Set-Off Of Pre-CIRP Tax Dues Is Not Permitted Against Post-CIRP Tax Refund In Absence Of Pre-Existing Contractual Provision: NCLT Mumbai

The NCLT Mumbai has ruled that "set-off of pre-CIRP tax dues is not permitted against post-CIRP tax refunds," unless a pre-existing contractual set-off is in place. The tribunal's decision clarifies a crucial point regarding the treatment of tax liabilities during the Corporate Insolvency Resolution Process. The ruling reinforces the principle that the CIRP is a distinct legal process, and tax obligations cannot be mixed with refunds without a clear legal basis.