In Brief
Home buyers of a stalled eight-year-old residential project initiated CIRP proceedings against the developer. After the NCLAT upheld admission of the insolvency petition, both the original applicants (home buyers) and 79 other home buyers settled their dispute with the developer, agreeing to project completion within one year. The Supreme Court allowed withdrawal of CIRP proceedings, exercising extraordinary powers under Article 142 of the Constitution. The Court held that this was in the larger interest of 82 home buyers who would receive possession after waiting eight years, and that withdrawal was permissible under Rule 11 of the NCLT Rules despite the procedural requirement of 90% COC approval under Section 12A.
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