13 Mutuality – Same Right

13.01 In the case of insolvency set-off, the requirement that the demands be held in the same right means that each of the parties, who is liable to the other, should be the beneficial owner of a cross-demand against the other.1 It should be compared to the Statutes of Set-off, which contemplate mutuality by reference to the legal title to the debts. Equity, on the other hand, may allow a set-off by analogy with the Statutes if there is mutuality in equity but not at law, or alternatively it may refuse to allow a set-off if there is mutuality at law but not in...