NCLT Ahmedabad Admits Sharanam Infraproject To CIRP Over ₹10.35 Crore Debt, Rejects Restructuring Plea

The order was passed by the bench of Judicial Member Chitra Hankare and Technical Member Dr V. G. Venkatachalapathy.

The bench observed, “A restructuring proposal sought by respondent cannot be the reason for rejecting the application. Further, respondent's ledger and audited financial statements confirm the debt due.”

Maruti Corporation, a sole proprietorship, entered into a supply agreement dated 22 October 2024 with Sharanam Infraproject. Pursuant to this agreement, the operational creditor supplied agricultural and ancillary products between 2 December and 24 December 2024.

Invoices were raised for each consignment, and post-dated cheques were issued by the corporate debtor towards payment. However, by letter dated 25 December 2025, Sharanam Infraproject acknowledged its liability of Rs 10.35 crore, comprising principal of Rs 8.72 crore and interest of Rs 1.62 crore, but requested the creditor not to deposit the cheques due to liquidity constraints and adverse business conditions.

Despite issuance of a demand notice on 17 January 2026, the debt remained unpaid.The operational creditor relied on documentary evidence including the supply agreement, invoices, transport receipts, cheques, the debtor's acknowledgement letter etc..

It argued that the debt was undisputed, admitted by the debtor, and corroborated by the debtor's own financial records, including audited statements. The applicant further submitted that the debtor's plea for reasonable time for restructuring or improving its liquidity did not constitute a valid defence under Section 9 of the Code.

In its reply, Sharanam Infraproject admitted the supplies and issuance of cheques but cited severe cash-flow constraints and liabilities towards multiple creditors. It argued that the request not to present cheques was temporary and not a repudiation of debt.

The debtor claimed to be negotiating restructuring arrangements and sought reasonable time to resolve its dues. However, it did not place any concrete repayment proposal or schedule before the Tribunal.

The NCLT, after hearing both sides and perusing the documents, observed that the application was within limitation, the debt was admitted, and default had occurred. It noted that post-dated cheques were withheld due to liquidity crunch.

The Tribunal emphasised that the debtor's own ledger and audited financial statements confirmed the outstanding liability. It held that restructuring proposals cannot be a ground for rejection of an insolvency petition.

Accordingly, the Tribunal allowed the petition and admitted Sharanam Infraproject into CIRP and imposed a moratorium. Further, the bench appointed Amrish Navinchandra Gandhi, a registered insolvency professional, as Interim Resolution Professional (IRP).

For Applicants: Advocates Prutha Bhavsar, V. Pandu Ranga Reddy

For Respondents: Advocates Anmol Giri and Pradyumn Yadav