# In the matter of Airofros HVAC Systems Pvt. Ltd. C.P.(IB)-1923-(MB)-2018

> NCLT judgment dated 2019-04-08. Citation: TCN-2019-NCLT-04043. The case pertains to an application filed by CMC Metals Pvt. Ltd., an Operational Creditor,…

- **Court:** NCLT
- **Order date:** 8 Apr 2019
- **Citation:** TCN-2019-NCLT-04043
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/airofros-hvac-systems-pvt-ltd-cpib-1923-mb-2018-dba71c58

## Summary

### Background

The case pertains to an application filed by CMC Metals Pvt. Ltd., an Operational Creditor, under Section 9 of the Insolvency & Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Airofrost HVAC Systems Pvt. Ltd., the Corporate Debtor. The Operational Creditor claimed an outstanding operational debt of ₹3,73,188 plus interest of ₹2,52,972, totaling ₹6,26,160. The Corporate Debtor allegedly failed to make payments for goods delivered based on purchase orders placed in June 2015. The Operational Creditor issued a demand notice under Section 8 of the Code on 07.05.2018, which the Corporate Debtor did not respond to. The petition was filed due to the Corporate Debtor's failure to pay the outstanding debt.

## Facts

CMC Metals Pvt. Ltd. (Operational Creditor) supplied goods (Copper Tubes/Pipes/Copper Fittings/Insulation Tubes) to Airofrost HVAC Systems Pvt. Ltd. (Corporate Debtor) based on purchase orders dated 13.06.2015 and 20.06.2015. The Operational Creditor raised invoices CMC214/15-16 dated 13.06.2015 for ₹1,83,061 and CMC/236/15-16 dated 20.06.2015 for ₹1,90,127, totaling ₹3,73,188. The Corporate Debtor failed to make payments against these invoices. The first date of default was 13.06.2015 and the second was 20.06.2015. The Operational Creditor issued a demand notice dated 07.05.2018 under Section 8 of the IBC, which was received by the Corporate Debtor on 10.05.2018, but the Corporate Debtor did not respond or refute the claim. The petition was filed on 28.05.2018. The

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## Issues and analysis

### Issue 1: Whether the Operational Creditor, CMC Metals Pvt. Ltd., established the existence of a debt and …

**Ratio:** The ratio is based on Section 3(12) of the Insolvency & Bankruptcy Code, 2016, which

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**Reasoning:** The court reasoned that the Operational Creditor provided evidence of invoices raised for

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**Interpretation:** The interpretation involves understanding the definition of 'debt' and

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

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** CMC Metals Pvt.…
- **Respondents:** Airofrost HVAC…

## Timeline

- **2015-06-13 — Purchase Order and…**: Corporate Debtor placed purchase orders; Operational Creditor raised invoice CMC214/15-16…
- **2015-06-20 — Purchase Order and…**: Corporate Debtor placed purchase orders; Operational Creditor raised invoice…

## 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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