NCLT Ahmedabad Admits Kalahridhaan Trendz Into CIRP Over ₹3.26 Crore Default
The Ahmedabad Bench of the National Company Law Tribunal (NCLT) on 14 August admitted Kushal Finnovation Capital Pvt. Ltd.'s insolvency petition against Kalahridhaan Trendz Limited over a default of more than Rs. 3.26 crore under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC).
Judicial Member Chitra Hankare and Technical Member Dr VG Venakata Chalapathy held that insolvency proceedings can be initiated where a financial debt is due and payable, the default exceeds the threshold prescribed under the IBC, and the petition is filed within limitation. The Bench held:
“The relevant criteria for admitting this debt is whether the debt is due, defaulted. The amount of Debt is more than the threshold limit with interest due and payable.”
Kalahridhaan Trendz Limited, incorporated in May 2016, had availed a structured invoice financing facility of Rs. 2 crore from Kushal Finnovation Capital in February 2024. The facility carried interest at 18% per annum and penal charges of 3% per month on overdue amounts. The security included cash collateral, demand promissory notes, personal guarantees from directors and undated cheques.
Between 6 May and 17 May 2024, Kalahridhaan Trendz submitted 26 invoices from Shree Maruti Enterprise, against which Kushal Finnovation Capital disbursed Rs. 1.81 crore. Repayment fell due between 4 August and 15 August 2024.
However, Kalahridhaan Trendz failed to make the payments. Kushal Finnovation Capital issued a recall notice on 3 October 2024. Cheques subsequently deposited by the financial creditor were returned with the remark “Account Closed.”
Kalahridhaan Trendz opposed the petition, contending that it was misconceived, premature and barred by limitation. It also alleged suppression of material facts and lack of proper Board authorisation for filing the petition.
The corporate debtor further relied on earlier insolvency proceedings involving similar financing arrangements, where the Tribunal had raised concerns regarding the structure of the transaction. It contended that Kushal Finnovation Capital had failed to disclose the complete commercial arrangement, including the source of funds and ledger trail.
Kushal Finnovation Capital denied the allegations and submitted that the petition had been duly authorised by a Board Resolution dated 9 December 2025.
The Bench noted that Kalahridhaan Trendz had executed promissory notes, guarantees and cheques, none of which had been specifically denied. It further found that the petition was filed within limitation and that the debt was due and payable, with the default exceeding the threshold prescribed under the IBC.
Accordingly, the NCLT admitted Kalahridhaan Trendz Limited into the Corporate Insolvency Resolution Process (CIRP) under Section 7 of the IBC and appointed Chirag Rajendrakumar Shah as the Interim Resolution Professional (IRP).
For Applicants: Senior Advocate Amar Bhatt with Advocate Kunal Vaishnav
For Respondents: Advocate Sunil Bhavsar