of the liquidation process of the Corporate Debtor under Regulation 45(3)(a) of the Liquidation Regulations. The Corporate Debtor was in the business of installation/maintenance of Fire Protection systems in factories and buildings. Case No. :IA No./722/AHM/2021 In C.P. (I.B.) No. /243/NCLT/AHM/2019 Case Number: Tyco Fire & Security India Pvt. Ltd vs M/s Mehta & Associates Fire Protection Systems Pvt. Ltd ClickHere To Read/Download Order

NCLT Admedabad Orders Closure Of Liquidation Of M/s Mehta & Associates Fire Protection Systems Pvt. Ltd.

Udai Yashvir Singh

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