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

> NCLT judgment dated 2026-07-01. Citation: TCN-2026-NCLT-00720. 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-00720
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/j-and-k-integrated-textile-park-limited-vs-toplon-industries-private-limited-kmynr

## 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, against TOPLON INDUSTRIES PRIVATE LIMITED (Corporate Debtor) to initiate 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 under the Loan Agreement, leading to dishonoured post-dated cheques and recovery proceedings by Punjab National Bank under the SARFAESI Act.

## 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 leased land.

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

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## Issues and analysis

### Issue 1: Whether the transaction between J And K Integrated Textile Park Limited and TOPLON INDUSTRIES …

**Ratio:** The NCLAT held that debt and default were duly proved, thereby establishing that the

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**Reasoning:** The Adjudicating Authority initially rejected the petition, finding no financial debt.

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**Interpretation:** The NCLAT's decision interprets the loan agreements and the Corporate Debtor's

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**Application:** The NCLAT applied Section 7 and Section 5(8) of the IBC to the facts of the

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## Parties

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

## Timeline

- **2005 — SITP Lau…**: 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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