# In the matter of Air & Movement Systems Pvt. Ltd. (IB)-1930(ND)-2019

> NCLT judgment dated 2019-02-28. Citation: TCN-2019-NCLT-04652. An application was filed by Anil Kumar, proprietor of Kay Pee Steels, under Section 9 of the…

- **Court:** NCLT
- **Order date:** 28 Feb 2019
- **Citation:** TCN-2019-NCLT-04652
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/air-movement-systems-pvt-ltd-ib-1930nd-2019-50619eb1

## Summary

### Background

An application was filed by Anil Kumar, proprietor of Kay Pee Steels, under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Air Movement & Control System Private Ltd. due to an alleged default of Rs. 9,09,672/- along with interest. The respondent had purchased goods from the applicant during 2018, and despite making partial payments, a significant amount remained outstanding.

## Facts

Anil Kumar, proprietor of Kay Pee Steels, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against Air Movement & Control System Private Ltd. The claim was based on an alleged default of Rs. 9,09,672/- plus interest. During 2018, the respondent purchased goods from the applicant, resulting in an amount of Rs. 30,83,660/-. The respondent made a partial payment of Rs. 21,73,988/-, leaving an outstanding balance of Rs. 9,09,672/-. The respondent issued two postdated cheques totaling Rs. 4,50,000/- which were dishonored due to 'insufficient balance'. The applicant sent a demand notice on 01.07.2019, seeking Rs. 10,27,310/-, which included the principal amount and interest. The notice sent to the respondent's registered

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## Issues and analysis

### Issue 1: Whether the application filed by Anil Kumar, proprietor of Kay Pee Steels, under Section 9 of the …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016 allows an operational creditor to

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**Reasoning:** The tribunal considered the evidence presented by the applicant, including invoices,

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**Interpretation:** Section 9 provides a mechanism for operational creditors to recover their dues

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**Application:** The applicant, being an operational creditor, filed the application under

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; V.K. SUB…
- **Appellants:** Anil K…
- **Respondents:** Air Movement &…

## Timeline

- **2018-01-01 — Transactions between…**: During the year 2018, the Respondent purchased goods from the Applicant amounting to…
- **2018-07-20 — Period of…**: Applicant supplied goods to the Respondent…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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