Supreme Court’s verdict on set-off inapplicable to Corporate Insolvency Resolution Process.

In the case of Bharti Airtel Limited v. Vijaykumar V. Iyer [Civil Appeal No. S 3088-3089 of 2020], the Supreme Court of India ruled on the applicability of set-off during the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC). Bharti Airtel sought to set off funds owed to them against payments made to Aircel entities for spectrum trading agreements. However, the Court upheld the National Company Law Appellate Tribunal’s (NCLAT) decision, which denied Bharti Airtel the right to set off. The ruling emphasized that the IBC does not recognize the right to set off during CIRP, aiming instead to rehabilitate corporate debtors without depleting their assets through individual creditor actions like set-offs. The Court underscored the importance of maintaining the integrity of the insolvency resolution process and ensuring fair treatment for all creditors involved. This decision sets a precedent for future insolvency cases, clarifying the stance on set-off claims) Swithin the framework of the IBC and reaffirming the priority of the resolution process in preserving the interests of all stakeholders