# In the matter of SIF GARMENTS PRIVATE LIMITED

> NCLT judgment dated 2025-09-15. Citation: TCN-2025-NCLT-01448. The case involves a petition filed by SIL Fibres Private Limited (Financial Creditor) under…

- **Court:** NCLT
- **Order date:** 15 Sept 2025
- **Citation:** TCN-2025-NCLT-01448
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-new-delhi/sif-garments-private-limited-3b9d6147

## Summary

### Background

The case involves a petition filed by SIL Fibres Private Limited (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against SIF Garments Private Limited (Corporate Debtor) due to a default in repayment of a loan.

## Facts

SIL Fibres Private Limited (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against SIF Garments Private Limited (Corporate Debtor).

A loan agreement was entered into between the Applicant and the Respondent on 22.10.2018 for Rs. 1,00,00,000/-.

The Respondent requested and received an additional loan of Rs. 4,00,000/- from the Applicant on 21.06.2021.

The Respondent made a payment of Rs. 30,00,000/- on 13.08.2021 towards repayment of the loan amount.

An addendum to the loan agreement was signed on 01.04.2023, stipulating an interest rate of 12% per annum and a repayment deadline of 31.03.2024.

…

## Issues and analysis

### Issue 1: Whether the petition falls within the ambit of Section 7 of the Insolvency and Bankruptcy Code, …

**Ratio:** The Adjudicating Authority must determine if a financial debt exists and if a default has

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**Reasoning:** The Adjudicating Authority examined the loan agreement, addendum, and bank statements to

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**Interpretation:** Section 7 allows a financial creditor to initiate CIRP against a corporate

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**Application:** The Adjudicating Authority found that the Financial Creditor had substantiated

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## Parties

- **Judges:** MAHENDRA KHANDELWA…; Anu Jagmoha…
- **Appellants:** SIL FIBRES…
- **Respondents:** SIF GARMENTS…
- **Other parties:** Resurgent…
- **Advocates:** Ajay Kanojiya…; Abhishek…

## Timeline

- **22.10.2018 — Loan Agre…**: Loan agreement entered into between the Applicant and the Respondent for Rs.…
- **21.06.2021 — Additiona…**: The Respondent received an additional loan…

## 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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