The nucleon-nucleon J-matrix inverse scattering potential JISP16 is applied to elastic nucleon-deuteron scattering and the deuteron breakup process at the laboratory nucleon energies up to 135 MeV. The formalism of the Faddeev equations is used to obtain three-nucleon scattering states. We compare predictions based on the JISP16 force with data and with results based on various two-body interactions, including the CD Bonn, the Argonne AV18, the chiral force with the semilocal regularization at the fifth order of the chiral expansion and with low-momentum interactions obtained from the CD Bonn force as well as with the predictions from the combination of the AV18 NN interaction and the Urbana IX 3N force. JISP16 provides a satisfactory description of some observables at low energies but strong deviations from data as well as from standard and chiral potential predictions with increasing energy. However, there are also polarization observables at low energies for which the JISP16 predictions differ from those based on the other forces by a factor of two. The reason for such a behavior can be traced back to the P-wave components of the JISP16 force. At higher energies the deviations can be enhanced by an interference with higher partial waves and by the properties of the JISP16 deuteron wave function. In addition, we compare the energy and angular dependence of predictions based on the JISP16 force with the results of the low-momentum interactions obtained with different values of the momentum cutoff parameter. We found that such low-momentum forces can be employed to interpret the nucleon-deuteron elastic scattering data only below some specific energy which depends on the cutoff parameter. Since JISP16 is defined in a finite oscillator basis, it has properties similar to low momentum interactions and its application to the description of nucleon-deuteron scattering data is limited to a low momentum transfer region.