Supreme Court Clarifies Set‑Off Rights After Resolution Plan Approval The Supreme Court ruled that while claims omitted from an approved IBC resolution plan are extinguished, a debtor can still raise a limited plea of set‑off in arbitral proceedings, provided no affirmative recovery is claimed. Key Developments Bench of Justice Dipankar Datta and Justice Augustine George Masih partially allowed the appeal of Ujaas Energy Ltd. against West Bengal Power Development Corporation Ltd. . The Court distinguished between pursuing a claim and using it defensively; it permitted set‑off as a defence but barred any independent counter‑claim. If the arbitration is withdrawn, the defensive set‑off claim also collapses. The judgment is limited to the specific terms of the resolution plan and does not overrule earlier rulings on set‑off during the CIRP . Important Facts The dispute originated from a 2017 contract for installing grid‑connected rooftop solar plants in West Bengal. Ujaas Energy , an MSME, entered the CIRP in September 2020 . During arbitration, the respondent PSU raised a counter‑claim that was never presented to the Resolution Professional before the plan’s approval. The NCLT approved the resolution plan in October 2023 . Section 31(1) was invoked by the appellant, arguing that all non‑plan claims were dead. The arbitral tribunal initially acce