# Sachetna Finance Private Limited vs. Shroff Textiles Limited

> NCLT judgment dated 2026-08-19. Citation: TCN-2026-NCLT-00886. Sachetna Finance Private Limited (Financial Creditor) filed an application under Section 7 of…

- **Court:** NCLT
- **Order date:** 19 Aug 2026
- **Citation:** TCN-2026-NCLT-00886
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/sachetna-finance-private-limited-vs-shroff-textiles-limited-80v2o

## Summary

### Background

Sachetna Finance Private Limited (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Shroff Textiles Limited (Corporate Debtor) due to an alleged default in repayment of a financial debt amounting to Rs. 6,32,50,000/- (principal). An earlier application was dismissed because it included defaults falling within the Section 10A moratorium period. The current application was filed after excluding these amounts, as per the liberty granted by the Tribunal.

## Facts

C.P. (IB) No.304/MB/2026 (Application) was filed on 23.03.2026 under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016.

Sachetna Finance Private Limited (Financial Creditor) initiated CIRP against M/s Shroff Textiles Limited (Corporate Debtor) for an alleged default in repayment of financial debt of Rs. 6,32,50,000/- (principal amount).

The date of default, as given in Part IV of the Application, is 27.06.2023.

Mr. Hemant J. Mehta was proposed as the Interim Resolution Professional (IRP).

The Financial Creditor disbursed various loan amounts to the Corporate Debtor between October 11, 2018, and June 27, 2022, totaling Rs. 6,32,50,000/- (principal).

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## Issues and analysis

### Issue 1: Whether the application for CIRP is maintainable despite the Corporate Debtor's objections …

**Ratio:** A specific and valid authorization from the Board of Directors is required to initiate

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**Reasoning:** The Corporate Debtor initially objected that the Board Resolution relied upon by the

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**Interpretation:** The Tribunal interpreted that even if the original Board Resolution required

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**Application:** The Corporate Debtor's objection regarding improper authorization was rejected,

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## Parties

- **Judges:** NILESH S…; SAMEER…
- **Appellants:** Sachetna Finance…
- **Respondents:** Shroff Textiles…
- **Other parties:** Shrenik Dhirajlal…; Aashok Laxminaraya…; +1 more
- **Advocates:** Sharad B…; Sonesh…; +3 more

## Timeline

- **2017-09-19 — Initial Loan Agreement…**: Sachetna Finance Private Limited and Shroff Textiles Limited entered into a Loan…
- **2018-10-03 — Repayment of Initial…**: The Corporate Debtor repaid the Rs.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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