Set-Off Of Transactions Executed Prior To Commencement Of CIRP Based On Arbitral Award Is Permissible During CIRP: NCLT New Delhi

The NCLT, New Delhi, has ruled that a "set-off of transactions executed prior to the commencement of CIRP based on an arbitral award is permissible during CIRP." The tribunal's decision clarifies a contentious issue and provides much-needed relief to creditors. The ruling ensures that a creditor's legitimate claim, even if it arose before the insolvency process, can be adjusted against a debt owed to the corporate debtor. This judgment is a significant development in insolvency law.