# J And K Integrated Textile Park Limited vs. Green Textorium Private Limited

> NCLT judgment dated 2026-07-01. Citation: TCN-2026-NCLT-00725. J And K Integrated Textile Park Limited (Financial Creditor), a Special Purpose Vehicle for the…

- **Court:** NCLT
- **Order date:** 1 Jul 2026
- **Citation:** TCN-2026-NCLT-00725
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/j-and-k-integrated-textile-park-limited-vs-green-textorium-private-limited-yd054

## Summary

### Background

J And K Integrated Textile Park Limited (Financial Creditor), a Special Purpose Vehicle for the Scheme for Integrated Textiles Park (SITP), filed a Section 7 petition under the Insolvency and Bankruptcy Code, 2016 (IBC) against Green Textorium Private Limited (Corporate Debtor) for initiating Corporate Insolvency Resolution Process (CIRP). The Financial Creditor had leased land and extended unsecured loans to the Corporate Debtor for factory construction. The Corporate Debtor defaulted on lease rent, interest, and principal, leading to dishonoured cheques and separate recovery proceedings by Punjab National Bank under the SARFAESI Act.

## Facts

J And K Integrated Textile Park Limited (Financial Creditor) filed CP (IB) No.322/Chd/J&K/2023 under Section 7 of the IBC against Green Textorium Private Limited (Corporate Debtor) for initiating CIRP.

The Financial Creditor is a Special Purpose Vehicle (SPV) incorporated to implement the Scheme for Integrated Textiles Park (SITP) launched by the Government of India, Ministry of Textiles, in 2005.

J&K State Industrial Development Corporation Limited (JKSIDCO) granted a lease of 200 Kanals of land at Industrial Estate, Kathua, to the Financial Creditor by Lease Deed dated 22.03.2012 for 90 years.

The Financial Creditor paid a premium of Rs. 3,00,00,000/- along with advance ground rent for the leased land.

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## Issues and analysis

### Issue 1: Whether the transaction between J And K Integrated Textile Park Limited (Financial Creditor) and …

**Ratio:** The Adjudicating Authority (NCLT) initially held that the transaction did not give rise

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**Reasoning:** The document does not explicitly state the NCLT's reasoning for this initial finding,

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**Interpretation:** The NCLT's initial interpretation of "financial debt" was seemingly

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**Application:** Based on its interpretation, the NCLT applied Section 5(8) to the facts and

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## Parties

- **Judges:** KHETRABASI…; Sh. Shishir…
- **Appellants:** J And K Integrated…
- **Respondents:** GREEN TEXTORIUM…
- **Other parties:** Rajeev S…
- **Advocates:** Vishav Bharti…; Viren S…

## Timeline

- **2005 — Scheme L…**: Scheme for Integrated Textiles Park (SITP) launched by the Government of India, Ministry…
- **2012-03-22 — Lease Deed Ex…**: J&K State Industrial Development Corporation Limited (JKSIDCO) granted a lease of 200…

## 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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