Setting off dues during Corporate Insolvency Resolution Process
National Company Law Appellate Tribunal, New Delhi
Vijay Kumar V Iyer, RP for Aircel Ltd. And Dishnet Wireless Ltd.
Bharti Airtel Ltd. & others
CA (AT) (Ins) No.530 & 700 of 2019 | Date: 13.07.2020
In the present case, Corporate Debtor i.e. Dishnet Wireless Ltd and Aircel Limited had undergone Corporate Insolvency Resolution Process (CIRP) under Section 10 of the I&B Code on 19.3.2018 and 12.03.2018 respectively.
Both Aircel Ltd and Dishnet Wireless Ltd, being Aircel entities had entered into Spectrum Trade Agreement with the Respondents. A total consideration of Rs. 453 crores was paid by Aircel to the Respondents. The Hon’ble Supreme Court, vide Order dated 08.01.2019 in IA No. 180450/2018 with Contempt Petition No. 271/2018, had ordered the Respondents to return the sum of money paid as consideration to Aircel.
However, on 01.05.2019, the Mumbai Bench of National Company Law Tribunal passed an order permitting the setting off of dues by Respondents while making payment of the total consideration amount of Rs. 453 Crores.
Thereafter, the Respondents breached the orders of the Hon’ble Supreme Court and paid a sum of Rs. 341 Crores only, to the Appellants, while deducting a sum of Rs. 112 Crores for set off against dues owed by Aircel to the Respondents.
ISSUE BEFORE THE APPELLATE TRIBUNAL
The following issue was considered by the Appellate Tribunal: