Payment Made on Specific Invoice not adjustable Against Back-Dated Invoices: NCLT rejects petition filed u/s 9 of IBC

The National Company Law Tribunal (NCLT) has dismissed an insolvency petition filed under the Insolvency and Bankruptcy Code (IBC) in a case where the petitioning creditor sought to adjust payments made against specific current invoices against older, back-dated invoices for which dues were allegedly outstanding. The tribunal clarified that such a unilateral adjustment of payments would be in violation of the principles and provisions of the IBC, which requires a clear and transparent accounting of debts and payments. The NCLT's decision underscores the importance of adhering to the proper legal framework for resolving outstanding dues and prevents the misuse of the IBC for debt recovery through arbitrary adjustments.