[extract] It is well understood that the law which relates to the set-off of mutual dealings in bankruptcy, which has a long history, exists to prevent the injustice of a man who has had mutual dealings with a bankrupt from having to pay in full what he owes in respect of such dealings while only receiving a dividend on what the bankrupt owed him in respect of them: see Ex parte Barnett; Re Deveze (1874) 9 Ch App 293 at 297.
The purpose, construction and ambit of this right of set-off was recently considered by the full bench of the High Court in Gye and Perkes v Mclntyre.
"Gye & Perkes v McIntyre,"
Bond Law Review:
1, Article 7.
Available at: http://epublications.bond.edu.au/blr/vol3/iss1/7