https://www.taxtmi.com/caselaws?id=98016 The statutory rule of set-off in insolvency applied to mutual dealings between the depositor and the bank in liquidation, so the fixed deposit and the promissory note liability had to be brought into one account. Handing over the deposit receipt with discharge and instruction letters created only security and did not extinguish the depositor's underlying claim. That security did not prevent set-off, because the statute permits only the balance to be claimed or paid. The fact that the fixed deposit had not matured when winding up commenced was immaterial, since an unmatured debt may still be taken into account and insolvency accelerates the mutual account. The set-off claim was therefore valid and admitted. en-us Tue, 09 Jul 1963 00:00:00 +0530 Wed, 18 Jan 2012 17:49:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=98016 The statutory rule of set-off in insolvency applied to mutual dealings between the depositor and the bank in liquidation, so the fixed deposit and the promissory note liability had to be brought into one account. Handing over the deposit receipt with discharge and instruction letters created only security and did not extinguish the depositor's underlying claim. That security did not prevent set-off, because the statute permits only the balance to be claimed or paid. The fact that the fixed deposit had not matured when winding up commenced was immaterial, since an unmatured debt may still be taken into account and insolvency accelerates the mutual account. The set-off claim was therefore valid and admitted. Case-Laws Companies Law Tue, 09 Jul 1963 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=98016