A 'transactional set-off' is permissible under the Insolvency and Bankruptcy Code where claims and counterclaims are closely linked and connected, even during liquidation, to prevent manifest injustice, provided the set-off requirement is fully established and mutual.

IA(I.B.C)/430( MB)2026 in C.P. (IB)/571(MB)2019

1) Ld. Counsel for the Parties are present.

2) The present Interlocutory Application is filed by Shrikant Khadilkar proprietor of Mirage Ceramics (Applicant No. 1) & Devyani Khadilkar proprietor of M/s Creation (Applicant No. 2), praying for the following reliefs:

a. Declare that the Applicant No. 1 is entitled to recover Rs. 7,85,41,119/- (Rupees Seven Crore Eighty Five Lakh Forty One Thousand One Hundred and Nineteen Only) and Applicant No. 2 is entitled to recover Rs. 1,49,89,864/- (Rupees One Crore Forty Nine Lakh Eighty Nine Thousand Eight Hundred and Sixty Four Only), aggregating to Rs. 9,35,30,983/- (Rupees Nine Crore Thirty Five Lakh Thirty Thousand Nine Hundred and Eighty Three Only) from the Corporate Debtor as reflected in the Audited Financial Statements;

b. Declare that the amounts aggregating to Rs. 26,46,077/- (Rupees Twenty Six Lakh Forty Six Thousand Seventy Seven Only) payable by the Applicant No.1 to the Corporate Debtor vide order dated 10th October, 2025 passed by Hon’ble National Company Law Tribunal, Mumbai Bench-I in IA No. 935/2021 and IA No. 2103/2024 in Company Petition No. 571 (MB) of 2019 be set off against the corresponding amount of Rs. 7,85,41,119/- (Rupees Seven Crore Eighty Five Lakh Forty One Thousand One Hundred and Nineteen Only) due to the Applicant No. 1 since they are mutual dealings and hence liable to be set-off;

c. Declare that the amount of Rs. 93,000/- (Rupees Ninety Three Thousand Only) payable by the Applicant No.2 to the Corporate Debtor vide order dated 10th October, 2025 passed by Hon’ble National Company Law Tribunal, Mumbai Bench-I in IA No. 935/2021 and IA No. 2103/2024 in Company Petition No. 571 (MB) of 2019 be set-off against the corresponding amount of Rs. 1,49,89,864/- (Rupees One Crore Forty Nine Lakh Eighty Nine Thousand Eight Hundred and Sixty Four Only) due to the Applicant No. 2 since they are mutual dealings and hence liable to be set-off;

d. Direct the Respondent to set-off mutual dealings between the Applicants and the Corporate Debtor as specified in prayer clause (b) and (c) above;

e. Pending the final disposal of this interlocutory application this Hon’ble Tribunal be pleased to stay the enforcement and recovery of amounts payable by the Applicants to the Corporate Debtor as specified in the order dated 10th October, 2025 passed by Hon’ble National Company Law Tribunal, Mumbai Bench-I in IA No. 935/2021 and IA No. 2103/2024 in Company Petition No. 571 (MB) of 2019 aggregating to Rs. 27,39,077/- (Rupees Twenty Seven Lakh Thirty Nine Thousand and Seventy Seven Only);

3) Vide Order dated 10.10.2025, passed by this Tribunal in IA No. 935 of 2021 and IA No. 2103 of 2024 in the captioned Petition, M/s Mirage Ceramics, the proprietary firm of Applicant No. 1, was directed to pay a sum of Rs. 26,46,077/- and M/s Creation, the proprietary firm of Applicant No. 2, was directed to pay a sum of Rs. 93,000/- in terms of Section 43 & 45 of IBC. The Corporate Debtor owes certain amounts to the Applicants, accordingly, the Applicants by way of the present Application are seeking directions to the Resolution Professional (now Liquidator) to set-off amounts directed to be paid by this Adjudicating Authority against the monies owed to them by the Corporate Debtor as reflected in the Audited Financial Statement.

4) The Respondent herein was appointed as the Liquidator of the Corporate Debtor vide order of this Adjudicating Authority dt. 15.06.2023, passed in IA 1487 of 2021.

5) It is submitted that the directions issued in the Order of this Adjudicating Authority, require the Applicants to make payment of