https://www.taxtmi.com/caselaws?id=104434 Winding up does not extinguish mutual dealings between a company in liquidation and its bank. Where the company is a creditor on fixed deposit receipts and related credit balances, and at the same time a debtor on an overdraft account, section 46 of the Provincial Insolvency Act, 1920, read with section 529 of the Companies Act, 1956, requires mutual accounts to be taken and only the balance to be claimed or paid. A void pledge under section 536(2) does not affect the underlying debts, and the bank's general lien claim under section 171 of the Contract Act yields to the special company-law set-off regime. The relevant date for balancing accounts is the winding-up order date; later limitation objections do not defeat the statutory set-off. en-us Wed, 02 Dec 1998 00:00:00 +0530 Mon, 12 Mar 2018 16:43:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=104434 Winding up does not extinguish mutual dealings between a company in liquidation and its bank. Where the company is a creditor on fixed deposit receipts and related credit balances, and at the same time a debtor on an overdraft account, section 46 of the Provincial Insolvency Act, 1920, read with section 529 of the Companies Act, 1956, requires mutual accounts to be taken and only the balance to be claimed or paid. A void pledge under section 536(2) does not affect the underlying debts, and the bank's general lien claim under section 171 of the Contract Act yields to the special company-law set-off regime. The relevant date for balancing accounts is the winding-up order date; later limitation objections do not defeat the statutory set-off. Case-Laws Companies Law Wed, 02 Dec 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=104434