# Phoenix ARC Limited vs. Virgo Realtors Private Limited & Virgo Properties Private Limited

> NCLT judgment dated 2026-07-31. Citation: TCN-2026-NCLT-00747. Phoenix ARC Limited, as the Financial Creditor and assignee of a loan originally sanctioned by…

- **Court:** NCLT
- **Order date:** 31 Jul 2026
- **Citation:** TCN-2026-NCLT-00747
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chennai/phoenix-arc-limited-vs-virgo-realtors-private-limited-virgo-properties-private-l-5cijs

## Summary

### Background

Phoenix ARC Limited, as the Financial Creditor and assignee of a loan originally sanctioned by L&T Housing Finance Limited, filed two petitions under Section 7 of the IBC, 2016, against Virgo Realtors Private Limited (Borrower) and Virgo Properties Private Limited (Co-Borrower). The Corporate Debtors had availed a term loan of Rs. 107 Crores in 2017 for construction projects, with joint and several liability. The loan was subsequently assigned multiple times, eventually to Phoenix ARC Limited. The Corporate Debtors defaulted on repayments, leading to the account being classified as an NPA. Despite reminders, notices, and even One Time Settlement (OTS) offers from the Corporate Debtors (which were not accepted), the debt remained outstanding. The Corporate Debtors

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## Facts

L&T Housing Finance Limited sanctioned a term loan of Rs. 107,00,00,000/- to Virgo Realtors Private Limited (Borrower) and Virgo Properties Private Limited (Co-Borrower) on June 15, 2017.

Loan documents, including a loan agreement, were executed on June 23, 2017, stipulating joint and several liability for both Corporate Debtors.

The loan was granted for construction projects: Tranquil Square by Virgo Realtors Private Limited and Bounty Acres by Virgo Properties Private Limited.

Rs. 44,70,34,770/- was disbursed to Virgo Realtors Private Limited, and Rs. 56,85,98,913/- was disbursed to Virgo Properties Private Limited.

The loan was assigned by L&T Housing Finance Limited to L&T Finance Limited via an assignment deed dated March 29, 2019.

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## Issues and analysis

### Issue 1: Whether the assignment deed dated March 29, 2022, through which Phoenix ARC Private Limited claims …

**Ratio:** The assignment of debt from L&T Housing Finance Limited to L&T Finance Limited

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**Reasoning:** The NCLT noted that L&T Housing Finance Limited merged with L&T Finance Limited

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**Interpretation:** The Tribunal interpreted the merger as a legal transfer of assets and

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**Application:** The principles of legal vesting upon merger and the curative effect of

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** Phoenix ARC…; Phoenix ARC Pvt…
- **Respondents:** Virgo Realtors…; Virgo Properties…
- **Other parties:** Phoenix ARC…; Renuka Devi…; +3 more
- **Advocates:** Vija…; P.C. Hari…; +5 more

## Timeline

- **2017-06-15 — Loan Sanc…**: L&T Housing Finance Limited sanctioned a term loan of Rs. 107 Crores to the Corporate…
- **2017-06-23 — Loan Agreement…**: Loan documents, including the loan agreement,…

## 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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