Case Law Analysis
|National Company Law Appellate Tribunal
Regulation 29, IBBI Liquidation Regulations | Set-off Permitted Only Between Corporate Debtor and Creditor, Not Across Group Entities : NCLAT
The NCLAT has clarified that Regulation 29 of the IBBI Liquidation Regulations does not permit set-off claims between a corporate debtor and a creditor through affiliated group entities, upholding the doctrine of corporate separateness. This ruling directly impacts how operational creditors and liquidators assess mutual obligations in insolvency proceedings, preventing cross-entity netting that could distort the waterfall of claims under the IBC.