NCLT Chennai Admits Insolvency Plea Against Pradhin Limited Over ₹12.98 Crore Default

The National Company Law Tribunal (NCLT) at Chennai has admitted an insolvency petition against Pradhin Limited after finding that the financial creditor had established the existence of a financial debt and default of ₹12.98 crore. The shares of Pradhin Limited are listed on Bombay Stock Exchange Limited.

The tribunal initiated the Corporate Insolvency Resolution Process against the company and appointed Rajesh Jasti as the interim resolution professional.

A coram of Judicial Member Sanjiv Jain and Technical Member Venkataraman Subramaniam was hearing a petition filed by Tatad Nayan Gautambhai seeking initiation of CIRP against Pradhin Limited.

The petition arose from a loan agreement, under which the Financial Creditor extended an unsecured loan of ₹11 crore carrying 18% interest, of which ₹10.83 crore was disbursed. The loan was repayable by September 30, 2025. The Corporate Debtor later requested the Financial Creditor not to present the post dated cheques issued towards repayment, citing financial difficulties, while acknowledging an outstanding liability of ₹12.98 crore.

Opposing the petition, Pradhin Limited contended that it was facing temporary financial stress, was taking steps to raise funds for revival, and that initiation of CIRP would frustrate its efforts to revive the company.

The Tribunal observed that the Corporate Debtor had not disputed either the debt or its liability to repay. It noted that the repayment obligation crystallised on September 30, 2025, and that the company had subsequently acknowledged the outstanding liability of ₹12.98 crore in its letter dated November 5, 2025.

“…. despite having entered into the loan agreement containing the terms of repayment, the Corporate Debtor committed the default in repayment which made the Petitioner initiate the CIRP against the Corporate Debtor.” it observed

Relying on precedents, the tribunal reiterated that in a Section 7 proceeding, the Adjudicating Authority is only required to determine whether a financial debt exists and whether a default has occurred.

Accordingly, the tribunal admitted the petition, commenced CIRP against Pradhin Limited, declared the statutory moratorium under Section 14 of the IBC, and appointed Rajesh Jasti as the Interim Resolution Professional.

For Petitioner: Advocate Bhagavath Krishnan

For Respondent: Advocate P Srikanth Rao