# J And K Integrated Textile Park Limited vs. SILKLON PROCESSORS PRIVATE LIMITED

> NCLT judgment dated 2026-07-01. Citation: TCN-2026-NCLT-00723. J&K Integrated Textile Park Limited (Financial Creditor) filed a Section 7 IBC petition against…

- **Court:** NCLT
- **Order date:** 1 Jul 2026
- **Citation:** TCN-2026-NCLT-00723
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/j-and-k-integrated-textile-park-limited-vs-silklon-processors-private-limited-9ockq

## Summary

### Background

J&K Integrated Textile Park Limited (Financial Creditor) filed a Section 7 IBC petition against SILKLON PROCESSORS PRIVATE LIMITED (Corporate Debtor) due to defaults on unsecured loans and lease rent. The NCLT initially dismissed the petition, ruling no financial debt existed.

## Facts

J&K Integrated Textile Park Limited (Financial Creditor) filed CP (IB) No.309/Chd/J&K/2023 under Section 7 of the IBC against SILKLON PROCESSORS PRIVATE LIMITED (Corporate Debtor).

The Financial Creditor is a Special Purpose Vehicle 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 at Industrial Estate, Kathua, to the Financial Creditor by Lease Deed dated 22.03.2012, for a premium of Rs. 3,00,00,000/-.

Tripartite Agreements were executed in May 2017 among JKSIDCO, the Financial Creditor, and industrial units, including the Corporate Debtor.

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## Issues and analysis

### Issue 1: Whether the transaction between J&K Integrated Textile Park Limited and SILKLON PROCESSORS …

**Ratio:** The NCLAT determined that the transactions, specifically unsecured loans for factory

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**Reasoning:** The NCLT initially dismissed the petition, concluding that the transaction did not give

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**Interpretation:** The NCLAT interpreted Section 5(8) broadly to include the unsecured loans

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**Application:** The NCLAT applied Section 5(8) to the specific facts of the loan agreements and

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## Parties

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