Section 34, The Bankruptcy Act, 2009

Where there have been mutual credits, mutual debts orother mutual dealings, between a debtor against whom a receiving order shall be made under this Act and any other person proving or claiming to prove a debt under the receiving order- (a) an account shall be taken of what is due from one party to the other in respect of the mutual dealings, and the sum due from the other party shall be set off against any sum due from the other party; and (b) 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 debtor in any case where he had, at the time of giving credit to the debtor, notice of any act of bankruptcy committed by the debtor and available against him.