TMI Blog2020 (8) TMI 499X X X X Extracts X X X X X X X X Extracts X X X X ..... Moratorium is in force. The Accounting Conventions cannot supersede any express provisions of the laid down provisions of the specific law on the subject. The I B Code, 2016 provides the mechanism of Moratorium during the CIRP till the Resolution Plan is approved or Liquidation order is passed. The I B Code has a provision to override other laws as enunciated above. Hence, even if there are some such provisions in any other law, the I B Code 2016 will prevail over that. The Respondent No.1 2 are directed to pay the amount whatever has been set off by them to the Aircel Entities - appeal allowed. - Company Appeal (AT) (Ins) No. 530 & 700 of 2019 - - - Dated:- 13-8-2020 - (Justice Jarat Kumar Jain) Member (Judicial) , (Mr. Balvin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 18. 3. Aircel Limited and Dishnet Wireless Limited (Aircel entities) had entered into Spectrum Trade Agreement with Respondent No.1 2 in April, 2016. 4. The Adjudicating Authority vide its order dated 01.05.2019 has allowed the set off while making payment of the amount out of total consideration of ₹ 453 crores settled as per Spectrum Trade Agreement. 5. The Resolution Professional has submitted that the Respondent were obliged to return ₹ 453 Crores retained in terms of the Hon ble Supreme Court order 08.01.2019 in IA No 180450/2018 with Contempt Petition No.271/2018. However, the Respondents in breach of the orders of Hon ble Supreme Court, paid a sum of approx.. ₹ 341 Crores approximately and thereby illegal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Respondent No.1 2 has submitted that the right of a party to apply set off is a wellknown concept in Accounting and have also submitted that such right has been recognised for more than a century in the context of Insolvency /liquidation under Companies Act, Presidency Insolvency Act, and Provincial Insolvency Act, 1920 and have also submitted that this has been done based on mutual debits and credits and mutual dealings between the parties. 8. However, the Respondent No.4 i.e. State Bank of India on behalf of Committee of Creditors has also vehemently opposed set off permitted by Adjudicating Authority. They have submitted that there is no provisions under the IBC or the CIRP Regulations that permit a set off and set off can only ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 04.2018 wherein it has been held at para 5 as follows: Para 5. Having heard learned counsel for the Appellant, we do not accept the submissions made on behalf o the Appellant in view of the fact that after admission of an application under Section 7 of the I B Code, once moratorium has been declared it is not open to any person including Financial Creditor and the Appellant bank to recover any amount from the account of the Corporate Debtor , nor it can appropriate any amount towards its own dues . 11. We have also gone through the judgment of this Appellate Tribunal in Company Appeal (AT) (Ins) No.519 of 2018 in MSTC Ltd. Vs. Adhunik Metaliks Ltd Ors. and Company Appeal (AT) (Ins) No.53 54 of 2019 Liberty House Group Pvt. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e any express provisions of the laid down provisions of the specific law on the subject. The I B Code, 2016 provides the mechanism of Moratorium during the CIRP till the Resolution Plan is approved or Liquidation order is passed. The I B Code has a provision to override other laws as enunciated above. Hence, even if there are some such provisions in any other law, the I B Code 2016 will prevail over that. 15. Accordingly, we allow the present appeal and set aside the order dated 01.05.2019 passed by NCLT, Mumbai Bench and direct the Respondent No.1 2 to pay the amount whatever has been set off by them to the Aircel Entities. 16. The Appeal is allowed with the above directions and, if any, interim orders were issued stands vacated. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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