Authority: National Company Law Tribunal, Division Bench (Court-I), Chennai

Order Date: July 7, 2026

Case Overview

The National Company Law Tribunal (NCLT) Chennai bench, comprising Member (Judicial) Shri Sanjiv Jain and Member (Technical) Shri Venkataraman Subramaniam, heard insolvency petition CP(IB)/28(CHE)2022 filed by financial creditor Phoenix ARC against corporate debtor Virgo Properties Pvt Ltd under Section 7 Rule 4 of the Insolvency and Bankruptcy Code, 2016. Only counsel for the petitioner, Shri Dhakshin Kumar, was present during the hearing conducted via video conferencing.

The tribunal raised several substantive clarifications requiring detailed financial documentation and explanations. For Phoenix ARC, the bench directed the filing of complete statement of loan accounts separately for each loan of both borrowers from initial disbursement to the petition filing date, including all disbursements, interest applications, and repayments. The tribunal questioned why default amounts differed between petitions despite the companies being jointly and severally liable per loan agreement. Specifically, the bench sought detailed accounting for three major transactions: sale of land on February 5, 2018 for Rs. 6.158 crore, sale of land on September 29, 2018 for Rs. 6.0 crore, and Rs. 60.0 crore received from Kauvery Hospital. The tribunal specifically questioned why Phoenix ARC received Rs. 2,37,17,410 from the Kauvery Hospital sale proceeds, requesting date-wise entries corresponding to these transactions.

For respondent Virgo Properties, the tribunal directed disclosure of how many projects the corporate debtor has underway and required submission of copy of audited balance sheets from 2019 till date.

Final Outcome

The NCLT granted one week for both parties to provide the requested information and documentation. The bench adjourned both connected petitions (CP/28/2022 and CP/71/2022) for physical hearing on July 16, 2026. The matter remains pending until the clarifications are provided and reviewed by the tribunal.

Topics: Insolvency Proceeding, Financial Documentation, Asset Disposal Accounting