# In the matter of Essel Homes Private Limited

> NCLT judgment dated 2024-04-25. Citation: TCN-2024-NCLT-01586. Indiabulls Housing Finance Limited filed a Company Petition (IB)-248(MB)/2022 under Section 7…

- **Court:** NCLT
- **Order date:** 25 Apr 2024
- **Citation:** TCN-2024-NCLT-01586
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/essel-homes-private-limited-198568e4

## Summary

### Background

Indiabulls Housing Finance Limited filed a Company Petition (IB)-248(MB)/2022 under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Essel Homes Private Limited due to a default of Rs. 2,60,98,26,700/-. The loan was originally sanctioned to Gnex Realtech Private Limited, with Essel Homes Private Limited acting as a co-borrower and guarantor. The financial creditor claimed default in repayment, leading to the petition.

## Facts

Indiabulls Housing Finance Limited sanctioned a loan of Rs. 190,00,00,000/- to M/s Gnex Realtech Private Limited, with Essel Homes Private Limited acting as a co-borrower. The loan agreement was dated 03.06.2020. The loan facility was secured by pledging 2,16,00,050 equity shares of M/s. Gnex Realtech Private Limited to the Petitioner vide pledge agreement dated 10.09.2020. The entire amount was disbursed on 23.06.2020. Essel Homes Private Limited failed to pay the interest and/or principal, leading to a default. The account was classified as a Non-Performing Asset (NPA) on 30.09.2021. A notice was issued on 20.01.2022. The total default amount was Rs. 2,60,98,26,700 as of January 28, 2022. The Corporate Debtor argued that the debt was disbursed to Gnex, not them, and

…

## 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

…

**Reasoning:** The court considered the loan agreement, repayment schedules, statement of account, and

…

**Interpretation:** Section 7(3)(a) of the Code allows the financial creditor to furnish a record

…

**Application:** The court found that the financial creditor had provided sufficient evidence,

…

## Parties

- **Judges:** Charanjeet Singh…; Smt Lakshmi…
- **Appellants:** Indiabulls…
- **Respondents:** Essel Homes…

## Timeline

- **2020-03-06 — Loan Agreeme…**: The parties entered…
- **2020-06-03 — Loan Sancti…**: The Petitioner had sanctioned a…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(7) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/essel-homes-private-limited-198568e4