The Supreme Court allowed Modern Asset, which received only 0.72% of its claim in insolvency, to raise a counterclaim for set-off in arbitration with KNK Construction. – Modern Asset v. KNK Construction Private Limited
The Supreme Court on October 8, 2026 held that Modern Asset, a creditor that received only 0.72% of its claim under an insolvency resolution plan, can raise a counterclaim in arbitration against KNK Construction Private Limited. The case arose under the Insolvency and Bankruptcy Code, 2016 (IBC), the law that governs the rescue or liquidation of companies unable to repay their debts.
The counterclaim is allowed only for set-off, meaning adjustment against any amount found payable, and not for recovering money. A Bench of Read the original article here