Liquidation Process Regulation 29 provides for mutual credits and setoff – Paschimanchal Vidyut Vitran Nigam Ltd. Vs. Sandeep Goyal Liquidator for Chaudhary Ingots Pvt. Ltd. – NCLAT New Delhi
Hon’ble NCLAT partly allowed the appeal against the order NCLT Allahabad Bench wherein the Hon’ble NCLT held that Security Deposit is part of Liquidation Estate in accordance with Section 36 of IBC and it will be distributed as per the provisions outlined in Section 53 and it cannot be adjusted against dues/arrears of electricity in claim.