# Dinesh Chand & Ors. vs. Raja Udyog Private Limited

> NCLT judgment dated 2026-07-20. Citation: TCN-2026-NCLT-00659. Three financial creditors (Dinesh Chand, Girish Chandra, Anju Agarwal), operating as sole…

- **Court:** NCLT
- **Order date:** 20 Jul 2026
- **Citation:** TCN-2026-NCLT-00659
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/dinesh-chand-ors-vs-raja-udyog-private-limited-90rjs

## Summary

### Background

Three financial creditors (Dinesh Chand, Girish Chandra, Anju Agarwal), operating as sole proprietors, filed a Section 7 IBC application against Raja Udyog Private Limited (Corporate Debtor) for initiating CIRP. The Corporate Debtor, facing financial distress in 2020 due to Covid-19, obtained financial assistance totaling Rs. 2.25 Crores from the applicants. Initial interest payments were made, but the Corporate Debtor ceased payments after April 2022. Demand notices were issued in early 2025, and subsequent part-payment cheques were dishonoured, leading to a claimed default of Rs. 3,18,88,305.66 as of April 28, 2025.

## Facts

Dinesh Chand, Girish Chandra (M/s. G.R. Chemicals), and Anju Agarwal (M/s. R. Traders) are sole proprietors who filed a Section 7 IBC application.

The application seeks to initiate Corporate Insolvency Resolution Process (CIRP) against Raja Udyog Private Limited (Corporate Debtor).

Raja Udyog Private Limited was incorporated on February 12, 2001, and its registered office is in West Bengal.

In September 2020, due to the Covid-19 pandemic, the Corporate Debtor sought financial assistance.

Mr. Omprakash Gupta, a Director of the Corporate Debtor, approached Financial Creditor No. 1 (Dinesh Chand).

Financial Creditor No. 1 transferred Rs. 1,00,00,000/- to the Corporate Debtor on October 6, 2020, in two installments.

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## Issues and analysis

### Issue 1: Whether the Applicant qualifies as a Financial Creditor under IBC, and whether the debt claimed …

**Ratio:** An application under Section 7 of the IBC is maintainable if a debt is proved to be due,

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**Reasoning:** The Corporate Debtor admitted to financial distress and receiving financial assistance.

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**Interpretation:** The NCLT interpreted the transactions, including interest payments and TDS

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**Application:** The NCLT applied the definition of "financial debt" and

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## Parties

- **Judges:** Shri. Labh…; Rekha Kantilal…
- **Appellants:** Dinesh…; Girish Ch…; +1 more
- **Respondents:** Raja Udyog…
- **Other parties:** Omprakash…; Abhijeet…
- **Advocates:** Aishwarya…; Barsha Di…

## Timeline

- **2020-09 — Corporate Debtor seeks…**: Raja Udyog Private Limited, facing financial distress due to the Covid-19 pandemic, was…
- **2020-10-06 — Financial assistance…**: Financial Creditor No. 1 (Dinesh Chand) transferred Rs. 1,00,00,000/- to the Corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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