The decree-holder does not change its original character of being a Real Estate Allottee and A single allottee cannot trigger the insolvency as does not meet the threshold requirement as per second proviso to Section 7(1) of the Code – Dheeraj Raikhy Vs. Raheja Developers Ltd. – NCLAT New Delhi
In this case, NCLT relying on the judgment of NCLAT in Sushil Ansal vs. Ashok Tripathi & Ors. [2020] ibclaw.in 43 NCLAT held that the decree-holder does not change its original character of being a Real Estate Allottee and this being a case of a single allotment, does not meet the threshold requirement as per second proviso to Section 7(1) of the Code.
NCLAT referred the judgment in Vishal Chelani & Ors. Vs. Debashis Nanda (2023) ibclaw.in 117 SC and held that it is now well settled that the status of the party i.e. allottee does not change and therefore the Adjudicating Authority has rightly concluded that threshold being not met one allottee cannot trigger the insolvency.