# In the matter of JBF Petrochemicals Pvt. Ltd. C.P. No. (IB) 245-9-NCLT-AHM-2018

> NCLT judgment dated 2020-01-21. Citation: TCN-2020-NCLT-02250. The operational creditor filed a petition under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 21 Jan 2020
- **Citation:** TCN-2020-NCLT-02250
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jbf-petrochemicals-pvt-ltd-cp-no-ib-245-9-nclt-ahm-2018-87f90ac8

## Summary

### Background

The operational creditor filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process against the corporate debtor for an alleged default of Rs. 78,00,000/-.

## Facts

The operational creditor, IDBI Capital Markets & Securities Ltd., filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against JBF Petrochemicals Ltd., the corporate debtor. The petition alleged a default of Rs. 78,00,000/- for services rendered in assessing and arranging working capital. The operational creditor claimed to have raised three invoices dated June 17, 2016, December 30, 2016, and March 31, 2017, for these services. The corporate debtor, JBF Petrochemicals Ltd., had approached the operational creditor for assistance in assessing and arranging working capital. An offer letter was executed in June 2016, outlining the services and payment terms. The operational creditor claimed that the corporate debtor failed to clear the

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## Issues and analysis

### Issue 1: Whether there is a pre-existing dispute between the …

**Ratio:** A pre-existing dispute, if raised by the corporate debtor in response to a demand notice,

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**Reasoning:** The corporate debtor had replied to the demand notice, raising a bona fide and genuine

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**Interpretation:** The NCLT interpreted 'existence of a dispute' broadly, as per the Supreme

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**Application:** The corporate debtor's reply letter dated March 27, 2018, clearly indicated a

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## Parties

- **Judges:** Manorama…; Chockalingam…
- **Appellants:** IDBI capital…
- **Respondents:** JBF Petrochemicals…
- **Advocates:** Maulik Na…; Manvi D…; +3 more

## Timeline

- **June, 2016 — Offer Letter…**: An offer letter was executed between the corporate debtor and the operational creditor…
- **June 17, 2016 — First Invoice…**: The operational creditor raised the first invoice for Rs. 23.00 lacs, of which Rs. 20.00…

## 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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