# Sachetna Finance Private Limited vs. Shroff Textiles Limited

> NCLT judgment dated 2026-08-19. Citation: TCN-2026-NCLT-00864. Sachetna Finance Private Limited (Financial Creditor) filed an application under Section 7 of…

- **Court:** NCLT
- **Order date:** 19 Aug 2026
- **Citation:** TCN-2026-NCLT-00864
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/sachetna-finance-private-limited-vs-shroff-textiles-limited-gjf84

## Summary

### Background

Sachetna Finance Private Limited (Financial Creditor) filed an application under Section 7 of the IBC against Shroff Textiles Limited (Corporate Debtor) for initiating CIRP due to an alleged default in repayment of a financial debt of Rs. 6,32,50,000/-. The Financial Creditor had disbursed multiple loans to the Corporate Debtor between 2018 and 2022, which were secured by title deeds and guarantees. Despite rescheduling requests and extensions, the Corporate Debtor defaulted, leading to the account being classified as an NPA on 31.03.2024. An earlier Section 7 application was dismissed with liberty to file a fresh one, excluding amounts falling under the Section 10A moratorium period. The current application claims Rs. 9,75,57,035/- after excluding Section 10A period

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## Facts

Sachetna Finance Private Limited (Financial Creditor) filed C.P. (IB) No.304/MB/2026 under Section 7 of IBC against Shroff Textiles Limited (Corporate Debtor) for an alleged default in repayment of a financial debt of Rs. 6,32,50,000/-.

The alleged date of default is 27.06.2023.

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

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

The disbursements are evidenced by bank statements and a Federal Bank certificate.

Audited financial statements of the Corporate Debtor for FY 2018-19 and FY 2022-23 reflect outstanding debt to the Financial Creditor.

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## Issues and analysis

### Issue 1: Whether the application for initiating CIRP was filed with proper and specific authorization from …

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

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**Reasoning:** The Corporate Debtor argued that the initial Board Resolution was vague. The Financial

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**Interpretation:** The Tribunal found that the subsequent resolution supplemented and ratified any

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**Application:** The objection regarding improper

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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 A…**: Sachetna Finance Private Limited and Shroff Textiles Limited entered into a Loan…
- **2018-10-03 — Repayment of Initial…**: The loan amount of Rs. 63,00,000/- under the 2017 Loan Agreement was repaid by the…

## 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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