# In the matter of Airofrost HVAC Systems Pvt. Ltd  MA 360/2019 & MA 1571-2019 &  C.P. (IB)-1923(MB)-2018

> NCLT judgment dated 2019-05-01. Citation: TCN-2019-NCLT-03604. The case involves an application (MA-1571/2019) in respect of C.P. No. 1923/2018, moved by the…

- **Court:** NCLT
- **Order date:** 1 May 2019
- **Citation:** TCN-2019-NCLT-03604
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/airofrost-hvac-systems-pvt-ltd-ma-3602019-ma-1571-2019-cp-ib-1923mb-2018-7df2af36

## Summary

### Background

The case involves an application (MA-1571/2019) in respect of C.P. No. 1923/2018, moved by the Operational Creditor, CMC Metals Pvt. Ltd., seeking withdrawal of the application under Section 12-A of the Insolvency and Bankruptcy Code (IBC). The basis for the withdrawal is that the debt amount has been settled amongst the parties. The IRP/Resolution Professional is present, and it is stated that Regulation 30-A of the Code is applicable. The Committee of Creditors has not been constituted, and the Information Memorandum has not been created.

## Facts

CMC Metals Pvt. Ltd., an Operational Creditor, initiated insolvency proceedings against Airfrost HVAC Systems Pvt. Ltd. under C.P. No. 1923/2018. Subsequently, CMC Metals Pvt. Ltd. filed an application (MA-1571/2019) to withdraw the insolvency petition, citing a settlement of the debt amount between the parties. The Learned Counsel of the Applicant informed the court that two cheques amounting to ₹6,26,160/- in favour of CMC Metals dated 18.04.2019 were handed over in the Court to the Operational Creditor. There is one more cheque of ₹ One Lakh in favour of CMC Metals towards the debt and other expenses. The IRP/Resolution Professional was present, and the court noted that Regulation 30-A of the IBC was applicable. The Committee of Creditors had not been constituted,

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of the insolvency petition under Section 12-A of the IBC can …

**Ratio:** Section 12-A of the IBC allows for the withdrawal of an application admitted under

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**Reasoning:** The court considered the fact that the debt amount had been settled between the parties.

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**Interpretation:** Section 12-A provides a mechanism for withdrawal of CIRP applications,

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**Application:** In this case, since the Committee of Creditors had not been constituted, the

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## Parties

- **Judges:** M.K. Sh…
- **Respondents:** Airfrost HVAC…; Choonilal…

## Timeline

- **2018-01-01 — C.P. Fil…**: C.P. No. 1923/2018 was…
- **2019-04-24 — MA-1571/201…**: Application MA-1571/2019 submitted on 24.04.2019 moved from the side of the Operational…

## 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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