IBC – Section 26(2)(a) – Right to claim set-off in CIRP and consideration by RP while taking custody and control of all assets of Corporate Debtor.

Judgment dated 3.1.2024 in Civil Appeal Nos.3088-2089 of 2020 of Bharti Airtel Limited and another  Vs. Vijaykumar V. Iyer and others.

IBC – Section 26(2)(a) – Right to claim set-off in CIRP and consideration by RP while taking custody and control of all assets of Corporate Debtor.

By the orders dated 12.3.2018 and 19.3.2018, the NCLT Mumbai had admitted the petitions and CIRP was initiated against the Aircel Entities.

The total claim of Airtel entities was for Rs.203.46 crores including Rs.64.11 crores owed by Airtel entities to the Aircel entities for interconnect charges.

The Resolution Process admitted the claim of Airtel entities to the extent of Rs.112 crores.

By the letter dated 12.1.2019, the RP asked the Airtel to pay Rs.112.87 crores to Aircel since this amount was suo motu adjusted from the amount payable by Airtel to Aircel.

This is how the Airtel claimed the right to claim set-off of the amount due to them by Aircel from the amount payable by it to Aircel.

RP had rejected the claim for set-off.  However, the Adjudicating Authority had allowed the claim for set-off vide order dated 1.5.2019.   This order was set-aside by the NCLAT.   This was confirmed by the Supreme Court.