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2019 (6) TMI 1332 - Tri - Insolvency and BankruptcyAdmissibility of petition - “Set Off” under Insolvency Proceedings - Section 10 of IBC application - scope of Moratorium - Application is filed for a direction to the Resolution Professional (RP) to honour the legal and equitable right of 'Airtel entities' to apply set off on account of mutual dealings for an amount of approximately INR 112 Crores during the Corporate Insolvency Resolution Process - HELD THAT:- The basic principles of set-off as per prevalent accounting principles are discussed and noticed that the Hon'ble Courts have almost unanimously taken a view that in mutual dealings among the same parties it is fair and reasonable to allow for netting off or set-off of the mutual debts and credits with each other so as to arrive at a net figure for settlement of accounts. In the light of this background it is now pertinent to examine the provisions of Insolvency Code to determine whether an embargo has been imposed under The Code. If there is no restriction or prohibition in the statute, then a fair and reasonable approach is always is to be adopted. There is no specific bar or barrier in the Insolvency Code that up to CIRP process only gross amount/claims are to be taken into account and the netting is permissible only in case of start of Liquidation. In the absence of any such restriction this Bench obviously has a liberty to take an independent view which is not at variance with the provisions of The Code, rather remove the ambiguity between a gross claim or net claim, that too at what stage. This Bench is of the view that the applicant is legally entitled under the insolvency code to set off the amount of ₹ 112 Crores while making a payment of the amount retained out of the total consideration settled as per Spectrum Trading Agreement - application allowed.
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