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TMI Blog2024 (11) TMI 552X X X X Extracts X X X X X X X X Extracts X X X X ..... ykumar V. Iyer and Others [ 2024 (1) TMI 187 - SUPREME COURT ], which was a case of the CIRP. However, the judgment which has been extracted itself indicate that set off of account on mutual dealing is permitted under Regulation 29. It is submitted that the Adjudicating Authority has erred in observing that the amount set off by PVVNL against anticipated claim cannot be permitted. The present is not a case of anticipated claim but the claim filed by the Appellant is with adjustment of security claim. The view of the Adjudicating Authority that there could not have been set off/ adjustment of the claim by the Appellant cannot be approved. The direction of the Adjudicating Authority to pay Rs.1,15,33,600/- could not be sustained. The Appeal i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... judicating Authority has rightly relied on judgment of Hon'ble Supreme Court in Bharti Airtel Ltd. and Another vs. Vijaykumar V. Iyer and Others and the said adjustment was not permissible as held by the Hon'ble Supreme Court. 4. We have considered the submissions of learned counsel for the parties and perused the record. 5. Learned counsel for the Appellant at the onset submitted that Appellant does not contend that provisions of Electricity Act shall override the IBC and the said view taken by the Adjudicating Authority is not being contested. 6. In Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016, Regulation 29 provides for mutual credits and setoff. Regulation 29 is as follows: "29. Mutual credits an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... RUT Registered Office - Executive Engineer Electricity urban Distribution Division III Pvvnl Muzaffarnagar - 251001 E-mail - [email protected] 2. ADDRESS OF OPERATIONAL CREDITOR FOR CORRESPONDENCE Executive Engineer Electricity urban Distribution Division III - 16 Tikait Vihar near Vasundhara Residency Muzaffarnagar - 251001 3. TOTAL AMOUNT OF CLAIM, INCLUDING ANY INTEREST, AS AT LIQUIDATION COMMENCEMENT DATE AND DETAILS OF NATURE OF CLAIM PRINCIPAL : 3,48,44,219 INTEREST : 55,75,075 TOTAL CLAIM : 4,04,19,294 4. DETAILS OF DOCUMENTS BY REFERENCE TO WHICH THE DEBT CAN BE SUBSTANTIATED Electricity bills and detail of Claim amount 5. DETAILS OF ANY DISPUTE AS WELL AS THE RECORD OF PENDENCY OF SUIT OR ARBITRATION PROCEEDINGS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... When we look into Clause 8 of the Claim Form, in the claim itself the security amount was adjusted i.e. said amount was set off. The Adjudicating Authority in Para 27 of the judgment has referred to judgment of Hon'ble Supreme Court in Bharti Airtel Ltd. and Another vs. Vijaykumar V. Iyer and Others, which was a case of the CIRP. However, the judgment which has been extracted in Para 27 itself indicate that set off of account on mutual dealing is permitted under Regulation 29. It is submitted that the Adjudicating Authority has erred in observing that the amount set off by PVVNL against anticipated claim cannot be permitted. The present is not a case of anticipated claim but the claim filed by the Appellant is with adjustment of security cl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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