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Part IV Set-Off Against Insolvent Parties, 12 Insolvency Set-Off Under English Law

From: Set-Off in Arbitration and Commercial Transactions

Pascal Pichonnaz, Louise Gullifer

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2022. All Rights Reserved.date: 16 August 2022

Subject(s):
Insolvency set-off — Cross-claims — Mutuality of claims — Close-out netting — Liquidity — Debt
12.01 In broad terms, the English law of insolvency set-off is relatively easily stated. Where a party to a claim enters insolvency proceedings, the main claim and cross-claim are automatically set-off and only the balance, if any, is claimable in the insolvency proceedings by the solvent party, or payable by the solvent party to the insolvent party. These rules apply whether the insolvent party is a company or not, and (generally) whether the claims are present or future, certain or contingent. The rules are statutory and are to be found in s 323 of the...
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