BHARTI AIRTEL LIMITED AND ANOTHER VERSUS VIJAYKUMAR V. IYER AND OTHERS, CIVIL APPEAL NOS. 3088-3089 OF 2020
4. Set-off is given legal preference for three reasons. First, in economic terms, set-off is a form of security recognised in law. It is, however, not a security in a strict sense, but a right that enhances provision of credit and acts as a stimulus to trade and commerce by giving a degree of confidence to parties dealing with each other. Secondly, it helps reduce litigation, promotes economy of time and is an efficient method in resolving debt between parties. Thirdly, natural equity requires that cross-demands should compensate each other by deducting the lesser sum from the greater
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