# In the matter of Petronas Lubricants (India) Pvt. Ltd.

> NCLT judgment dated 2024-01-11. Citation: TCN-2024-NCLT-03172. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 11 Jan 2024
- **Citation:** TCN-2024-NCLT-03172
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/petronas-lubricants-india-pvt-ltd-19c4c95a

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) by Piaggio Vehicles Private Limited ("Operational Creditor") to initiate the Corporate Insolvency Resolution Process (CIRP) against Petronas Lubricants (India) Private Limited ("Corporate Debtor"). The application is based on a default in repaying an amount of ₹2,77,99,307/- as of 01.03.2020. The Operational Creditor and the Corporate Debtor had entered into a Supply and Technical and Commercial Collaboration Agreement dated 27.12.2014, wherein the Operational Creditor agreed to purchase products, including lubricants and functional fluids, from the Corporate Debtor. The Corporate Debtor agreed to pay the Operational Creditor an amount

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## Facts

Piaggio Vehicles Pvt. Ltd. (Operational Creditor) filed an application under Section 9 of the IBC against Petronas Lubricants (India) Pvt. Ltd. (Corporate Debtor) for defaulting on a payment of ₹2,77,99,307/- as of 01.03.2020. The two companies had a Supply and Technical and Commercial Collaboration Agreement dated 27.12.2014, where Piaggio would purchase products from Petronas. Petronas was to pay Piaggio 10% of its quarterly net revenue as royalty. The agreement ended on 31.12.2019. Petronas failed to pay the royalty for the fourth quarter of 2019. Piaggio claimed the debt fell due on 01.03.2020, sixty days after the quarter ended. Petronas argued that royalty was only payable after revenue was collected from Piaggio's dealers/sub-dealers/sales and service

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the IBC is maintainable given the existence of a …

**Ratio:** The ratio is based on the Supreme Court's judgment in Mobilox Innovations Private Limited

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**Reasoning:** The court reasoned that the emails exchanged between the parties prior to the issuance of

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**Interpretation:** The interpretation of Section 9 of the IBC, as clarified by the Supreme Court

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**Application:** In this case, the court applied the ratio by examining the emails exchanged

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## Parties

- **Judges:** Charanjeet Singh…; Smt Lakshmi…
- **Appellants:** Piaggio Vehicles…
- **Respondents:** Petronas Lubricant…

## Timeline

- **2014-12-27 — Agreement…**: Piaggio Vehicles Pvt. Ltd. and Petronas Lubricants (India) Pvt. Ltd. entered into a…
- **2019-12-31 — Agreement Ter…**: The Supply and Technical and Commercial Collaboration Agreement between Piaggio Vehicles…

## 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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