# In the matter of INDIAN YARN LIMITED

> NCLT judgment dated 2025-07-17. Citation: TCN-2025-NCLT-01156. Findoc Finvest Private Limited filed an application under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 17 Jul 2025
- **Citation:** TCN-2025-NCLT-01156
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/indian-yarn-limited-5eb082b3

## Summary

### Background

Findoc Finvest Private Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Indian Yarn Limited due to a default of Rs. 1,84,54,577/-. The date of default was 24.08.2023.

## Facts

Findoc Finvest Private Limited, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016.

The Corporate Debtor, Indian Yarn Limited, defaulted on a payment of Rs. 1,84,54,577/-.

The date of default was 24.08.2023.

The Financial Creditor extended a loan facility of Rs. 2,50,00,000/- to the Corporate Debtor.

The Corporate Debtor was required to repay the total amount by 24.03.2024.

The Corporate Debtor defaulted in making payment towards the monthly interest due in August 2023.

A demand notice was issued on 03.05.2024 by the Financial Creditor to the Corporate Debtor.

The applicant proposed the name of Mr. Sumit Sharma as the Interim Resolution Professional.

…

## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted on its …

**Ratio:** The Corporate Debtor defaulted on the repayment of the loan amount as per the terms of

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**Reasoning:** The Corporate Debtor failed to repay the principal amount and interest as per the agreed

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**Interpretation:** The failure to adhere to the repayment schedule constitutes a default under the

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**Application:** The Adjudicating Authority considered the evidence of default, including the

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## Parties

- **Judges:** KHETRABASI…; KAUSHALENDRA…
- **Appellants:** Findoc Finvest…
- **Respondents:** Indian Yarn…
- **Other parties:** Sumit S…

## Timeline

- **04.12.2024 — Application…**: The present Application was filed by…
- **24.08.2023 — Date of D…**: The date of default, as mentioned in Part…

## 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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