# Phoenix ARC Private Ltd. vs. Cherupushpam Films Private Limited

> NCLAT judgment dated 2026-07-03. Citation: TCN-2026-NCLAT-00238. Phoenix ARC Private Ltd. (Appellant), an Asset Reconstruction Company, filed a Section 7…

- **Court:** NCLAT
- **Order date:** 3 Jul 2026
- **Citation:** TCN-2026-NCLAT-00238
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-chennai/phoenix-arc-private-ltd-vs-cherupushpam-films-private-limited-mvh27

## Summary

### Background

Phoenix ARC Private Ltd. (Appellant), an Asset Reconstruction Company, filed a Section 7 application under the Insolvency and Bankruptcy Code, 2016, against Cherupushpam Films Private Limited (Respondent/Corporate Debtor) for initiation of the Corporate Insolvency Resolution Process (CIRP). The application was based on a debt assigned to the Appellant by South Indian Bank, stemming from loan facilities for a joint venture construction project. The NCLT dismissed the application, primarily on two grounds: the assignment deed dated 17.03.2017 was deemed unenforceable due to insufficient stamping under the Kerala Stamp Act, 1959, and the Appellant failed to prove its authority to institute the petition due to the non-production of the original Trust Deed.

## Facts

The Appellant, Phoenix ARC Private Ltd., filed an application under Section 7 of the I&B Code, 2016, for initiation of CIRP against the Respondent, Cherupushpam Films Private Limited (Corporate Debtor).

The application concerned loan facilities for the construction of a building on a joint venture basis between M/s. Kerala Chamber of Commerce (Principal Borrower) and M/s. Cherupushpam Films Private Limited (Corporate Debtor).

A default occurred, and the debt was not remitted despite a demand notice.

The Appellant is an Asset Reconstruction Company registered under the SARFAESI Act and acquired the debt through an assignment deed from the original financial creditor, South Indian Bank.

…

## Issues and analysis

### Issue 1: Whether the deed of assignment dated …

**Ratio:** A document, even if initially insufficiently stamped, becomes enforceable and admissible

…

**Reasoning:** The Ld. NCLT had held the assignment deed unenforceable due to insufficient stamping

…

**Interpretation:** The Appellate Tribunal interpreted that the subsequent registration of the

…

**Application:** Given the registration of the Assignment Deed on 30.03.2024, it is now

…

## Parties

- **Judges:** Sharad Kumar…; Jatindranat…
- **Appellants:** Phoenix ARC…
- **Respondents:** CHERUPUSHPAM…
- **Other parties:** South India…
- **Advocates:** Suresh Dutt…; Shikhar…; +1 more

## Timeline

- **2010-09-15 — Loan Sanc…**: An amount of Rs 1.10 Crores was…
- **2010-09-16 — Agreements E…**: A credit facility agreement was executed by the Principal Borrower, and a guarantee…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 3 — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-3)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-chennai/phoenix-arc-private-ltd-vs-cherupushpam-films-private-limited-mvh27