# J And K Integrated Textile Park Limited vs. J AND K TEXTORIUM PRIVATE LIMITED

> NCLT judgment dated 2026-07-01. Citation: TCN-2026-NCLT-00719. J And K Integrated Textile Park Limited (Financial Creditor) filed a Section 7 petition under…

- **Court:** NCLT
- **Order date:** 1 Jul 2026
- **Citation:** TCN-2026-NCLT-00719
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/j-and-k-integrated-textile-park-limited-vs-j-and-k-textorium-private-limited-kbh0m

## Summary

### Background

J And K Integrated Textile Park Limited (Financial Creditor) filed a Section 7 petition under the Insolvency and Bankruptcy Code, 2016, against J AND K TEXTORIUM PRIVATE LIMITED (Corporate Debtor) for initiating Corporate Insolvency Resolution Process (CIRP). The Financial Creditor, a Special Purpose Vehicle for the Scheme for Integrated Textiles Park (SITP), had leased land and extended unsecured loans to the Corporate Debtor for factory construction. The Corporate Debtor defaulted on lease rent, interest, and loan principal, leading to recall notices and dishonoured cheques.

## Facts

J And K Integrated Textile Park Limited (Financial Creditor) filed CP (IB) No.310/Chd/J&K/2023 under Section 7 of the IBC against J And K Textorium Private Limited (Corporate Debtor).

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 in 2005.

J&K State Industrial Development Corporation Limited (JKSIDCO) granted a 90-year lease of 200 Kanals of land to the Financial Creditor via a Lease Deed dated March 22, 2012.

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 the parties gave rise to a financial debt within the meaning of …

**Ratio:** The NCLAT held that the transaction between the Financial Creditor and Corporate Debtor

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**Reasoning:** The NCLAT's decision implies that the unsecured loans extended by the Financial Creditor

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**Interpretation:** Section 5(8) of the IBC defines 'financial debt' broadly. The NCLAT's ruling

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**Application:** The NCLAT applied Section 5(8) to the specific facts of the case, concluding

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## Parties

- **Judges:** KHETRABASI…; Sh. Shishir…
- **Appellants:** J And K Integrated…
- **Respondents:** J AND K 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,…
- **2012-03-22 — Lease Deed Ex…**: Lease Deed dated 22.03.2012 executed between J&K State Industrial Development Corporation…

## 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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