Set-off

The main matter that was discussed in this meeting was the setting off of claims in different circumstances by different parties. The committee agreed that the setting -off of mutual claims is acceptable where there were no complications.

The committee then addressed the question of whether knowledge of insolvency should be a bar to set-off, and the issues arising in set-offs involving two government departments. The committee then dealt in depth of the question of a set-off of an unsecured claim by a creditor that had both unsecured and preferential claims.

Upper-Slide Shipbuilder’s Decision

The point at issue here was the re-engagement of employees under different terms after ending  their employment. The court said in the judgement that so far as the Redundancy Payments Act is concerned, a liquidator acts on behalf of the company when dismissing and re-engaging employees. The committee thought that all that was intended was to bring the intention of employees as claiming as an unsecured creditor to be brought into the legislation.

Meeting28 - 12th March 1979