# In the matter of LOKAA HOUSING PRIVATE LIMITED

> NCLT judgment dated 2025-09-12. Citation: TCN-2025-NCLT-01382. S. Sivakumar, a financial creditor, filed a petition under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 12 Sept 2025
- **Citation:** TCN-2025-NCLT-01382
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chennai/lokaa-housing-private-limited-3a67159a

## Summary

### Background

S. Sivakumar, a financial creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC) against Lokaa Housing Private Limited, the corporate debtor, for initiating the Corporate Insolvency Resolution Process (CIRP). The claim arises from an agreement where Sivakumar invested in a project by Lokaa Developers Private Limited, an associate of Lokaa Housing, with a buyback arrangement. Upon project delays, a Memorandum of Agreement was executed with Lokaa Housing, acknowledging the debt.

## Facts

S. Sivakumar invested Rs. 14,00,00,000/- in a project by Lokaa Developers Private Limited, an associate of Lokaa Housing Private Limited, under an agreement dated 11.05.2018.

The agreement included a buyback clause assuring a consideration of Rs. 25,00,00,000/- by 31.05.2021.

The project was not completed within the stipulated time, and the applicant exercised the buyback option.

A Memorandum of Agreement was executed on 21.08.2022 between the applicant and Lokaa Housing Private Limited, acknowledging a debt of Rs. 25,00,00,000/- with interest.

The Corporate Debtor issued post-dated cheques, including one dated 04.03.2024 for Rs. 2,00,00,000/-, which were dishonored.

…

## Issues and analysis

### Issue 1: Whether the transaction constitutes a …

**Ratio:** The Tribunal held that the Memorandum of Agreement dated 21.08.2022 expressly records

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**Reasoning:** The Tribunal reasoned that this document falls within the ambit of "financial

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**Interpretation:** The Tribunal interpreted Section 5(8) of the IBC to include debts arising from

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**Application:** The Tribunal applied this interpretation to the facts of the case, finding that

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## Parties

- **Judges:** JYOTI KUMAR…; RAVICHANDRAN…
- **Appellants:** S SIVAK…
- **Respondents:** Lokaa Housing…
- **Other parties:** P. Santhosh…; Kalpana S…; +2 more
- **Advocates:** M.ROSHAN…; Rajesh…

## Timeline

- **2018-05-11 — Agreement…**: Agreement between S. Sivakumar and Lokaa Developers Private Limited for investment of Rs.…
- **2021-01-01 — Project Completion…**: Stipulated completion date for the…

## 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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