# In the matter of JBF Petrochemicals Limited

> NCLT judgment dated 2023-10-06. Citation: TCN-2023-NCLT-01348. 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-01348
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jbf-petrochemicals-limited-81fa0355

## 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 rejected the remaining claim because the amount in excess of the balance in the corporate debtor's books of accounts lacked written acceptance

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## Facts

Technip Energies India Limited (Applicant) provided engineering and construction services to JBF Petrochemicals Limited (Corporate Debtor) under multiple contracts. The services included detailed engineering, site soil investigation, construction management, procurement, and supply of equipment and materials for ISBL and OSBL units. Contracts were executed on 21st December 2012 and 22nd April 2014. The applicant completed project milestones and received a Mechanical Completion Certificate. Additional agreements were made on 31st August 2016 for additional work. The applicant raised invoices, but the corporate debtor failed to pay outstanding dues since 2017. The applicant sent reminders, but the corporate debtor did not respond, citing financial crisis. A CIRP was

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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 Tribunal reasoned that the RP's decision was based on the verification of claims

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**Interpretation:** The interpretation of Section 60(5) of the IBC, read with Rule 11 of NCLT

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**Application:** In this case, the RP verified the claim against the corporate debtor's books

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## Parties

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

## Timeline

- **2012-12-21 — Contract Ex…**: Three separate contracts were entered into between Technip Energies India Limited and JBF…
- **2014-04-22 — Contract Ex…**: Technip Energies India Limited entered into another contract with JBF Petrochemicals…

## 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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