Clean Slate Doctrine under IBC

The Supreme Court in Ujaas Energy Ltd. v. WBPDCL settles a critical intersection between insolvency finality and arbitral justice. 

While reaffirming that all claims not part of an approved resolution plan stand extinguished, the Court carves out a narrow but powerful exception, permitting set-off as a defence. 

The judgment ensures that while the “clean slate” principle remains intact, it does not operate as an instrument of inequity by forcing a party to pay without accounting for reciprocal dues. 

This is a calibrated balance between commercial certainty and adjudicatory fairness.