https://www.taxtmi.com/caselaws?id=99843 In winding-up proceedings, mutual dealings between a company in liquidation and a creditor are subject to set-off under the insolvency rules incorporated by section 529 of the Companies Act, 1956. That incorporation brings in section 46 of the Provincial Insolvency Act, 1920, requiring the mutual account to be taken and only the balance to be proved or recovered. The preferential payment scheme under section 530 does not displace this position in relation to mutual dealings, and both provisions must be read harmoniously. The creditor was therefore entitled to set off the reciprocal amounts, and the section 530 objection failed. en-us Fri, 12 Dec 1980 00:00:00 +0530 Mon, 20 Nov 2017 12:42:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=99843 In winding-up proceedings, mutual dealings between a company in liquidation and a creditor are subject to set-off under the insolvency rules incorporated by section 529 of the Companies Act, 1956. That incorporation brings in section 46 of the Provincial Insolvency Act, 1920, requiring the mutual account to be taken and only the balance to be proved or recovered. The preferential payment scheme under section 530 does not displace this position in relation to mutual dealings, and both provisions must be read harmoniously. The creditor was therefore entitled to set off the reciprocal amounts, and the section 530 objection failed. Case-Laws Companies Law Fri, 12 Dec 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=99843