# In the matter of M/s IDBI Capital Markets & Securities Ltd. Vs. M/s JBF Petrochemicals Ltd. Company Appeal(AT)(Insolvency) No. 524 of 2020

> NCLAT judgment dated 2021-12-20. Citation: TCN-2021-NCLAT-00007. The Appellant/Applicant/Operational Creditor, IDBI Capital Markets & Securities Ltd., filed…

- **Court:** NCLAT
- **Order date:** 20 Dec 2021
- **Citation:** TCN-2021-NCLAT-00007
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/ms-idbi-capital-markets-securities-ltd-vs-ms-jbf-petrochemicals-ltd-company-appe-1436db7e

## Summary

### Background

The Appellant/Applicant/Operational Creditor, IDBI Capital Markets & Securities Ltd., filed Company Appeal (AT)(Insolvency) No. 524 of 2020 before the NCLAT, New Delhi, challenging the order dated 21st January, 2020 passed by the 'Adjudicating Authority'/National Company Law Tribunal, Ahmedabad Bench, Ahmedabad in CP(IB) No. (IB) 245/9/NCLT/AHM/2018. The Adjudicating Authority had dismissed the application filed by the Operational Creditor under Section 9 of the Insolvency & Bankruptcy Code, 2016. The appeal contests the rejection of the CIRP application against the Corporate Debtor, JBF Petrochemicals Ltd., based on alleged operational debt.

## Facts

IDBI Capital Markets & Securities Ltd. (Operational Creditor/Appellant) claimed that JBF Petrochemicals Ltd. (Corporate Debtor/Respondent) owed them money for services rendered in arranging working capital facilities. An offer letter dated June 2016 outlined the terms, including a commencement fee, fees upon issuance of a sanction letter, and a balance fee on financial closure. The Operational Creditor raised three invoices totaling Rs. 98 lakhs. The Corporate Debtor paid Rs. 20 lakhs against the first invoice. A dispute arose regarding the remaining amount, with the Corporate Debtor claiming that the services were not fully rendered, and the Operational Creditor claiming that the Corporate Debtor acknowledged the debt. The Adjudicating Authority dismissed the

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in dismissing the application filed by the Operational …

**Ratio:** The Adjudicating Authority must examine whether there is an operational debt exceeding

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**Reasoning:** The NCLAT found that the Adjudicating Authority failed to properly consider the evidence

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**Interpretation:** Section 9 of the IBC outlines the requirements for initiating CIRP by an

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**Application:** In this case, the NCLAT found that the Adjudicating Authority failed to

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## Parties

- **Judges:** M. Venu…; V. P. S…; +1 more
- **Appellants:** M/s IDBI Capital…
- **Respondents:** JBF Petrochemicals…; M/s JBF Petrochemi…

## Timeline

- **2016-06-01 — Offer Le…**: Offer letter for arrangement of Working…
- **2016-06-17 — First In…**: First invoice (Bill No.IB/16-17/20) was…

## Legal provisions

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

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