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Under the second proviso to section 7(1) of the Insolvency and Bankruptcy Code, 2016, an application…

The second proviso to section 7(1), inserted in 2020, requires allottees under a real estate project to apply jointly, and fixes the minimum as one hundred allottees of that…

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Under the second proviso to section 7(1) of the Insolvency and Bankruptcy Code, 2016, an application against a corporate debtor by financial creditors who are allottees under a real estate project must be filed jointly by:

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Correct answer A

The second proviso to section 7(1), inserted in 2020, requires allottees under a real estate project to apply jointly, and fixes the minimum as one hundred allottees of that project or ten per cent of its allottees, "whichever is less". The count is made project-wise, not across all of the developer's projects. The first proviso lays down a similar rule for classes of creditors represented by an authorised representative, such as deposit or bond holders.

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