I checked through commandline that I had JDK 7 and on the path, so it was puzzling why Eclipse is behaving strangely. I was in no mood to install another JDK, that too one with out of End of Life support. So a quick googling I came across an easier solution that I am sharing here for everyone's benefit.
- Open folder /Library/Java/JavaVirtualMachines/jdk.1.7.x/Contents/
- Open Info.plist
- Replace line
- Log out or Restart your machine