- Where there are mutual dealings between the corporate person and another party, the sums due from one party shall be set-off against the sums due from the other to arrive at the net amount payable to the corporate person or to the other party.

Illustration. - X owes Rs.100 to the corporate person. The corporate person owes Rs.70 to X. After set-off, Rs.30 is payable by X to the corporate person.