# In the matter of Runwal Realtors Private Limited CP (IB) 954-MB-C-I-2019

> NCLT judgment dated 2022-06-10. Citation: TCN-2022-NCLT-02297. Gateway Offshore Private Limited and Goodhope Software Private Limited, the Financial…

- **Court:** NCLT
- **Order date:** 10 Jun 2022
- **Citation:** TCN-2022-NCLT-02297
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/runwal-realtors-private-limited-cp-ib-954-mb-c-i-2019-a63c0453

## Summary

### Background

Gateway Offshore Private Limited and Goodhope Software Private Limited, the Financial Creditors, filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Runwal Realtors Private Limited, the Corporate Debtor. The petition was filed on 05.03.2019, claiming that the Corporate Debtor defaulted on a loan of Rs.4,43,00,000/- advanced by the Financial Creditors, along with interest at 9% p.a. The total amount claimed to be in default was Rs.5,02,80,500/- as of 03.07.2018.

## Facts

Gateway Offshore Private Limited and Goodhope Software Private Limited (Financial Creditors) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Runwal Realtors Private Limited (Corporate Debtor) seeking to initiate CIRP. The Financial Creditors claimed that they had advanced a loan of Rs.4,43,00,000/- to the Corporate Debtor in June 2017, with interest at 9% p.a., for business expansion. The total amount in default was Rs.5,02,80,500/- as of 03.07.2018. The Corporate Debtor argued that the amount was disbursed for joint development of land and that there was no written loan agreement. The Corporate Debtor also relied on the Supreme Court's judgment in Swiss Ribbons vs Union of India, arguing that the absence of documentary evidence or

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 is maintainable …

**Ratio:** A written contract is not an essential element to prove the existence of financial debt,

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**Reasoning:** The NCLT relied on the NCLAT's decision in Narendra Kumar Agarwal and Ors. v Monotrone

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**Interpretation:** While a written contract is not strictly required, the Financial Creditor must

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**Application:** In this case, the Financial Creditor failed to provide any evidence in the form

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## Parties

- **Judges:** P.N. Des…; K.K. V…
- **Appellants:** Gateway Offshore…
- **Respondents:** Runwal Realtors…

## Timeline

- **1993-06-10 — Incorporation of…**: Runwal Realtors Private Limited…
- **2017-06-01 — Loan Disbur…**: Financial Creditors disbursed a loan of Rs.4,43,00,000/- to the Corporate Debtor in…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(8) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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