Kishinchand Chellaram College was established in 1954 under the aegis of the Hyderabad (Sind) National Collegiate Board. It was the second institution that the Management set up in Bombay after it relocated itself in the city, following the aftermath of Partition. The onus of the task was taken up by late founders, principal K.M. Kundnani and barrister Hotchand Advani, who helped set up K.C. College as well as several other educational institutions. Kundnani and Advani were the pillars of that board.
The R. D. National College was the first of the board's institutions and K.C. was the second. The latter came to be reckoned as its flagship institution from where the board's activities were conducted. The plot for the construction of K.C. College was leased from Ratanben Fauzdar for 99 years. Under the draught plan of architect K.M. Gidwani and the management of principal Kundnani, the building was completed in six months. The foundation stone was laid by Shri Dinkarrao Desai, the minister for education.
Students had been admitted from 1 June 1954 but a formal inauguration of the inception of the college was performed by Morarji Desai(the chief minister of Bombay State) on 15 August of the same year. Its first batch comprised 1800 students and, within three years, the numbers have consistently increased.