Section 37: Mutual credit and set-off
consolidated text (as at 2000). juris shows the text as it was consolidated; it does not confirm that this is the law in force today.
37. Mutual credit and set-off
(1) Where there have been mutual credits, mutual debts, or other mutual
dealings between a debtor against whom a receiving order is made under this
Act, and any other person proving or claiming to prove a debt under such receiving order, an account shall be taken of what is due from the one party to
the other in respect of such mutual dealings, and the sum due from the one
party shall be set off against any sum due from the other party, and only the
balance of the account, shall be claimed or paid on either side respectively.
(2) A person shall not be entitled under this section to claim the benefit
of any set off against the property of a debtor in any case where he had at
the time of giving credit to the debtor, notice of an act of bankruptcy committed by the debtor and available against him.