Authority: National Company Law Appellate Tribunal, Chennai Bench (Justice N. Seshasayee - Member (Judicial) and Jatindranath Swain - Member (Technical))
Order Date: 22 July 2026
Case Overview
The appeal has been filed by Mr. Ramakrishnan Sadasivan, the Resolution Professional (RP) of Connect Wind (India) Pvt. Ltd. (Corporate Debtor), challenging the order dated 27 June 2025 passed by the Learned Adjudicating Authority (NCLT) in IA (IBC)/1705(CHE)/2024 in CP (IB)/209(CHE)/2023. The respondent is MRF Ltd., an operational creditor of the corporate debtor.
The dispute centers around MRF Ltd., as an operational creditor, having preferred a claim against the corporate debtor after setting off approximately Rs. 9 crores that MRF itself owed to Connect Wind (India) Pvt. Ltd. The Resolution Professional had filed an application (IA (IBC)/1705(CHE)/2024) seeking a direction from the NCLT to compel MRF Ltd. to pay the withheld Rs. 9 crores into the corporate debtor's account. The RP's core legal contention is that once the moratorium under the Insolvency and Bankruptcy Code (IBC) is in effect, any amount due and payable to the corporate debtor cannot be unilaterally set off by a creditor and must form part of the corporate assets available for the resolution process.
While the Adjudicating Authority (NCLT) reportedly concurred with the RP's legal principle regarding the impermissibility of set-off during moratorium, it ultimately refused to grant the relief sought. The NCLT treated the RP's application as a recovery proceeding, which appears to be the basis for denying the directive for payment.
Final Outcome
The NCLAT has not issued a final ruling on the merits of the appeal. The order dated 22.07.2026 is procedural, adjourning the hearing. Arguments from the Appellant (RP) were heard on this date. The tribunal has listed the appeal for the next day, 23 July 2026, to hear the continuation of arguments from the Respondent (MRF Ltd.). The final outcome of the appeal remains pending.
Topics: Insolvency, Moratorium, Set-off