APDCL Directed to Pay ₹37.66 Lakh with Interest to Liquidator of Brahmaputra Rolling Mills

NCLAT Directs APDCL to Pay ₹37.66 Lakh

The National Company Law Appellate Tribunal (NCLAT) has ruled that APDCL must pay ₹37.66 lakh along with interest to the liquidator of Brahmaputra Rolling Mills. This decision comes after NCLAT rejected APDCL's plea for set-off, reinforcing the principle that each company under the IBC is treated as a distinct legal entity.

The tribunal highlighted that Regulation 29 of the IBC applies only to mutual dealings between the same parties, thus affirming that set-off cannot be claimed unless specific conditions are met. This ruling underlines the parameters of creditor rights in insolvency proceedings and the necessity of adhering to the distinct nature of companies involved.

Legal practitioners are advised to take heed of this ruling when dealing with insolvency matters and in structuring claims, as it reinforces the need for clarity in commercial dealings and the limits of set-off provisions under the IBC.