While LUA is a nice language for embedded development but i would extremely vote against LUA for web development.
The reason is that in Games you simply don't have an external API. All is done with your own objects only some calls into your game engine.
But the web world is so full of stuff you need, like SMTP, POP3, IMAP, SSL, Amazon APIs, Google APIs, RSS Apis, Imaging etc. and while the checklist for LUA may have a check mark behind all this words - it doesn't mean anything. Most of the stuff i have seen is just a "me too| implementation but not industrial strength. They are projects by hobbyists and are published on a "Its good enough for me" basis which is total unacceptable if you ever go mission critical.
There is a reason why it takes years and a huge community to get this up. Lua has an extremely small community of web developers.
So if this is a professional project where you put your money i can only say hands off. On the other side if you have enough money i still have some snake oil here for sale, please contact me.