# Bank of Baroda vs. Nextgen Textile Park Private Limited

> NCLT judgment dated 2026-07-23. Citation: TCN-2026-NCLT-00630. Bank of Baroda, the Financial Creditor, filed an application under Section 7 of the Insolvency…

- **Court:** NCLT
- **Order date:** 23 Jul 2026
- **Citation:** TCN-2026-NCLT-00630
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-new-delhi/bank-of-baroda-vs-nextgen-textile-park-private-limited-6jw5a

## Summary

### Background

Bank of Baroda, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Nextgen Textile Park Pvt. Ltd., the Corporate Debtor. The application alleges a default of Rs. 36,87,73,542/- as of August 25, 2025, stemming from various loan facilities sanctioned between 2018 and 2020. The Corporate Debtor's account was classified as a Non-Performing Asset (NPA) on July 29, 2022, and despite notices under the SARFAESI Act and an One-Time Settlement (OTS) proposal from the Corporate Debtor (which was rejected), the default continued.

## Facts

Bank of Baroda filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of CIRP against M/s. Nextgen Textile Park Pvt. Ltd.

The alleged default amount is Rs. 36,87,73,542/- as on 25.08.2025.

The Corporate Debtor's account was classified as a Non-Performing Asset (NPA) on 29.07.2022.

The Financial Creditor issued notices under Section 13(2) of the SARFAESI Act, 2002, to the Corporate Debtor on 03.08.2022, recalling the entire outstanding amount of Rs 25,86,08,099.67/- as on 02.08.2022.

The Corporate Debtor failed to pay the demanded amount by 03.10.2022, which is the date of default.

The default continues till date.

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## Issues and analysis

### Issue 1: Whether a financial debt is due and payable and whether a default has occurred, as required under …

**Ratio:** The test for admitting an application under Section 7 of the Insolvency and Bankruptcy

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**Reasoning:** The Adjudicating Authority's scope of inquiry for admission of an insolvency process by a

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**Interpretation:** Section 7 of the IBC mandates a summary inquiry into the existence of debt and

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**Application:** In the present case, the Applicant/Financial Creditor provided documentary

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## Parties

- **Judges:** BACHU VENKAT…; RAVINDRA CHATURVED…
- **Appellants:** Bank of B…
- **Respondents:** Nextgen Textile…
- **Other parties:** Rahul J…
- **Advocates:** R. Gayathri…; Navneet…; +1 more

## Timeline

- **2018-01-15 — Loan San…**: Loan facilities sanctioned for Rs. 1000 Lakhs (Account No. 22750600001210) and Rs. 300…
- **2019-03-28 — Credit Facility…**: Credit facilities sanctioned for Rs. 1500…

## 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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