Kalahridhaan Trendz CIRP: Key NCLT Updates for 2026

NCLT admits Kalahridhaan Trendz into CIRP

Kalahridhaan Trendz Limited has entered the Corporate Insolvency Resolution Process, or CIRP, following an order of the Ahmedabad Bench of the National Company Law Tribunal. The order was passed on 14 August 2026 under Section 7 of the Insolvency and Bankruptcy Code, 2016. The insolvency petition was filed by Kushal Finnovation Capital Pvt. Ltd. against the listed SME textile company. The petition cited a financial default of more than ₹3.26 crore. The matter is recorded as C.P.(IB)/16(AHM)2026 and is titled Kushal Finnovatio Capital Pvt Ltd Vs Kalahridhaan Trendz Limited. The cited order is reported as 2026 LLBiz NCLT (AHM) 841. The admission places the company under the insolvency process overseen by an insolvency professional.

Tribunal findings on the Section 7 petition

The Ahmedabad Bench said insolvency proceedings may be initiated where a financial debt is due and payable, the default exceeds the prescribed IBC threshold, and the petition is filed within limitation. Kalahridhaan Trendz had opposed the petition. It contended that the application was misconceived, premature and barred by limitation. The tribunal noted that the company had executed promissory notes, guarantees and cheques. According to the reported order details, these documents were not specifically denied by the company. The Bench also found that the petition had been filed within the applicable limitation period. It consequently admitted the company into CIRP under Section 7 of the IBC.

Chirag Rajendrakumar Shah appointed as IRP

The NCLT appointed Chirag Rajendrakumar Shah as the Interim Resolution Professional, or IRP, upon admission of the case. The powers of Kalahridhaan Trendz's Board of Directors stand suspended during the CIRP. Those powers are vested in the IRP as part of the insolvency process. A moratorium under Section 14 of the IBC has also taken effect. The moratorium is among the formal consequences recorded following the admission order. The IRP is responsible for handling the process during the interim stage. This includes receiving claims and taking steps connected with the corporate debtor's assets and records.

Public announcement and creditor claim deadline

Public-announcement records show that the CIRP announcement was made on 17 August 2026. Creditors were invited to submit claims with proof by 28 August 2026. The public-announcement records contained two entries with the same announcement date and submission deadline. One entry identified Kushal Finnovation Capital Private Limited as applicant. Another entry named Kalahridhaan Trendz Limited as applicant. Both records identified Kalahridhaan Trendz Limited as the corporate debtor and Chirag Rajendra Kumar Shah as the insolvency professional. The stated estimated completion date for the CIRP is 10 February 2027.

Creditors' committee formed after claim verification

A later update dated 4 September 2026 stated that the IRP had constituted the Committee of Creditors, or CoC. The update said that ₹65.67 crore of secured and unsecured financial claims had been admitted. This figure relates to admitted financial claims in the CIRP process. It is distinct from the financial default of more than ₹3.26 crore cited in the Section 7 petition. The company also informed the exchange that the IRP filed the admitted list of creditors as on 3 September 2026 before the NCLT Ahmedabad Bench. The formation of the CoC is a recorded step in the ongoing resolution process.

October applications against suspended board

On 24 October 2026, Kalahridhaan Trendz disclosed that its Resolution Professional had filed an application under Section 19(2) of the IBC. The application was submitted before NCLT Ahmedabad Bench Court-II. It was filed against the company's suspended Board of Directors. The disclosure did not state a monetary amount connected with this application. The filing followed the suspension of the Board's powers after the company's admission into CIRP. The announcement identifies the proceeding as a Section 19(2) application before the tribunal.

Plea seeks machinery rent or asset possession

The Resolution Professional also filed an application on 24 October before NCLT Ahmedabad Bench Court-II against Shreeji Texfab and Gajanand Textile. The application was filed under Section 60(5) read with Section 18(1)(f) of the IBC. It seeks rent for the use of machinery and the corporate debtor's business during the CIRP. Alternatively, it seeks possession of assets belonging to Kalahridhaan Trendz. The company did not disclose the monetary amount sought in this filing. The application was therefore reported as an asset and machinery-rent recovery matter, rather than a quantified claim.

Key CIRP dates and disclosed figures

What the developments mean for the process

The August admission order formally moved Kalahridhaan Trendz into a creditor-led insolvency resolution framework under the IBC. The subsequent claim verification and constitution of the CoC indicate that the process progressed beyond the initial admission stage. The October filings show that the Resolution Professional is also pursuing issues concerning company assets, machinery use and the suspended Board. However, the disclosed filings do not specify the monetary amount claimed from Shreeji Texfab and Gajanand Textile. The tribunal's consideration of these applications will form part of the continuing CIRP proceedings. The stated timeline identifies 10 February 2027 as the estimated date for completion of the resolution process.

Conclusion

Kalahridhaan Trendz's CIRP began with the NCLT's 14 August 2026 admission order over a default of more than ₹3.26 crore. Since then, ₹65.67 crore of financial claims have been admitted, the CoC has been constituted, and further NCLT applications have been filed over board cooperation and company assets. The next recorded milestones will depend on proceedings before the Ahmedabad Bench and the progress of the CIRP toward its stated estimated completion date of 10 February 2027.