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

> NCLT judgment dated 2026-07-01. Citation: TCN-2026-NCLT-00724. 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-00724
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/j-and-k-integrated-textile-park-limited-vs-silklon-synthetic-private-limited-y82kz

## Summary

### Background

J And K Integrated Textile Park Limited (Financial Creditor), a Special Purpose Vehicle for the SITP scheme, filed a Section 7 petition under the IBC against SILKLON SYNTHETIC PRIVATE LIMITED (Corporate Debtor) due to defaults on unsecured loans provided for factory construction and lease rent.

## Facts

J And K Integrated Textile Park Limited (Financial Creditor) is a Special Purpose Vehicle 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, in favour of 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 transaction between the Financial Creditor and the Corporate Debtor constitutes a …

**Ratio:** The NCLAT, in its common judgment, held that debt and default were duly proved, implying

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**Reasoning:** The initial Adjudicating Authority rejected the petition stating no financial debt.

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**Interpretation:** The NCLAT's decision overrides the initial Adjudicating Authority's

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**Application:** The Adjudicating Authority, in compliance with NCLAT's directions, proceeded

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## Parties

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

## Timeline

- **2005 — SITP Scheme…**: Scheme for Integrated Textiles Park (SITP) launched by the Government of India, Ministry…
- **2012-03-22 — Lease Deed Ex…**: JKSIDCO granted a 90-year lease of 200 Kanals of land to J&K Integrated Textile Park…

## 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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