# In the matter of RAJTHARUN TEXTILES INDIA PRIVATE LIMITED

> NCLT judgment dated 2026-02-24. Citation: TCN-2026-NCLT-00202. Rajtharun Textiles India Pvt Ltd filed an application under Section 10 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 24 Feb 2026
- **Citation:** TCN-2026-NCLT-00202
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chennai/rajtharun-textiles-india-private-limited-b5a76a3d

## Summary

### Background

Rajtharun Textiles India Pvt Ltd filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP).

## Facts

Rajtharun Textiles India Pvt Ltd filed an application under Section 10 of the IBC, 2016 for initiating CIRP.

The Corporate Applicant convened an EGM on 11.11.2023 and passed a resolution approving the initiation of CIRP.

Canara Bank is the Financial Creditor with a debt of Rs. 23,19,45,570.26.

The Corporate Applicant owes Rs. 1,35,46,138 and Rs. 24,39,245 to Samunnati Agro Solutions Private Limited.

The Corporate Debtor's account was classified as NPA by Canara Bank on 07.11.2023.

The Corporate Applicant had availed credit facilities from Small Industries Development Bank of India since 2020.

The Corporate Applicant was sanctioned a working capital term loan of Rs. 100 Lakh under ECLGS.

…

## Issues and analysis

### Issue 1: Whether the Corporate Applicant has committed a …

**Ratio:** Section 10 of the IBC allows a corporate debtor to initiate CIRP if it has committed a

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**Reasoning:** The Tribunal found that the Corporate Applicant had outstanding debts to Canara Bank and

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**Interpretation:** The existence of outstanding debts and the classification of the account as NPA

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**Application:** The Tribunal concluded that a financial debt existed and that default had

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## Parties

- **Judges:** JYOTI KUMAR…; RAVICHANDRAN…
- **Respondents:** Rajtharun…
- **Other parties:** Canara…; CA. S. P…; +2 more
- **Advocates:** A. G. Satyanarayan…; Vinithra Srinivasa…; +8 more

## Timeline

- **2023-11-11 — EGM Date…**: Corporate Applicant convened an EGM and passed a resolution approving the initiation of…
- **2023-11-07 — NPA Classif…**: Corporate Debtor's account…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 138 — Discharge order](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-138)

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