Operational creditors may claim contractual set-off in CIRP claims under Regulation 7 read with Form B clarification

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....NCLAT held that, under Regulation 7 read with Form B of the CIRP Regulations and in light of the SC's recognition of contractual/equitable set-off, an operational creditor may claim set-off of mutual dues while filing its claim in CIRP. In the present case, undisputed mutual liabilities existed between the Appellant and the CD under their agreements. The RP erred in refusing to allow set-off and in not restricting the Appellant's admitted claim to the net amount after adjusting Rs. 5,56,59,526 payable by the Appellant. NCLAT held that the Appellant's claim should stand at Rs. 3,40,46,082 on a net basis, but clarified that this adjustment does not affect the approved resolution plan, its implementation, or payouts to any stakeholder. The approval of the resolution plan is maintained and the appeal is disposed of with the above modification.....