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

> NCLT judgment dated 2019-11-20. Citation: TCN-2019-NCLT-00538. 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-00538
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/air-master-components-india-pvt-ltd-cp-1439-ib-2018-dc54dc72

## 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 (Operational Creditor) against Air Master Equipments India Pvt. Ltd. (Corporate Debtor). The Operational Creditor claimed a default in payment of debt by the Corporate Debtor.

## 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, due to a default in payment. A prior order dated 06.11.2019 had given the Corporate Debtor a final opportunity to remit Rs.2.5 lakhs, which they failed to do. The Tribunal observed that the Corporate Debtor defaulted on its payment obligations to the Operational Creditor. The Operational Creditor did not propose an Insolvency Resolution Professional, so the Tribunal appointed Mr. V. Mohan as the IRP. The application was filed as CP/1439/IB/2018.

## 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 for the admission of an application if a default has

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**Reasoning:** The Tribunal considered the previous order dated 06.11.2019, which provided a final

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**Interpretation:** Section 9 of the IBC allows an operational creditor to initiate CIRP against a

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**Application:** The Tribunal applied the ratio to the facts by noting the Corporate Debtor's

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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…
- **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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