(1) If there are mutual debts between a plaintiff and a defendant in any
proceedings, the defendant may, by way of defence, set off against the
plaintiff's claim any debt that is owed by the plaintiff to the defendant and
that was due and payable at the time the defence of set-off was filed, whether
or not the mutual debts are different in nature.
(2) This section extends to
civil proceedings in which one or more of the mutual debts is owed by or to a
deceased person who is represented by a legal personal representative.
(3)
This section does not apply to the extent to which the plaintiff and defendant
have agreed that debts (whether generally or as to specific debts) may not be
set off against each other.
(4) This section does not affect any other rights
or obligations of a debtor or creditor in respect of mutual debts, whether
arising in equity or otherwise.