# In the matter of Lalith Gangadhar Constructions Pvt. Ltd. CP (IB) No. 87-BB-2021

> NCLT judgment dated 2022-04-26. Citation: TCN-2022-NCLT-04906. The application was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by the…

- **Court:** NCLT
- **Order date:** 26 Apr 2022
- **Citation:** TCN-2022-NCLT-04906
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-bengaluru/lalith-gangadhar-constructions-pvt-ltd-cp-ib-no-87-bb-2021-4491b112

## Summary

### Background

The application was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by the Financial Creditors to initiate the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, Lalith Gangadhar Constructions Private Limited.

## Facts

The application was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016.

The applicants are Financial Creditors.

The Corporate Debtor is Lalith Gangadhar Constructions Private Limited.

The total default amount claimed is Rs. 7,48,37,351/-.

The Corporate Debtor is a real estate developer involved in the 'LGCL ONE STREET' project.

Construction activity came to a standstill in September 2019.

The Corporate Debtor admitted the debt and default.

The application was filed within the period of limitation.

## Issues and analysis

### Issue 1: Whether the application under Section 7 of the …

**Ratio:** Section 7(5)(a) of the Code states that if the Adjudicating Authority is satisfied that a

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**Reasoning:** The Adjudicating Authority found the application complete and the occurrence of default

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**Interpretation:** The Adjudicating Authority interpreted Section 7(5)(a) to mean that if the

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**Application:** The Adjudicating Authority applied Section 7(5)(a) and admitted the application

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## Parties

- **Judges:** Ajay Kumar…; Manoj Kumar…
- **Appellants:** Aravindan…
- **Respondents:** M/s. Lalith…
- **Other parties:** Eby Ma…; Merry…; +13 more
- **Advocates:** Shri. Abhij…; Rupa…

## Timeline

- **2007-09-19 — Incorporation of…**: Lalith Gangadhar Constructions…
- **2012-04-25 — Joint Development…**: Corporate debtor entered into Joint Development Agreement dated 25/04/2012 with the owner…

## 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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