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

> NCLT judgment dated 2019-02-28. Citation: TCN-2019-NCLT-04642. The case involves an application filed by Anil Kumar, proprietor of Kay Pee Steels, under…

- **Court:** NCLT
- **Order date:** 28 Feb 2019
- **Citation:** TCN-2019-NCLT-04642
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/air-movement-systems-pvt-ltd-ib-1930nd-2019-6c5761b9

## Summary

### Background

The case involves an application 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. The application is based on an alleged default of Rs. 9,09,672/- along with interest at 18% per annum, totaling Rs. 10,27,310/-. The applicant supplied goods to the respondent between 20.07.2018 and 10.10.2018 against written purchase orders, amounting to Rs. 30,83,660/-. The respondent made a part 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 respondent

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## Facts

Anil Kumar, proprietor of Kay Pee Steels, supplied goods to Air Movement & Control System Private Ltd. between 20.07.2018 and 10.10.2018, based on written purchase orders, for a total value of Rs. 30,83,660/-. Air Movement & Control System Private Ltd. made a partial payment of Rs. 21,73,988/-, leaving an outstanding balance of Rs. 9,09,672/-. To settle the outstanding amount, Air Movement & Control System Private Ltd. issued two postdated cheques, one for Rs. 3,00,000/- dated 19.02.2019 and another for Rs. 1,50,000/- dated 18.04.2019, both drawn on Yes Bank. These cheques were dishonored due to 'insufficient balance'. Air Movement & Control System Private Ltd. admitted its liability by issuing a confirmation of accounts on 01.04.2019. Anil Kumar sent a

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## Issues and analysis

### Issue 1: Whether the application filed by Anil Kumar under Section 9 of the Insolvency and Bankruptcy Code, …

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

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**Reasoning:** The Tribunal considered the application filed by Anil Kumar, the proprietor of Kay Pee

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**Interpretation:** Section 9 provides the mechanism for operational creditors to initiate CIRP

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**Application:** The application was deemed maintainable as it was filed by an operational

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## Parties

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

## Timeline

- **2018-07-20 — Supply of…**: Applicant supplied goods to the…
- **2019-02-19 — Cheque I…**: Respondent issued cheque no. 284500…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8(1) — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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