The initiation of Corporate Insolvency Resolution Process (CIRP) under Section 7 of the IBC is permissible when the financial creditor provides sufficient evidence of a due and defaulted financial debt, regardless of general denials by the corporate debtor.

This case is fixed for pronouncement of order The order is pronounced in open court vide separate sheet.

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DR. V. G. VENKATA CHALAPATHY CHITRA HANKARE

MEMBER (TECHNICAL) MEMBER (JUDICIAL)

SJ/ AP

BEFORE THE ADJUDICATING AUTHORITY NATIONAL COMPANY LAW TRIBUNAL AHMEDABAD BENCH

COURT-II, CP (IB)16(AHM)2026

(under Section 7 of the Insolvency and Bankruptcy Code, 2016 r/w Rule 4 of Insolvency and Bankruptcy Application to Adjudicating Authority Rules 2016)

KUSHAL FINNOVATION CAPITAL PRIVATEL LIMITED

Registered Office Address:

Condor Vista #5, Ground Floor, Near Anjappar Chettinad Restaurant,

4th Block, 100 FT Road, Koramangala,

Bangalore 560034 ...Financial Creditor

Versus

KALAHRIDHAAN TRENDZ LIMITED Registered Office Address: 57 Ashra Industrial State

B/h Mahalaxmi Fabrics, Near Narol Cross Road,

Ahmedabad- Gujarat-382405 ... Corporate Debtor

Order pronounced on 14/08/2026

Coram:

MRS.CHITRA HANKARE MEMBER (JUDICIAL)

DR.VELAMUR G VENKATA CHALAPATHY MEMBER (TECHNICAL)

Appearance:

For the Financial Creditor: Mr. Amar Bhatt, Sr. Adv.

Mr. Kunal Vaishnav, Adv.

For the Corporate Debtor : Mr. Sunil Bhavsar, Adv.

JUDGMENT

The present petition is filed by Kushal Finnovation Capital Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to “as the code”) for initiation of Corporate Insolvency Resolution Process (hereinafter referred to as “CIRP”) against the Corporate Debtor i.e. Kalahridhaan Trendz Limited for total amount in default of Rs. 3,26,46,08/4- . The date of default is 03.10.2024.

Perusal of Part-I of the Form-1 indicates that the Petitioner/Financial Creditor is a financial Institution. The registered office of the Financial Creditor is situated at Condor Vista #5, 2nd Floor, Block 2A Left wing, Near Anjapar Chettinad Restaurant, 4t B Block, 100 FT Road, Koramangala, Bangalore South, Karnataka, India-560034. Perusal of Part-II it reveals that the Corporate Debtor was incorporated on 27.05.2016. Nominal Share Capital Rs. 18,00,00,000/- and paid up share capital of Rs. 17,18,70,000/-. The registered office of the Corporate Debtor is situated at 57 , Ashra Industrial Estate, Narol, Ahmedabad, Gujarat-382405.

Perusal of Part-IlI of the Form-1 reveals that the Petitioher/Financial Creditor has nominated Mr. Ritesh Prakash Adatiya, CA having Registration No. IBBI/IPE- 0010/IPA-212022-23/51J021 (Email: ritesh@npvca.-in) to act as Interim Resolution Professional (“IRP”). He has filed his written communication annexed with the Application as per the requirement of Rule 9(1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016.

Perusal of Part-IV of the Form-1 reveals that the :

a. Financial Creditor granted an “SCF-Single Borrower (Invoice deduction)” facility of Rs. 2 Crores to thé Corporate Debtor under the sanction letter/loan agreement dated 14.02.2024. Facility Tenure: 12 months, Cycle Duration : 90 days, Interest rate: 18% p.a. penal charges: 3% p.a. per month on overdue amount.

The Corporate Debtor has created /executed the following security documents:

i. Deposit of cash collateral equipment to 10% of the sanctioned loan with the Financial Creditor being the beneficiary for the tenure of the Invoice Financing Facility or until the entire amount due and payable under the Loan is paid , whichever is later.

ii. Demand Promissory Note dated 14.02.2024 in favour of the Financial Creditor for 100% of the sanctioned Loan plus applicablé interest.

iii. Three separate ~person.a1 guarantees, all dated 14.02.2024 and in favour of the Financial Creditor, executed by the three directions of the Corporate Debtor viz. Mr. Niranjan D. Agarwal, Mr. Aditya Agarwal and Mrs. Sunita Devi Agarwal covering the entire sanctioned loan plus applicant interest.

iv. Four undated cheques from the Coi”porate Debtor covéring the total sanctioned limit of Rs. 2 Crores.

v. One undated cheque from each Persofial Guarantor i.e. one cheque fom Mr. Niranjan D. Agarwal, one che