Section 7 Application Dismissed for Non-Compliance with IBC Amendment Thresholds and Settlement Terms Enforced

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....The NCLAT set aside the impugned order admitting the Section 7 application, holding that the petition stood withdrawn under the third Proviso to Section 7(1) as amended by the IBC (Amendment) Act, 2020. The original Section 7 application, filed by eight homebuyers prior to the amendment, was required to be modified to meet the threshold of 100 allottees or 10% of total unit holders, which was not complied with. The appellant was directed to honor its settlement proposal by allowing withdrawal of amounts deposited with interest at SBI FD rates within 60 days and reviving allotments canceled by the corporate debtor post-filing, subject to payment of the balance consideration under the Builder Buyer Agreement. The appeal was disposed of accordingly, emphasizing strict adherence to the amended provisions for Section 7 applications.....