# In the matter of JBF Petrochemicals Limited

> NCLT judgment dated 2023-10-06. Citation: TCN-2023-NCLT-01343. Technip Energies India Limited, the applicant, filed an application under Section 60(5) of the…

- **Court:** NCLT
- **Order date:** 6 Oct 2023
- **Citation:** TCN-2023-NCLT-01343
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jbf-petrochemicals-limited-4a3a9e13

## Summary

### Background

Technip Energies India Limited, the applicant, filed an application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking directions regarding the partial rejection of its operational claim submitted to the Resolution Professional (RP) of JBF Petrochemicals Limited, the corporate debtor. The applicant had provided services and supplied equipment and materials to the corporate debtor under multiple contracts. After the corporate debtor was admitted into CIRP, the applicant submitted a claim of Rs. 74,77,28,075/-, but the RP admitted only Rs. 5,88,74,343/-, placing the remaining amount under verification. The RP later rejected the majority of the claim, citing a lack of written acceptance by the corporate debtor for the amount exceeding the balance in

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## Facts

Technip Energies India Limited (Applicant) provided engineering services and supplied equipment to JBF Petrochemicals Limited (Corporate Debtor) under multiple contracts. The applicant submitted a claim of Rs. 74,77,28,075/- during the Corporate Insolvency Resolution Process (CIRP) of JBF Petrochemicals Limited. The Resolution Professional (RP) admitted only Rs. 5,88,74,343/- of the claim, rejecting the remaining amount due to a lack of written acceptance by the Corporate Debtor. The applicant sought directions from the NCLT to admit the entire claim. The RP relied on the books of accounts of the Corporate Debtor and the absence of written acceptance for the additional amount. The Committee of Creditors (COC) had already approved a resolution plan. The applicant argued

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## Issues and analysis

### Issue 1: Whether the Resolution Professional (RP) was justified in rejecting a portion of the operational …

**Ratio:** The legislative intent behind the Insolvency and Bankruptcy Code (IBC) is to freeze all

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**Reasoning:** The court reasoned that the RP's decision was based on the verification of the corporate

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**Interpretation:** The court interpreted Section 60(5) of the IBC to mean that the Adjudicating

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**Application:** In this case, the court applied the ratio to the facts by noting that the RP

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** Technip Energies…
- **Respondents:** JBF Petrochemicals…; Sundaresh Bhat RP…

## Timeline

- **2012-12-21 — Contracts E…**: Applicant and Corporate Debtor entered into 3 separate contracts for procurement and…
- **2014-01-13 — High Court…**: Hon'ble High Court of Delhi approved the scheme of amalgamation of Technip E&C India…

## 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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