The Appellate Tribunal addressed the issue of refund and ...

Claim adjustment allowed, security amount set-off permitted, CIRP regulation applied.

Case Laws     IBC

November 13, 2024

The Appellate Tribunal addressed the issue of refund and adjustment of security amount in a claim. It examined Clause 8 of the Claim Form and found that the security amount was already adjusted in the claim itself. The Adjudicating Authority had relied on a Supreme Court judgment concerning the Corporate Insolvency Resolution Process (CIRP), which permitted set-off of accounts under Regulation 29. However, the Appellate Tribunal held that the Adjudicating Authority erred in observing that the anticipated claim adjustment by the Appellant could not be permitted, as the present case involved an actual claim filed with adjustment of the security claim. Consequently, the Appellate Tribunal ruled that the Adjudicating Authority's direction to pay Rs. 1,15,33,600/- could not be sustained, and the Appeal was partly allowed.

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