# In the matter of Runwal Realtors Private Limited

> NCLT judgment dated 2025-02-06. Citation: TCN-2025-NCLT-00519. Bridge & Building Construction Co. Pvt. Ltd., the Applicant/Financial Creditor, filed an…

- **Court:** NCLT
- **Order date:** 6 Feb 2025
- **Citation:** TCN-2025-NCLT-00519
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/runwal-realtors-private-limited-0930cffd

## Summary

### Background

Bridge & Building Construction Co. Pvt. Ltd., the Applicant/Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Runwal Realtors Private Limited, the Respondent/Corporate Debtor. The application stemmed from a Joint Venture Agreement (JVA) entered into between the parties on 2017-01-12 to develop and construct 'Runwal Manjari Township'. The Applicant/Financial Creditor invested Rs.2,59,78,540/- out of a proposed Rs.4,85,00,000/-, but the Corporate Debtor allegedly remained silent on project updates, leading the Applicant to seek a refund. The Corporate Debtor claimed the amount was a joint venture contribution, not a loan, and that the Applicant

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## Facts

Bridge & Building Construction Co. Pvt. Ltd. (Applicant/Financial Creditor) and Runwal Realtors Private Limited (Respondent/Corporate Debtor) entered into a Joint Venture Agreement (JVA) on 2017-01-12 to develop 'Runwal Manjari Township' on 2.75 acres of land in Pune. The Applicant agreed to invest Rs.4,85,00,000/-, with Rs.2,60,00,000/- as an advance payment upon execution of the JVA and the remaining Rs.2,25,00,000/- within six months. The Applicant paid Rs.2,59,78,540/- between 2017-05-19 and 2017-06-13. The Corporate Debtor allegedly failed to provide project updates, leading the Applicant to stop further payments and seek a refund via a letter dated 2018-08-18. The Corporate Debtor responded on 2018-10-05, claiming the amount was a joint venture contribution

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## Issues and analysis

### Issue 1: Whether the debt owed by the Respondent/Corporate Debtor to the Applicant/Financial Creditor …

**Ratio:** The essential test to determine whether a debt is a financial debt under Section 5(8) of

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**Reasoning:** The NCLT reasoned that the amount invested by the Applicant was not disbursed against

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**Interpretation:** Section 5(8) of the IBC defines 'financial debt'. The interpretation hinges on

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**Application:** In this case, the NCLT found that the investment was a joint venture

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## Parties

- **Judges:** K. R. SAJI…; SANJIV…
- **Appellants:** Bridge & Building…
- **Respondents:** Runwal Realtors…

## Timeline

- **2017-01-12 — Joint Venture…**: The Corporate Debtor and the Applicant/Financial Creditor entered into a Joint Venture…
- **2017-05-19 — Payment by Ap…**: The Applicant/Financial Creditor paid an ad hoc amount of Rs.2,59,78,540/- to the…

## 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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