# In the matter of LGCL Urban Homes (India) LLP C.P. (IB) No. 123-BB-2020

> NCLT judgment dated 2020-08-19. Citation: TCN-2020-NCLT-00824. Dr. Kalathur Thomas Thomas, the Petitioner/Operational Creditor, paid an advance of Rs.…

- **Court:** NCLT
- **Order date:** 19 Aug 2020
- **Citation:** TCN-2020-NCLT-00824
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/lgcl-urban-homes-india-llp-cp-ib-no-123-bb-2020-c8f07ef2

## Summary

### Background

Dr. Kalathur Thomas Thomas, the Petitioner/Operational Creditor, paid an advance of Rs. 20,00,000 for a unit in the 'LGCL New Life' project in Bengaluru on September 9, 2018, towards title inspection. This payment was based on the assurance that the amount would be refunded if he was not satisfied with the title. The Petitioner was not convinced with the title and requested a refund. The Respondent, LGCL Urban Homes (India) LLP, issued cheques for the refund, but repeatedly stopped payment on these cheques, citing financial difficulties and sluggish market conditions. The Petitioner issued a demand notice, but received no response. The Respondent issued post-dated cheques which were also stopped. The Petitioner, a senior citizen, was subjected to repeated delays and

…

## Facts

Dr. Kalathur Thomas Thomas, an 85-year-old senior citizen, paid Rs. 20,00,000 as an advance for a unit in the 'LGCL New Life' project by LGCL Urban Homes (India) LLP on September 9, 2018. The advance was for title inspection, with the understanding that it would be refunded if he was not satisfied. After title inspection, Dr. Thomas was not satisfied and requested a refund. LGCL Urban Homes issued several cheques for the refund, including interest, but repeatedly stopped payment on these cheques, citing financial difficulties. The initial cheque was dated June 19, 2019. Subsequent cheques were issued on February 10, 2019, and December 19, 2019, but payments were also stopped on these. The company claimed to be handling multiple projects worth over Rs. 100 crores and

…

## Issues and analysis

### Issue 1: Whether the petition filed by the Operational Creditor is maintainable under Section 9 of the IBC, …

**Ratio:** Section 9 of the IBC, 2016, allows an operational creditor to initiate CIRP against a

…

**Reasoning:** The court considered the arguments presented by the Respondent regarding the

…

**Interpretation:** The interpretation of Section 9 of the IBC, 2016, involves determining whether

…

**Application:** In this case, the court did not explicitly rule on the maintainability of the

…

## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** Kalathur Thomas…
- **Respondents:** LGCL Urban Homes…

## Timeline

- **2018-09-09 — Advance P…**: Dr. Kalathur Thomas Thomas paid Rs. 20,00,000 as an advance for a unit in the 'LGCL New…
- **2018-11-10 — Demand N…**: Petitioner issued a demand notice to the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

---

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/nclt-chandigarh/lgcl-urban-homes-india-llp-cp-ib-no-123-bb-2020-c8f07ef2