# J And K Integrated Textile Park Limited vs. JYOTSNA INDUSTRIES PRIVATE LIMITED

> NCLT judgment dated 2026-07-01. Citation: TCN-2026-NCLT-00718. J&K Integrated Textile Park Limited (Financial Creditor) filed a Section 7 petition under the…

- **Court:** NCLT
- **Order date:** 1 Jul 2026
- **Citation:** TCN-2026-NCLT-00718
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/j-and-k-integrated-textile-park-limited-vs-jyotsna-industries-private-limited-6awuj

## Summary

### Background

J&K Integrated Textile Park Limited (Financial Creditor) filed a Section 7 petition under the IBC against JYOTSNA INDUSTRIES PRIVATE LIMITED (Corporate Debtor) due to defaults on lease rent, interest, and loan principal. The NCLT initially rejected the petition on 08.01.2025, holding that the transaction did not give rise to a financial debt. The Financial Creditor challenged this order before the NCLAT.

## Facts

J And K Integrated Textile Park Limited (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 a period of 90 years.

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

A Memorandum of Agreement was executed with the Government of India for the development of the project.

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## Issues and analysis

### Issue 1: Whether the present Petition should be admitted into Corporate Insolvency Resolution Process (CIRP) …

**Ratio:** The NCLAT's judgment established that debt and default were duly proved, thereby

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**Reasoning:** The Adjudicating Authority (NCLT) is bound by the directions of the Hon'ble NCLAT, which

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**Interpretation:** The NCLAT's decision clarified the nature of the transaction as a financial

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**Application:** In compliance with the NCLAT's binding directions, the Adjudicating Authority

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## Parties

- **Judges:** KHETRABASI…; Sh. Shishir…
- **Appellants:** J And K Integrated…
- **Respondents:** JYOTSNA INDUSTRIES…
- **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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