242 Mutual credit and set-off

The rule of set-off in bankruptcy embraces virtually all mutual dealings between the creditor and the bankrupt and is wider than the principles of set-off that apply under common law or in equity1. Where, before the commencement of the bankruptcy, there have been mutual credits, mutual debts or other mutual dealings between the bankrupt and any creditor of the bankrupt seeking to prove for a bankruptcy debt, an account must be taken of what is due from each party to the other in respect of mutual dealings and the sums due from one

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