Hong Kong Ordinances

BANKRUPTCY ORDINANCE - SECT 35

Mutual credit and set-off

(Past version on 30/06/1997).

Where there have been mutual credits, mutual debts or other mutual dealings
between a bankrupt against whom a bankruptcy order is made under this
Ordinance and any other person proving or claiming to prove a debt under the
bankruptcy 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 the
balance of the account, and no more, shall be claimed or paid on either side
respectively; but a person shall not be entitled under this section to claim
the benefit of any set-off against the property of a bankrupt in any case
where he had, at the time of giving credit to the bankrupt, notice that the
petition had been presented. (Amended 33 of 1939; G.N. 840 of 1940 Supp.
Schedule; 76 of 1996 ss. 26, 72 and 73) [cf. 1914 c. 59 s. 31 U.K.]