The Insolvency and Bankruptcy Code, 2016
IBBI (Liquidation Process) Regulations, 2016
Chapter-V Claims
Regulation 29: Mutual credits and set-off.
29. Where there are mutual dealings between the corporate debtor and another party, the sums due from one party shall be set off against the sums due from the other to arrive at the net amount payable to the corporate debtor or to the other party.
Illustration: X owes Rs. 100 to the corporate debtor. The corporate debtor owes Rs. 70 to X. After set off, Rs. 30 is payable by X to the corporate debtor.
Judicial Pronouncements:
For the meaning of set-off and types and principles of set-off and interpretation of Regulation 29, refer Bharti Airtel Ltd. and Anr. v. Vijaykumar V. Iyer and Ors. (2024) ibclaw.in 02 SC.
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