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

> NCLT judgment dated 2024-01-11. Citation: TCN-2024-NCLT-03179. Piaggio Vehicles Pvt. Ltd. (Operational Creditor) filed an application under Section 9 of the…

- **Court:** NCLT
- **Order date:** 11 Jan 2024
- **Citation:** TCN-2024-NCLT-03179
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/petronas-lubricants-india-pvt-ltd-4bbcc9c4

## Summary

### Background

Piaggio Vehicles Pvt. Ltd. (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Petronas Lubricants (India) Pvt. Ltd. (Corporate Debtor) for defaulting on a payment of ₹2,77,99,307/- as of 01.03.2020. The dispute arose from a Supply and Technical and Commercial Collaboration Agreement dated 27.12.2014, where the Corporate Debtor was to pay royalty to the Operational Creditor based on a percentage of net revenue. The Corporate Debtor claimed that the royalty payment was contingent on the collection of revenues from the Operational Creditor's

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## Facts

Piaggio Vehicles Pvt. Ltd. (Operational Creditor) and Petronas Lubricants (India) Pvt. Ltd. (Corporate Debtor) entered into a Supply and Technical and Commercial Collaboration Agreement on 27.12.2014. Under the agreement, the Corporate Debtor was to pay the Operational Creditor a royalty equivalent to 10% of its quarterly net revenue, exclusive of taxes and levies, for the promotion and sale of products. The agreement was valid from 01.01.2015 to 31.12.2019. The Corporate Debtor allegedly failed to pay the royalty for the fourth quarter of 2019 (October to December). The Operational Creditor claimed that ₹2,77,99,307/- was due as of 01.03.2020. The Corporate Debtor acknowledged the debt but argued that the royalty payment was contingent on the collection of revenues

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the IBC is …

**Ratio:** The ratio is based on the judgment of the Hon'ble Supreme Court in Mobilox Innovations

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

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**Interpretation:** The interpretation of Section 9(5)(ii)(d) of the IBC, as clarified by the

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**Application:** In this case, the court applied the ratio of Mobilox Innovations to the facts

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## Parties

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

## Timeline

- **2014-12-27 — Agreement…**: Supply and Technical and Commercial Collaboration Agreement signed between Piaggio…
- **2015-01-01 — Agreement Sta…**: Effective date of the Supply and Technical…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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