actually lxc-create doesn't need the cgroups, so that doesn't mean there is no problem. However, your mount output only shows that a tmpfs called cgroup is mounted under /sys/fs/cgroup. It doesn't show that actual cgroup filesystems are mounted under there. Take a look at /proc/self/mounts, and you should see something like:
@Ritesh,
actually lxc-create doesn't need the cgroups, so that doesn't mean there is no problem. However, your mount output only shows that a tmpfs called cgroup is mounted under /sys/fs/cgroup. It doesn't show that actual cgroup filesystems are mounted under there. Take a look at /proc/self/mounts, and you should see something like:
serge@ubuntu:~$ grep cgroup /proc/self/mounts mode=755 0 0 cgroup/ cpuset cgroup rw,relatime,cpuset 0 0 cgroup/ cpuacct cgroup rw,relatime,cpuacct 0 0 cgroup/ memory cgroup rw,relatime,memory 0 0 cgroup/ devices cgroup rw,relatime,devices 0 0 cgroup/ freezer cgroup rw,relatime,freezer 0 0 cgroup/ blkio cgroup rw,relatime,blkio 0 0 cgroup/ perf_event cgroup rw,relatime, perf_event 0 0
cgroup /sys/fs/cgroup tmpfs rw,relatime,
cgroup /sys/fs/
cgroup /sys/fs/cgroup/cpu cgroup rw,relatime,cpu 0 0
cgroup /sys/fs/
cgroup /sys/fs/
cgroup /sys/fs/
cgroup /sys/fs/
cgroup /sys/fs/
cgroup /sys/fs/