# In the matter of Jadoun International Pvt. Ltd. IA(IBC) No. 359-JPR-2019 in IB No. 707(PB)-2019]

> NCLT judgment dated 2023-08-11. Citation: TCN-2023-NCLT-02065. The case involves an application (IA No. 359/JPR/2019) filed by the Resolution Professional…

- **Court:** NCLT
- **Order date:** 11 Aug 2023
- **Citation:** TCN-2023-NCLT-02065
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jadoun-international-pvt-ltd-iaibc-no-359-jpr-2019-in-ib-no-707pb-2019-719e1880

## Summary

### Background

The case involves an application (IA No. 359/JPR/2019) filed by the Resolution Professional (RP) of Jadoun International Pvt. Ltd. (Corporate Debtor) under Section 60(5) read with Section 20 of the Insolvency and Bankruptcy Code (IBC). The RP sought directions against Respondent No. 2, Garg Granite Pvt. Ltd., to pay an outstanding amount of Rs. 41,07,291/- due to the Corporate Debtor for freight services. The Financial Creditor, Indus Container Lines Pvt. Ltd., had initiated CIRP against Jadoun International Pvt. Ltd. The RP, after scrutinizing the Corporate Debtor's accounts, found its assets insufficient to cover its liabilities. The Respondent No. 2 disputed the amount, claiming an agreement for adjustment of accounts with related entities and set-off against goods

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## Facts

Indus Container Lines Pvt. Ltd., the Financial Creditor, initiated CIRP against Jadoun International Pvt. Ltd. (Corporate Debtor) under Section 7 of the IBC. The CIRP was initiated on 2019-01-25, and Mr. Ajit Kumar was appointed as the IRP. The RP filed IA No. 359/JPR/2019 seeking directions against Garg Granite Pvt. Ltd. (Respondent No. 2) to pay Rs. 41,07,291/- for outstanding freight services. The RP's application was based on the Corporate Debtor's books of accounts and ledger, which reflected the outstanding amount. The Respondent No. 2 disputed the amount, claiming an agreement for adjustment of accounts with related entities and set-off against goods supplied to the Corporate Debtor's proprietorship firm, Radha Rani Export Pvt Ltd. The invoices related to the

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## Issues and analysis

### Issue 1: Whether the NCLT has jurisdiction under Section 60(5) of the IBC to entertain an application for …

**Ratio:** The NCLT's jurisdiction under Section 60(5)(c) of the IBC is limited to disputes that

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**Reasoning:** The court relied on the Supreme Court's judgment in Gujarat Urja Vikas Nigam Limited vs.

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**Interpretation:** Section 60(5)(c) of the IBC should be interpreted narrowly to include only

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**Application:** In this case, the dispute regarding the outstanding amount and the claim of

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## Parties

- **Judges:** Deep Chandr…; ATUL CHAT…
- **Appellants:** Ajit K…
- **Respondents:** Jadoun Internation…; Represented…

## Timeline

- **2018-01-01 — IB No. 707(P…**: In IB No. 707(…
- **2019-01-25 — CIRP Init…**: Authority initiated CIRP…

## 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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