https://www.taxtmi.com/caselaws?id=99168 In winding-up proceedings, a creditor or debtor may set off mutual monetary claims against the company where the demands arise from reciprocal dealings, including separate chit fund accounts or fixed deposits. Section 529 of the Companies Act, 1956 imports the insolvency rule on mutual dealings and set-off, so pre-existing ordinary-law rights of adjustment are preserved. Section 530 does not bar such set-off because only the net balance remains payable after adjustment. The operative principle is that cross-demands between the company and the creditor may be mutually extinguished to the extent of the overlap, leaving only the balance provable or payable. en-us Fri, 21 Mar 1975 00:00:00 +0530 Wed, 25 Jan 2012 13:42:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=99168 In winding-up proceedings, a creditor or debtor may set off mutual monetary claims against the company where the demands arise from reciprocal dealings, including separate chit fund accounts or fixed deposits. Section 529 of the Companies Act, 1956 imports the insolvency rule on mutual dealings and set-off, so pre-existing ordinary-law rights of adjustment are preserved. Section 530 does not bar such set-off because only the net balance remains payable after adjustment. The operative principle is that cross-demands between the company and the creditor may be mutually extinguished to the extent of the overlap, leaving only the balance provable or payable. Case-Laws Companies Law Fri, 21 Mar 1975 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=99168