Singapore legislation

Clause 219

of Insolvency, Restructuring and Dissolution Bill

Clause 219

Mutual credit and set-off

(1)

This section applies to —

(a)

a company in judicial management; and

(b)

an insolvent company that is being wound up.

(2)

Where there have been any mutual credits, mutual debts or other mutual dealings between a company and any creditor, the debts and liabilities to which each party is or may become subject as a result of such mutual credits, debts or dealings must be set off against each other and only the balance is a debt provable in the judicial management or the winding up of the company, as the case may be.

(3)

There is to be excluded from any set-off under subsection (2) any debt or liability of the company which —

(a)

is not a debt provable in judicial management or winding up; or

(b)

arises by reason of an obligation incurred at a time when the creditor had notice that an interim judicial manager had been appointed under section 94(3), or that the application for a judicial management order or the application for winding up (as the case may be) relating to the company was pending.

(4)

A sum is to be regarded as being due to or from the company for the purposes of subsection (2) regardless of whether —

(a)

the sum is payable at present or in the future;

(b)

the obligation by virtue of which the sum is payable is certain or contingent; or

(c)

the sum is fixed or liquidated, or is capable of being ascertained by fixed rules or as a matter of opinion.

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