# In the matter of Larsen and Toubro Limited

> NCLT judgment dated 2023-10-20. Citation: TCN-2023-NCLT-01067. Chandramouli Silk Mills, an operational creditor, filed a company petition under Section 9 of…

- **Court:** NCLT
- **Order date:** 20 Oct 2023
- **Citation:** TCN-2023-NCLT-01067
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/larsen-and-toubro-limited-6bb07739

## Summary

### Background

Chandramouli Silk Mills, an operational creditor, filed a company petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Larsen & Toubro Limited, the corporate debtor. The petition was based on an alleged default of Rs. 1,44,01,609/-. The operational creditor claimed that the corporate debtor had vacated the licensed premises without proper handover, causing damage beyond normal wear and tear, and had outstanding dues related to rent and interest.

## Facts

Chandramouli Silk Mills (Operational Creditor) filed a petition against Larsen & Toubro Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, claiming a default of Rs. 1,44,01,609/-. The claim included unpaid rent, interest, and damages to a property leased to the Corporate Debtor under a Leave and License Agreement. The Corporate Debtor had leased the property for 36 months from 01/01/2018 to 31/12/2020 for building a labor colony related to an IKEA project. The agreed compensation varied annually, and a security deposit of INR 1,40,00,000/- was paid. The Corporate Debtor vacated the premises on or before 29th February, 2020, after issuing an intimation letter on 16th December, 2019. The Operational Creditor alleged that the

…

## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor meets the minimum threshold of INR 1 …

**Ratio:** The minimum threshold for initiating CIRP under Section 4 of the IBC is INR 1 crore.

…

**Reasoning:** The NCLT reasoned that the Operational Creditor's claim included INR 50,00,000/- for

…

**Interpretation:** Section 4 of the IBC requires a minimum debt threshold for initiating CIRP. The

…

**Application:** The NCLT applied the ratio by excluding the unadjudicated damages and interest

…

## Parties

- **Judges:** ANURADHA SANJAY…; Kuldip Kumar…
- **Appellants:** Chandramouli Silk…
- **Respondents:** Larsen & Toubro…
- **Advocates:** Zal T. Andhyarujin…; Akanksha A…; +3 more

## Timeline

- **2018-01-01 — Leave and Licence…**: Leave and Licence Agreement…
- **2020-02-29 — Premises V…**: Corporate Debtor vacated the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(21) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

---

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-division-bench-court-i-chenn/larsen-and-toubro-limited-6bb07739