# In the matter of JBF Petrochemicals Limited IA 660 of 2022 in CP(IB) No. 232-NCLT-AHM-2018

> NCLT judgment dated 9 Mar 2023. Citation: TCN-2023-NCLT-04281. This application was filed by Sundaresh Bhat, the Resolution Professional of JBF Petrochemicals…

- **Court:** NCLT
- **Order date:** 9 Mar 2023
- **Citation:** TCN-2023-NCLT-04281
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jbf-petrochemicals-limited-ia-660-of-2022-in-cpib-no-232-nclt-ahm-2018-7c336b6c

## Summary

### Background

This application was filed by Sundaresh Bhat, the Resolution Professional of JBF Petrochemicals Limited (the Corporate Debtor), under Section 60(5)(C) of the Insolvency and Bankruptcy Code, 2016 (IBC) and Rule 11 of the NCLT Rules, 2016. The Corporate Debtor was aggrieved by the termination of an Off-Take Agreement dated April 12, 2016, by Mangalore Refinery and Petrochemicals Limited (the Respondent). This agreement concerned the supply of Paraxylene (Px) to the Corporate Debtor. The Corporate Debtor was admitted into Corporate Insolvency Resolution Process (CIRP) on January 28, 2022, and a moratorium was declared under Section 14 of the IBC.

## Facts

On November 7, 2012, Mangalore Refinery and Petrochemicals Limited (the Respondent) invited bids for the purchase of Paraxylene ("Px"). JBF Petrochemicals Limited (the Corporate Debtor) accepted this offer. Subsequently, on February 14, 2015, the Respondent issued a notification of award in favor of the Corporate Debtor for the sale and supply of Paraxylene. An Off-Take Agreement for the supply of Px was formally executed between the Corporate Debtor and the Respondent on April 12, 2016.

## Issues and analysis

### Issue 1: Whether the NCLT has the jurisdiction under Section 60(5)(C) of the IBC to adjudicate a dispute…

**Ratio:** The NCLT's residuary jurisdiction under Section 60(5)(C) of the IBC does not extend to…

**Reasoning:** The NCLT reasoned that its residuary jurisdiction under **Section 60(5)(C) of the IBC**…

**Interpretation:** The court interpreted Section 60(5)(C) narrowly, emphasizing that its purpose…

**Application:** Applying this interpretation, the NCLT found that the dispute over the Off-Take…

## Parties

- **Judges:** Madan B.…; Ajai Das Me…
- **Advocates:** Rashesh San…; Saurabh So…; +10 more

## Timeline

- **November 7, 2012 — Bid Invit…**: Mangalore Refinery and Petrochemicals Limited invited bids for the purchase of Paraxylene…
- **February 14, 2015 — Award Notif…**: Mangalore Refinery and Petrochemicals Limited issued a notification of award in favor of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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