# In the matter of Lokaa Developers Private Limited

> NCLT judgment dated 2024-06-07. Citation: TCN-2024-NCLT-01207. This application was filed by Mrs. V. Rajalakshmi and 25 others, acting as financial creditors,…

- **Court:** NCLT
- **Order date:** 7 Jun 2024
- **Citation:** TCN-2024-NCLT-01207
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/lokaa-developers-private-limited-e38f28eb

## Summary

### Background

This application was filed by Mrs. V. Rajalakshmi and 25 others, acting as financial creditors, under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Lokaa Developers Private Limited, the corporate debtor. The applicants are individual homebuyers in the 'M One Project' developed by the corporate debtor. The corporate debtor is a limited company incorporated on 02.09.2011. The applicants claim that the corporate debtor failed to hand over possession of the flats within the prescribed period, leading to a significant delay. The total amount disbursed by the applicants is Rs. 22,66,54,253.00, with the date of default mentioned as 04.09.2022.

## Facts

Mrs. V. Rajalakshmi and 25 others, acting as financial creditors, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Lokaa Developers Private Limited, the corporate debtor. The applicants are individual homebuyers in the 'M One Project' developed by the corporate debtor in Madhavaram, Chennai, consisting of 234 dwelling units. The corporate debtor is a limited company incorporated on 02.09.2011. The applicants disbursed a total amount of Rs. 22,66,54,253.00 between July 2016 and June 2022. The date of default is mentioned as 04.09.2022, based on the failure of the corporate debtor to hand over possession of the flats. The applicants remitted more than 95% of the

…

## Issues and analysis

### Issue 1: Whether the application filed by the homebuyers is maintainable under Section 7 of the Insolvency …

**Ratio:** Section 7 of the IBC allows a financial creditor, either individually or jointly, to file

…

**Reasoning:** The NCLT observed that the applicants are homebuyers (allottees) and the corporate debtor

…

**Interpretation:** Section 7 of the IBC provides the mechanism for financial creditors to initiate

…

**Application:** The NCLT applied these principles to the facts, finding that the applicants,

…

## Parties

- **Judges:** JYOTI KUMAR…; RAVICHANDRAN…
- **Appellants:** V.RAJALA…
- **Respondents:** LOKAA DEVELOPERS…; M/S LOKAA…

## Timeline

- **2011-09-02 — Incorporation of…**: Lokaa Developers Private…
- **2016-07-01 — Disbursement…**: Applicants disbursed funds to the Corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 3(12) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-3)

---

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/lokaa-developers-private-limited-e38f28eb