# In the matter of JBF Petrochemicals Ltd.

> NCLT judgment dated 2023-08-09. Citation: TCN-2023-NCLT-02111. The case involves an application (IA 759 of 2023) filed by Chronos Richardson India Pvt. Ltd.…

- **Court:** NCLT
- **Order date:** 9 Aug 2023
- **Citation:** TCN-2023-NCLT-02111
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jbf-petrochemicals-ltd-ae861ed3

## Summary

### Background

The case involves an application (IA 759 of 2023) filed by Chronos Richardson India Pvt. Ltd. regarding its claim against JBF Petrochemicals Limited, which is undergoing Corporate Insolvency Resolution Process (CIRP) initiated by IDBI Bank Ltd. The CIRP was initiated following the admission of an application under Section 7 of the IBC, 2016. A resolution plan for JBF Petrochemicals Limited was approved on 13.03.2023. The applicant's claim was initially rejected by the Resolution Professional, leading to the filing of IA 745 of 2022, which was disposed of with directions to reconsider the claim. Subsequently, the claim was rejected again, resulting in the present application.

## Facts

IDBI Bank Ltd. initiated Corporate Insolvency Resolution Process (CIRP) against JBF Petrochemicals Limited, and the application u/s 7 of IBC, 2016 was admitted on 28.01.2022. Chronos Richardson India Pvt. Ltd. filed a claim which was rejected by the Resolution Professional (RP). Chronos Richardson India Pvt. Ltd. then filed IA 745 of 2022, which was disposed of with directions to the RP to reconsider the claim. The RP re-verified the claim and rejected it again on 24.05.2023. Chronos Richardson India Pvt. Ltd. then filed IA 759 of 2023 on 16.06.2023. The RP rejected the claim based on the audited books of accounts of JBF Petrochemicals Limited, which showed a debit balance of Rs. 20,70,698 against Chronos Richardson India Pvt. Ltd. The RP also cited reasons such as

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## Issues and analysis

### Issue 1: Whether the Resolution Professional's rejection of the applicant's claim based on the audited books …

**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 action of rejecting the claim based

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**Interpretation:** The Supreme Court's interpretation in Swiss Ribbons case clarifies the role of

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**Application:** The court applied the principle from Swiss Ribbons to the present case, finding

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## Parties

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

## Timeline

- **2022-01-28 — Admission of Section 7…**: Application u/s 7 of IBC, 2016 filed by IDBI Bank Ltd. was admitted, initiating CIRP…
- **2022-01-01 — Filing of IA 74…**: Chronos Richardson India Pvt. Ltd. filed…

## 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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