Kalahridhaan Trendz CIRP: NCLT admits ₹3.26 cr default

NCLT Ahmedabad admits Section 7 insolvency petition

The Ahmedabad Bench of the National Company Law Tribunal (NCLT) admitted an insolvency petition filed by Kushal Finnovation Capital Pvt. Ltd. against Kalahridhaan Trendz Limited, citing a default of more than ₹3.26 crore. The admission order was passed on 14 August under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC). The case moves Kalahridhaan Trendz into the Corporate Insolvency Resolution Process (CIRP), a time-bound framework where management control typically shifts to an insolvency professional.

The development is notable for investors tracking small and mid-sized listed companies, as CIRP proceedings can directly affect operations, banking relationships, and disclosure requirements. It also comes in the same period when the Securities and Exchange Board of India (SEBI) issued an enforcement order against the company and its directors.

What triggered the CIRP action

According to the case details, Kalahridhaan Trendz failed to make payments claimed by the financial creditor. Kushal Finnovation Capital issued a recall notice dated 3 October 2024. The article states that cheques subsequently deposited by the financial creditor were returned with the remark “Account Closed.”

These events formed part of the record considered by the tribunal while examining whether a financial debt existed and whether a default had occurred, which are the key tests for admission under Section 7.

Kalahridhaan Trendz’s objections before the tribunal

Kalahridhaan Trendz opposed the insolvency petition, arguing that it was misconceived and premature. It also contended that the petition was barred by limitation. In addition, the company alleged suppression of material facts and claimed there was a lack of proper board authorisation for filing the petition.

Such defences are commonly raised in admission-stage litigation, where the respondent attempts to show that the claim does not meet the statutory conditions for triggering CIRP, or that procedural issues prevent the petition from being admitted.

NCLT’s findings: documents, limitation, and threshold

The NCLT noted that Kalahridhaan Trendz had executed promissory notes, guarantees, and cheques, and that these were not specifically denied. The Bench further held that the petition was filed within limitation.

The tribunal also found that the debt was due and payable and that the default exceeded the threshold prescribed under the IBC. On these grounds, it admitted Kalahridhaan Trendz Limited into CIRP under Section 7.

Interim Resolution Professional appointed

With the admission of the petition, the NCLT appointed Chirag Rajendrakumar Shah as the Interim Resolution Professional (IRP). The IRP’s appointment is a key procedural step in CIRP, as the IRP is tasked with taking over the process and steering the initial phase as per the IBC framework.

The case is titled Kushal Finnovatio Capital Pvt Ltd Vs Kalahridhaan Trendz Limited and is filed as C.P.(IB)/16(AHM)2026. The citation provided is 2026 LLBiz NCLT (AHM) 841.

Counsels who appeared in the matter

The applicant was represented by Senior Advocate Amar Bhatt along with Advocate Kunal Vaishnav. The respondent was represented by Advocate Sunil Bhavsar. These details are part of the case information accompanying the order.

SEBI order: ₹1 crore penalty over disclosures and defaults

Separately, SEBI imposed a total penalty of ₹1 crore on Kalahridhaan Trendz Ltd (KTL) and three directors: Niranjan D Agarwal, Aditya N Agarwal, and Sunitadevi Niranjan Agarwal. The SEBI action cited false and misleading corporate disclosures, failure to disclose loan defaults, and other governance lapses.

The SEBI order is dated Jul 30, 2026, under “Final Order in the matter of Kalahridhaan Trendz Ltd.” The enforcement action adds regulatory context for investors assessing governance and disclosure standards around the company.

Company snapshot and trading details mentioned

Kalahridhaan Trendz Ltd is described as a textile dyeing and processing company, incorporated in 2016. The managing director is listed as Mr. Niranjan Agarwal, and the NSE symbol is KTLSZ.

The data shared alongside the company profile includes market cap figures around ₹7.91 crore to ₹8.00 crore, a current price of ₹4.60, and a 52-week high/low of ₹33.5 / ₹4.60. The profile also lists: Stock P/E 1.88, book value ₹28.9, dividend yield 10.9%, ROCE 19.3%, ROE 24.1%, and face value ₹10.0.

IPO details provided in the article context

The article context also includes SME IPO information: Kalahridhaan Trendz IPO is stated as a public issue (fixed portion) of ₹44.98 crore, described as a fresh issue of 99.96 lakh shares. The IPO open date was 15 Feb, 2024, and it closed on 20 Feb, 2024. The issue price is mentioned as ₹45, lot size 3,000, and minimum investment ₹135,000. The listing date is stated as 23 Feb, 2024, with listing on NSE.

Key facts table

IPO timeline table (as provided)

Contact details published for the company

Kalahridhaan Trendz Ltd is listed with an address at 57 Ashra Industrial Estate, B/H Mahalaxmi Fabrics, Nr Narol C.R, Ahmedabad-382405. The phone number is +91 63533 02166 and the email is cs@kalahridhaan.com. The website is www.kalahridhaan.com.

Conclusion

The NCLT Ahmedabad order admitting Kalahridhaan Trendz into CIRP over a default exceeding ₹3.26 crore marks a formal escalation into insolvency proceedings, with an IRP appointed to run the process. Alongside the CIRP admission, SEBI’s July 2026 penalty order highlights parallel regulatory scrutiny related to disclosures and loan default reporting. The next procedural steps will follow the CIRP framework under the IBC, based on the tribunal’s admission order and the IRP’s actions.