# In the matter of JBF Petrochemicals Ltd.

> NCLT judgment dated 2023-08-09. Citation: TCN-2023-NCLT-02124. The case involves an application filed by Chronos Richardson India Pvt. Ltd. (applicant)…

- **Court:** NCLT
- **Order date:** 9 Aug 2023
- **Citation:** TCN-2023-NCLT-02124
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jbf-petrochemicals-ltd-77d6a011

## Summary

### Background

The case involves an application filed by Chronos Richardson India Pvt. Ltd. (applicant) regarding its claim against JBF Petrochemicals Limited (corporate debtor) undergoing Corporate Insolvency Resolution Process (CIRP). The CIRP was initiated based on an application filed by IDBI Bank Ltd. under Section 7 of the IBC, 2016, which was admitted on 28.01.2022. A resolution plan was approved on 13.03.2023. The applicant had previously filed IA 745 of 2022 regarding its claim, which was disposed of with directions to the Resolution Professional to reconsider the claim. The Resolution Professional rejected the claim again on 24.05.2023, leading to the present application, IA 759 of 2023, filed on 16.06.2023.

## Facts

Chronos Richardson India Pvt. Ltd. filed a claim in the CIRP of JBF Petrochemicals Limited. IDBI Bank Ltd. initiated CIRP against JBF Petrochemicals Limited, which was admitted on 28.01.2022. A resolution plan was approved on 13.03.2023. Chronos Richardson India Pvt. Ltd. had previously filed IA 745 of 2022, which was disposed of with directions for reconsideration of the claim. The Resolution Professional (Sundresh Bhat) rejected the claim on 24.05.2023. The applicant then filed IA 759 of 2023 on 16.06.2023. The Resolution Professional rejected the claim based on the audited books of accounts of JBF Petrochemicals Limited, which showed a debit balance of Rs. 20,70,698 recoverable from Chronos Richardson India Pvt. Ltd. The applicant argued that debit notes were

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## Issues and analysis

### Issue 1: Whether the Resolution Professional's decision to reject the applicant's claim based on the audited …

**Ratio:** The Resolution Professional is given administrative as opposed to quasi-judicial powers

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**Reasoning:** The court reasoned that the Resolution Professional's actions, based on the records and

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**Interpretation:** The Resolution Professional's role is primarily administrative, and they are

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**Application:** In this case, the Resolution Professional rejected the applicant's claim based

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## Parties

- **Judges:** SHAMMI…; Ajai Das Me…
- **Appellants:** Chronos Richardson…
- **Respondents:** JBF Petrochemicals…; Sundaresh Bhat RP…

## Timeline

- **2022-01-28 — CIRP Init…**: Application u/s 7 of IBC, 2016 filed by IDBI Bank Ltd. was admitted initiating Corporate…
- **2023-03-13 — Resolution Plan…**: The resolution plan vide IA…

## 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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