https://www.taxtmi.com/caselaws?id=99221 In winding-up proceedings, mutual dealings between a company and its creditor permit set-off under the insolvency rules applied by section 529 of the Companies Act, 1956, read with section 46 of the Provincial Insolvency Act, 1920. Separate chit fund accounts or fixed deposits did not destroy mutuality where reciprocal monetary claims existed between the same parties, and liquidation did not extinguish the ordinary right of set-off. The priority scheme under section 530 operated only after the balance was ascertained. The respondents were therefore entitled to adjust their dues against the official liquidator's claim and were liable only for the net balance. en-us Fri, 21 Mar 1975 00:00:00 +0530 Wed, 25 Jan 2012 16:11:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=99221 In winding-up proceedings, mutual dealings between a company and its creditor permit set-off under the insolvency rules applied by section 529 of the Companies Act, 1956, read with section 46 of the Provincial Insolvency Act, 1920. Separate chit fund accounts or fixed deposits did not destroy mutuality where reciprocal monetary claims existed between the same parties, and liquidation did not extinguish the ordinary right of set-off. The priority scheme under section 530 operated only after the balance was ascertained. The respondents were therefore entitled to adjust their dues against the official liquidator's claim and were liable only for the net balance. Case-Laws Companies Law Fri, 21 Mar 1975 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=99221