# In the matter of Air Master Components (India) Pvt. Ltd. CP-1439-IB-2018

> NCLT judgment dated 2019-11-20. Citation: TCN-2019-NCLT-00532. The case pertains to an application filed under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 20 Nov 2019
- **Citation:** TCN-2019-NCLT-00532
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/air-master-components-india-pvt-ltd-cp-1439-ib-2018-26c3d5bd

## Summary

### Background

The case pertains to an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, by Sun Extrusions against Air Master Equipments India Pvt. Ltd. The Operational Creditor, Sun Extrusions, sought initiation of the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, Air Master Equipments India Pvt. Ltd., due to a default in payment of debt.

## Facts

Sun Extrusions, the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Air Master Equipments India Pvt. Ltd., the Corporate Debtor. The application was filed due to a default in payment of debt by the Corporate Debtor. A previous order dated 06.11.2019 had granted a final opportunity to the Corporate Debtor to remit Rs. 2.5 lakhs. The Corporate Debtor failed to comply with this order. The Operational Creditor did not name an Insolvency Resolution Professional. The debt amount was Rs. 2.5 lakhs.

## Issues and analysis

### Issue 1: Whether the Tribunal should admit the petition filed by the Operational Creditor and initiate the …

**Ratio:** Section 9(5) of the IBC, 2016 allows the Adjudicating Authority to admit the application

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**Reasoning:** The Tribunal reasoned that the Corporate Debtor had failed to remit the sum of Rs. 2.5

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**Interpretation:** The interpretation is that a 'default' under the IBC occurs when a debt is not

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** R. VARADH…; Anil Ku…
- **Appellants:** SUN EXTRU…
- **Respondents:** AIR MASTER…

## Timeline

- **2018-01-01 — Petition…**: CP/1439/IB/2018 filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 r/w…
- **2019-11-06 — Previous…**: A last opportunity was given to the Corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14(1) — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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