IBC ‘Clean Slate’ Not Absolute, Set-Off Defence Allowed in Arbitration but Counterclaim Relief Barred: Supreme Court
The Supreme Court delivered an important judgment explaining the scope of the clean slate principle under the Insolvency and Bankruptcy Code Section 31. The Court held that once a resolution plan is approved, all claims not included in it are extinguished, but a limited right of set-off can still be used as a defence in arbitration. The case was decided in Ujaas Energy Ltd. versus West Bengal Power Development Corporation…
