In a landmark judgment, the Supreme Court has provided comprehensive clarity on the application of set-offs within the framework of the Insolvency and Bankruptcy Code (IBC), particularly during the Corporate Insolvency Resolution Process (CIRP). The recent ruling in the case of Bharti Airtel Ltd and Anr. v Vijaykumar V. Iyer addresses a frequently contested issue, offering a detailed analysis of different types of set-offs and their implications.
Understanding set-offs: Types and principles
Set-offs allow a debtor to reduce a larger debt by offsetting a smaller claim owed to them by the creditor. This principle is valued for its economic security, efficiency in debt resolution, and adherence to natural equity, ensuring that cross-demands…
Read the full article at: https://timesofindia.indiatimes.com/blogs/lawtics/landmark-supreme-court-ruling-clarifies-set-offs-under-the-insolvency-and-bankruptcy-code-ibc/