It is not clear in which manner and in which proceeding the OC has waived the loan.
If the same is done in a rightful manner and on due compliance of law then the same can not be claimed in a proceeding under IBC , 2016 anymore.
Write off of debt after filing claim
Question is related to ibc,2016 . if an operational creditor writes off 50% of outstanding balance after filing claim with IRP/RP , will it affect the claim amount or realisability of money due from corporate debtor . please reply with relevant section / regulation applicable for corporate insolvency . once few advocates quoted section ( 173 of ibc ) of individual/partnership insolvency to my query of set off of mutual credit . REGARDS DILIP KAPOOR
Asked 6 years ago in Business Law
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4 Answers
PLEASE NOTE THERE IS DIFFERENCE IN WAIVER AND WRITE OFF IN BOOKS. WHERE WRITE OFF IS JUST A BOOK ENTRY FOR THE PURPOSE OF CLEANING THE ACCOUNTS AND TO ARRIVE AT TRUE AND FAIR VIEW OF BALANCE SHEET. ON ADVOCATE IS TREATING BALANCE OF OERATIONAL CREDITOR AS LOAN WHILE GIVING OPINION.
Asked 6 years ago
i had come across a judgment in which it was held that even if a loan is written off in the books, the claim still remains alive
will share when i trace it
Your claim will be intact if it's approved by the court under resolution process. Only if the same is settled the position will be different
Dear Client,
Entry to write off a bad account affects only balance sheet accounts. No effect on actual recovery. You must have already submitted evidence to amount due or must be having that you will submit.
Company decides that a specific amount is an uncollectible bad debt, it writes off the amount and reduces the accounts receivable asset which can be reverse later if recovered - Reverse the original write-off.
