An application was filed by 170 home allottees (Financial Creditors) against Gayatri Hospitality and Realcon Limited (Corporate Debtor) under Section 7 of the IBC for initiating CIRP due to the Corporate Debtor's failure to deliver possession of units in the "Gayatri Aura" project. The total amount in default was over Rs. 19 crores. An earlier Section 7 petition was set aside by NCLAT due to procedural non-compliance with the threshold requirement, a decision upheld by the Supreme Court. The Corporate Debtor argued that the current application was not maintainable, that no default occurred due to force majeure events (land encroachment, "Zero Period" by GNIDA, COVID-19), and that many applicants did not qualify as genuine financial creditors, thus

An application was filed by 170 home allottees (Financial Creditors) against Gayatri Hospitality and Realcon Limited (Corporate Debtor) under Section 7 of the IBC for initiating CIRP due to the Corporate Debtor's failure to deliver possession of units in the "Gayatri Aura" project. The total amount in default was over Rs. 19 crores. An earlier Section 7 petition was set aside by NCLAT due to procedural non-compliance with the threshold requirement, a decision upheld by the Supreme Court. The Corporate Debtor argued that the current application was not maintainable, that no default occurred due to force majeure events (land encroachment, "Zero Period" by GNIDA, COVID-19), and that many applicants did not qualify as genuine financial creditors, thus