# In the matter of Lakshya Realties Private Limited

> NCLT judgment dated 2024-01-12. Citation: TCN-2024-NCLT-03150. This case involves an application filed by Mohammad Zahid Khan, an Operational Creditor, under…

- **Court:** NCLT
- **Order date:** 12 Jan 2024
- **Citation:** TCN-2024-NCLT-03150
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/lakshya-realties-private-limited-612455e8

## Summary

### Background

This case involves an application filed by Mohammad Zahid Khan, an Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Lakshya Realties Pvt Ltd, the Corporate Debtor. The operational debt claimed is Rs 6,67,53,517, including principal and interest, with a default date of 26.05.2021. The Corporate Debtor and Operational Creditor entered into two development agreements in 2011 and 2012. The Operational Creditor claims to have completed the work as per the agreements by May 2015 and raised final bills for Rs 1,21,88,222, which remained unpaid despite acknowledgements. The Operational Creditor issued reminder letters from August 2015 to March 2020. A demand notice

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## Facts

Mohammad Zahid Khan (Operational Creditor) filed an application under Section 9 of the IBC against Lakshya Realties Pvt Ltd (Corporate Debtor) for initiating CIRP. The claimed operational debt is Rs 6,67,53,517, including principal (Rs 1,21,88,222) and interest (Rs 5,55,65,295), with a default date of 26.05.2021. The parties entered into two development agreements in 2011 and 2012. The Operational Creditor completed work by May 2015 and raised final bills for Rs 1,21,88,222, which remained unpaid. Reminder letters were issued from August 2015 to March 2020. A demand notice was issued on 25.03.2023, but the Corporate Debtor did not respond. The Corporate Debtor's financial condition was poor as of March 2013, and it was struck off the RoC Gwalior's records on

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## Issues and analysis

### Issue 1: Whether the application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 is barred …

**Ratio:** Section 18 of the Limitation Act, 1963 states that an acknowledgement of liability, made

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**Reasoning:** The NCLT examined the reminder letters submitted by the Operational Creditor and found

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**Interpretation:** The NCLT interpreted Section 18 of the Limitation Act, 1963, in light of

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**Application:** In this case, the NCLT found that the reminder letters, with the Director's

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## Parties

- **Judges:** MAHENDRA KHANDELWA…; KAUSHALENDRA…
- **Appellants:** Mohammad Zahid…
- **Respondents:** Lakshya Realties…

## Timeline

- **2011-11-24 — Work Order…**: Lakshya Realties Private Limited entered into a development agreement with Mohammad Zahid…
- **2012-02-20 — Work Order…**: Lakshya Realties Private Limited entered into a development agreement with Mohammad Zahid…

## 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)

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