# In the matter of JBF Industries Limited

> NCLT judgment dated 2024-01-25. Citation: TCN-2024-NCLT-02924. The case involves an application filed by SABIC Asia Pacific Pte Ltd, the Operational Creditor,…

- **Court:** NCLT
- **Order date:** 25 Jan 2024
- **Citation:** TCN-2024-NCLT-02924
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jbf-industries-limited-9d56450b

## Summary

### Background

The case involves an application filed by SABIC Asia Pacific Pte Ltd, the Operational Creditor, under Section 9 of the IBC, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against JBF Industries Limited, the Corporate Debtor, for a debt of INR 24,71,27,834.91. The debt arose from a Chemical Terms Sales Contract dated 01.01.2014 between Saudi Basic Industries Corporation (SABIC) and JBF Industries Limited (RAK LLC) for the sale and purchase of Mono Ethylene Glycol (MEG). SABIC Asia Pacific Pte Limited became a party to the contract through an amendment in August 2014, effective retroactively from 01.01.2014. The Operational Creditor supplied MEG to the Corporate Debtor and raised invoices for payment. The Corporate Debtor defaulted on payments, leading

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## Facts

A Chemical Terms Sales Contract dated 01.01.2014 was executed between Saudi Basic Industries Corporation (SABIC) and JBF Industries Limited (RAK LLC) for the sale and purchase of Mono Ethylene Glycol (MEG). SABIC Asia Pacific Pte Limited became a party to the contract via an amendment in August 2014, effective from 01.01.2014. The Operational Creditor supplied MEG to the Corporate Debtor, raising invoices for payment. Payment was due within 75 days of the bill of lading date, i.e., 07.02.2017, making the payment due on 22.04.2017. The Corporate Debtor failed to make payments, leading to NCLT proceedings under Section 9 of the IBC. A Settlement Agreement was executed on 26.12.2018, with the Corporate Debtor admitting liability. The Corporate Debtor defaulted on the

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the IBC, 2016, is maintainable for initiating CIRP …

**Ratio:** Section 9 of the IBC, 2016, allows an operational creditor to initiate CIRP against a

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**Reasoning:** The Tribunal considered whether the application met the threshold requirements of Section

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**Interpretation:** Section 9 of the IBC provides a mechanism for operational creditors to recover

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**Application:** The Tribunal found that the Operational Creditor had demonstrated the existence

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** SABIC Asia…
- **Respondents:** JBF Industries…

## Timeline

- **2014-01-01 — Contract Ex…**: A Chemical Terms Sales Contract was executed between Saudi Basic Industries Corporation…
- **2014-08-01 — Contract Am…**: SABIC Asia Pacific Pte Limited became a…

## 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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