# Ram Chandran Traders Pvt Ltd vs. N/A

> NCLT judgment dated 2026-07-03. Citation: TCN-2026-NCLT-00708. Ram Chandran Traders Private Limited, the Corporate Debtor, filed an application under Section…

- **Court:** NCLT
- **Order date:** 3 Jul 2026
- **Citation:** TCN-2026-NCLT-00708
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chennai/ram-chandran-traders-pvt-ltd-rtyeq

## Summary

### Background

Ram Chandran Traders Private Limited, the Corporate Debtor, filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, read with Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against itself. The company, incorporated on 23.12.2011, reported severe financial distress and defaults towards its creditors, including substantial statutory dues to the Commercial Taxes Department, amounting to an aggregate default of Rs. 72,90,75,921/-. The application was authorized by resolutions of its Board of Directors and shareholders, and it proposed Mr. K. J. Vinod as the Interim Resolution Professional.

## Facts

Ram Chandran Traders Private Limited (Corporate Debtor) filed an application under Section 10 of the IBC, 2016, seeking initiation of CIRP against itself.

The Corporate Debtor was incorporated on 23.12.2011 under the Companies Act, 1956, with an Authorized Capital of Rs.1,00,000/-.

The company's registered office is at No. 2 Bharathi Nagar IInd street, Villivakam, Chennai, Tamil Nadu, India – 600 049.

The Corporate Debtor has suffered severe financial distress and committed defaults towards its creditors.

The aggregate amount of default is Rs. 72,90,75,921/-.

A substantial portion of the liabilities arises from statutory dues payable to the Commercial Taxes Department.

…

## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Ram Chandran Traders Private Limited, has committed a default in …

**Ratio:** The Corporate Debtor has committed defaults in repayment of its liabilities, including

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**Reasoning:** The application details an aggregate default of Rs. 72,90,75,921/-, largely due to

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**Interpretation:** A 'default' under the IBC is established when a debtor fails to pay a debt when

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**Application:** The Corporate Debtor's documented inability to pay its statutory dues and other

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## Parties

- **Judges:** Shri. JYOTI KUMAR…; SHRI. RAVICHANDRAN…
- **Respondents:** Ram Chandran…
- **Other parties:** Doss Subr…; K.J. V…; +1 more
- **Advocates:** Chirag…; Ashlin Ch…

## Timeline

- **2022-06-14 — Date of D…**: First demand notice issued by the…
- **2023-10-25 — Date of D…**: Second demand notice issued by the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 11 — Persons not entitled to make application](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-11)

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