https://www.taxtmi.com/caselaws?id=753173 The NCLAT held that the Income Tax Department's set-off of Rs. 90.42 lakh tax refund against outstanding dues during the period between CIRP expiry and liquidation order violated the moratorium under Section 14 of IBC. The tribunal ruled that moratorium continues even after CIRP timeline expires until liquidation order is passed, and creditors cannot exercise set-off during this interregnum. Citing Bharti Airtel Ltd judgment, the court emphasized set-off during CIRP violates IBC principles. The respondent was directed to refund the adjusted amount to the liquidator within two weeks and file their claim through proper liquidation process. Appeal allowed. en-us Fri, 24 May 2024 00:00:00 +0530 Mon, 27 May 2024 17:33:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=753173 The NCLAT held that the Income Tax Department's set-off of Rs. 90.42 lakh tax refund against outstanding dues during the period between CIRP expiry and liquidation order violated the moratorium under Section 14 of IBC. The tribunal ruled that moratorium continues even after CIRP timeline expires until liquidation order is passed, and creditors cannot exercise set-off during this interregnum. Citing Bharti Airtel Ltd judgment, the court emphasized set-off during CIRP violates IBC principles. The respondent was directed to refund the adjusted amount to the liquidator within two weeks and file their claim through proper liquidation process. Appeal allowed. Case-Laws Insolvency and Bankruptcy Fri, 24 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=753173