The Supreme Court has held that while claims not included in an approved resolution plan under the Insolvency and Bankruptcy Code, 2016 stand extinguished, a limited plea of set-off can still be raised as a defence in arbitral proceedings, provided it does not result in any affirmative recovery.
A bench of Justice Dipankar Datta and Justice Augustine George Masih partly allowed an appeal filed by Ujaas Energy Ltd. against West Bengal Power Development Corporation Ltd., modifying the Calcutta High Court Division Bench’s order which had directed continuation of arbitral proceedings without excluding the counterclaim.
The dispute arose from a 2017 contract for installation of grid-connected rooftop solar power plants in West Bengal. Ujaas…