# In the matter of John Energy Limited

> NCLT judgment dated 2024-02-09. Citation: TCN-2024-NCLT-02664. Petroserv Corporation FZC filed an application under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 9 Feb 2024
- **Citation:** TCN-2024-NCLT-02664
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/john-energy-limited-a1443652

## Summary

### Background

Petroserv Corporation FZC filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against John Energy Limited, seeking to initiate Corporate Insolvency Resolution Process (CIRP) due to unpaid operational debt of USD 3,648,407.00 (equivalent to Rs.26,40,22,080.32). The application was based on services provided by Petroserv to John Energy for transportation and custom clearance of oil rigs. John Energy Limited disputed the debt, alleging deficiencies in Petroserv's services, retention of materials in Algeria, and raising concerns about the authenticity of documents submitted by Petroserv. The Corporate Debtor also claimed a counterclaim of Rs. 58,74,35,280.09.

## Facts

Petroserv Corporation FZC (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against John Energy Limited (Corporate Debtor) for unpaid operational debt of USD 3,648,407.00 (Rs.26,40,22,080.32). The debt arose from services provided by Petroserv for transportation and custom clearance of oil rigs. A service contract was entered into between the parties in 2017. Petroserv issued invoices for the services, but John Energy failed to make payments. John Energy acknowledged the debt in a letter dated 19.02.2018. A demand notice was issued by Petroserv on 09.04.2019. John Energy disputed the debt, alleging deficiencies in Petroserv's services, retention of materials in Algeria, and raising concerns about the authenticity

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## Issues and analysis

### Issue 1: Whether the application filed by Petroserv Corporation FZC under Section 9 of the Insolvency and …

**Ratio:** The existence of a genuine dispute regarding the debt precludes the initiation of CIRP

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**Reasoning:** The NCLT found that John Energy Limited had raised several disputes regarding the debt,

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**Interpretation:** Section 9 of the IBC requires the Adjudicating Authority to be satisfied that

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**Application:** In this case, the NCLT found that the disputes raised by John Energy were

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## Parties

- **Judges:** SHAMMI…; SAMEER…
- **Appellants:** Petroserv…
- **Respondents:** John Energy…; John Ener…

## Timeline

- **2021-03-22 — Application…**: Petroserv Corporation FZC filed an…
- **2021-11-26 — Affidavit i…**: Corporate Debtor filed an…

## 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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