https://www.taxtmi.com/caselaws?id=100106 In winding-up, a surety may claim set-off against the company in liquidation where mutual dealings exist between the parties in their respective capacities. Section 529, by importing section 46 of the Provincial Insolvency Act, permits adjustment of cross-demands if the company and the creditor have mutual dealings; the suretyship relationship does not by itself destroy mutuality where the same persons also stand as independent creditors of the company. On that basis, the respondents could set off their own chit subscription credits against their liability as sureties, and the official liquidator could recover only the net balance after such adjustment. en-us Fri, 30 Oct 1981 00:00:00 +0530 Tue, 31 Jan 2012 12:23:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=100106 In winding-up, a surety may claim set-off against the company in liquidation where mutual dealings exist between the parties in their respective capacities. Section 529, by importing section 46 of the Provincial Insolvency Act, permits adjustment of cross-demands if the company and the creditor have mutual dealings; the suretyship relationship does not by itself destroy mutuality where the same persons also stand as independent creditors of the company. On that basis, the respondents could set off their own chit subscription credits against their liability as sureties, and the official liquidator could recover only the net balance after such adjustment. Case-Laws Companies Law Fri, 30 Oct 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=100106