# In the matter of Dhruvi Properties Private Limited

> NCLT judgment dated 2023-12-15. Citation: TCN-2023-NCLT-00221. The case pertains to a petition filed by M/s. Wellworth Apparels Private Limited, the Financial…

- **Court:** NCLT
- **Order date:** 15 Dec 2023
- **Citation:** TCN-2023-NCLT-00221
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/dhruvi-properties-private-limited-34596d8c

## Summary

### Background

The case pertains to a petition filed by M/s. Wellworth Apparels Private Limited, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Dhruvi Properties Private Limited, the Corporate Debtor, for default in repayment of a loan of Rs. 2,00,00,000. The Corporate Debtor had approached the Financial Creditor for the loan in 2016 for expansion in real estate business. The Financial Creditor disbursed the amount in two tranches in July and August 2016. A Demand Promissory Note was executed in August 2016. Despite multiple requests and extensions, including a Memorandum of Understanding in March 2022, the Corporate Debtor failed to repay the loan. The Financial Creditor

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## Facts

M/s. Wellworth Apparels Private Limited (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Dhruvi Properties Private Limited (Corporate Debtor) due to a default in loan repayment. The Corporate Debtor had requested a loan of Rs. 2,00,00,000 from the Financial Creditor on 18.04.2016 for real estate business expansion. The Financial Creditor disbursed Rs. 1,00,00,000 on 27.07.2016 and another Rs. 1,00,00,000 on 03.08.2016. A Demand Promissory Note (DPN) was executed on 04.08.2016, with an interest rate of 22% p.a. compounded quarterly. The Financial Creditor requested repayment on 30.03.2021, but the Corporate Debtor expressed regret on 05.04.2021 and

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## Issues and analysis

### Issue 1: Whether the Financial Creditor has proven the …

**Ratio:** The adjudicating authority must be satisfied that a default has occurred based on records

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**Reasoning:** The court relied on the judgment in Innoventive Industries Limited vs. ICICI Bank and

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**Interpretation:** The Supreme Court's ruling in Innoventive Industries Ltd. clarifies that the

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**Application:** The Financial Creditor provided documents such as the loan request letter,

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## Parties

- **Judges:** Charanjeet Singh…; Smt Lakshmi…
- **Appellants:** M/s. Wellworth…
- **Respondents:** M/s. Dhruvi…

## Timeline

- **2016-04-18 — Loan Req…**: Corporate Debtor requested a loan of Rs.…
- **2016-07-27 — First Disbu…**: Financial Creditor disbursed Rs.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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