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The National Company Law Appellate Tribunal, Principal Bench, New Delhi (“NCLAT”) through its judgment dated 03.07.2026 in the matter of M/s Assam Power Distribution Company Limited vs. Mrs. Meena Sureka1. held that the benefit of set-off under Regulation 29 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 (“Liquidation Regulations”) is only available, if the same parties have invoked the Liquidation Regulations and cannot be applied in case of third-party entities.
The NCLAT held that the corporate debtor is a separate juristic person and is distinct from other group entities of its group company and each group company has undergone separate corporate insolvency resolution process and later on liquidation proceedings.
The NCLAT held that group companies cannot be tagged along with the corporate debtor, as the liquidation proceedings of each group company was undertaken as a separate entity.
Footnote
1. Company Appeal (AT) (Insolvency) No. 1205 of 2025.
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