# 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-04045. The case involves an application filed by CMC Metals Pvt. Ltd., an Operational Creditor,…

- **Court:** NCLT
- **Order date:** 8 Apr 2019
- **Citation:** TCN-2019-NCLT-04045
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/airofros-hvac-systems-pvt-ltd-cpib-1923-mb-2018-df757aca

## Summary

### Background

The case involves an application filed by CMC Metals Pvt. Ltd., an Operational Creditor, against Airofrost HVAC Systems Pvt. Ltd., the Corporate Debtor, under Section 9 of the Insolvency & Bankruptcy Code, 2016. 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. A demand notice was issued to the Corporate Debtor, but they did not respond. The petition was filed to initiate the Corporate Insolvency Resolution Process (CIRP).

## Facts

CMC Metals Pvt. Ltd. (Operational Creditor) filed a petition against Airofrost HVAC Systems Pvt. Ltd. (Corporate Debtor) under Section 9 of the Insolvency & Bankruptcy Code, 2016, claiming an outstanding operational debt of ₹6,26,160 (₹3,73,188 principal + ₹2,52,972 interest). The debt arose from purchase orders placed by the Corporate Debtor in June 2015 for copper tubes, pipes, and fittings. The Operational Creditor delivered the goods and raised invoices. The Corporate Debtor failed to make the payments. The first date of default was June 13, 2015, and the second was June 20, 2015. A demand notice under Section 8 of the Code was issued on May 7, 2018, and received by the Corporate Debtor on May 10, 2018, but no response was received. The Corporate Debtor

…

## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted on its …

**Ratio:** Section 3(12) of the Insolvency & Bankruptcy Code, 2016, defines default as

…

**Reasoning:** The court observed that the Corporate Debtor failed to make payments for the goods

…

**Interpretation:** The definition of default under Section 3(12) is interpreted to mean that if a

…

**Application:** In this case, the Corporate Debtor failed to pay the outstanding amount to the

…

## Parties

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

## Timeline

- **2015-06-13 — First Date of…**: The first date of default occurred when the Corporate Debtor failed to pay for the goods…
- **2015-06-20 — Second Date of…**: The second date of default occurred when the Corporate Debtor failed to pay for the goods…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/airofros-hvac-systems-pvt-ltd-cpib-1923-mb-2018-df757aca