Case Law Analysis
|Supreme Court of India
IBC Section 14 | Set-off Permitted as Defensive Offset in Arbitration, Not Affirmative Claim, After Resolution Plan Approval : SC
The Supreme Court has ruled that while claims not included in an IBC resolution plan are extinguished, a respondent may still use set-off as a defensive countermeasure in arbitration to reduce the appellant’s claim-provided no independent relief is sought. This preserves contractual fairness without undermining the finality of resolution plans, impacting creditors, corporate debtors, and arbitration practitioners alike.