The National Company Law Appellate Tribunal (NCLAT), New Delhi, has held that the benefit of set-off under the IBBI (Liquidation Process) Regulations, 2016 is available only where the mutual dealings are between the same parties and cannot be invoked to adjust dues owed by other group companies.
The bench of Judicial Member Justice R.N. Seshasayee, Technical Member Arun Baroka, and Technical Member Indevar Pandey observed:
“We observe that per Regulation 29 of the IBBI (Liquidation Process) Regulations, 2016, if the Corporate Debtor and another party owe money to each other, then the amounts should be adjusted against each other. After setting- off what each side owes, only the final balance amount either payable to the Corporate…