NCLAT rejects Cross entity set off in liquidation

The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, dismissed an appeal seeking adjustment of dues payable to a corporate debtor against outstanding claims recoverable from other companies belonging to the same corporate group.

The Tribunal held that each company undergoing CIRP or liquidation retains its separate legal identity and that Regulation 29 permits set-off only where mutual dealings exist between the same parties.