# Phoenix ARC Private Limited Trustee of Phoenix Trust FY17-8 vs. M/s. Cherupushpam Films Private Limited

> NCLT judgment dated 2026-09-30. Citation: TCN-2026-NCLT-01091. Phoenix ARC Private Limited Trustee of Phoenix Trust FY17-8 (Financial Creditor) filed a…

- **Court:** NCLT
- **Order date:** 30 Sept 2026
- **Citation:** TCN-2026-NCLT-01091
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kochi/cherupushpam-films-pvt-ltd-qrskx

## Summary

### Background

Phoenix ARC Private Limited Trustee of Phoenix Trust FY17-8 (Financial Creditor) filed a Section 7 IBC petition against M/s. Cherupushpam Films Private Limited (Corporate Debtor), who acted as a guarantor for credit facilities availed by M/s. Kerala Chamber of Commerce and Industry (Principal Borrower) from South Indian Bank Limited. The Principal Borrower defaulted, leading to the loan accounts being classified as NPA on 30.09.2013. The debt was subsequently assigned to the Financial Creditor. The Corporate Debtor had mortgaged its property as security. The petition was initially dismissed due to procedural issues (unstamped Assignment Deed, non-production of Trust Deed) but was remanded by NCLAT for fresh consideration on merits after the Financial Creditor rectified

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## Facts

Phoenix ARC Private Limited Trustee of Phoenix Trust FY17-8 (Financial Creditor) filed a Section 7 IBC petition against M/s. Cherupushpam Films Private Limited (Corporate Debtor).

The Corporate Debtor acted as a guarantor for credit facilities aggregating Rs.8,60,00,000/- availed by M/s. Kerala Chamber of Commerce and Industry (Principal Borrower) from South Indian Bank Limited.

The Corporate Debtor executed guarantee agreements and created an equitable mortgage over 43.95 cents of land with a building (Kerala Trade Centre) as security.

The Principal Borrower defaulted in repayment, and loan accounts were classified as Non-Performing Assets (NPA) on 30.09.2013.

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## Issues and analysis

### Issue 1: Whether the present petition filed by the Financial Creditor against the Corporate Debtor, as …

**Ratio:** The period of limitation for a Section 7 IBC application against a guarantor is extended

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**Reasoning:** The loan accounts were classified as NPA on 30.09.2013. The Principal Borrower

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**Interpretation:** Section 18 of the Limitation Act, 1963, allows for a fresh period of limitation

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**Application:** Applying Section 18 of the Limitation Act and the Supreme Court's COVID-19

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## Parties

- **Judges:** Shri. Vina…; SHRI. RAVICHANDRAN…
- **Appellants:** Phoenix ARC…
- **Respondents:** M/s. Cherupushpam…
- **Other parties:** Kerala Chambers…; Home Bu…; +3 more
- **Advocates:** Suresh Dutt…; KEVIN T…; +1 more

## Timeline

- **2010-09-15 — Financial Facility…**: Financial facility of Rs.1.10 Crores sanctioned to the Principal Borrower for…
- **2010-09-16 — Agreements E…**: Credit Facility Agreement and Guarantee Agreement executed by the Principal Borrower and…

## 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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