https://www.taxtmi.com/caselaws?id=96825 A debtor cannot claim set-off in winding-up by treating as a cross-demand the amount due from an insolvent bank to a third party who provided a fixed deposit as security; the court reasoned the third party's interest in the deposit in liquidation constitutes a claim for a dividend rather than a present mutual credit, so full set-off is not available. Principles for wrongful conversion or equitable adjustment were found inapplicable to convert the third party's claim into a bilateral debt. However, equity requires any dividend payable under the fixed deposit to be applied towards the debtor's liability. en-us Fri, 03 May 1940 00:00:00 +0530 Wed, 11 Jan 2012 13:21:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=96825 A debtor cannot claim set-off in winding-up by treating as a cross-demand the amount due from an insolvent bank to a third party who provided a fixed deposit as security; the court reasoned the third party's interest in the deposit in liquidation constitutes a claim for a dividend rather than a present mutual credit, so full set-off is not available. Principles for wrongful conversion or equitable adjustment were found inapplicable to convert the third party's claim into a bilateral debt. However, equity requires any dividend payable under the fixed deposit to be applied towards the debtor's liability. Case-Laws Companies Law Fri, 03 May 1940 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=96825