Financial Debt Adjustment Not Allowed in Section 4 IBC Threshold Calculation

Kailash Motilal Kakrania Vs Apurva Oil and Industries Private Limited (NCLAT Delhi) NCLAT Delhi held that there is no provision under the Insolvency and Bankruptcy Code which allows set of/adjustment/ counter claim against financial debt for calculating threshold limit prescribed under section 4 of the Code. Facts- Mr. Kailash Motilal Kakrania and his wife Mrs. Manju Kailash Kakrania, collectively referred as Appellants hereinafter had filed a petition u/s. 7 of the Code on 04.09.2021 against Apurva Oil and Industries Private Limited (corporate debtor). Mr. Kailash Motilal Kakrania was a share...