New South Wales Consolidated Acts New South Wales Consolidated ActsNothing in Part 2 or Part 3 of this Act or in the Moratorium Act 1930 , as
amended by subsequent Acts, shall prevent any mortgagee who is sued by a
mortgagor from pleading or setting up in any such action or suit by any plea
of set-off or cross-action or by counter-claim any claim or demand which under
the provisions of the said enactments, or any of them, he could not sue for
except with the leave of the court or any claim or demand in respect of any
covenant, agreement, or stipulation which is avoided by section twenty-five of
the said Act as so amended:
Provided that such mortgagee shall not be entitled under the provisions of
this section to recover in such action or suit any amount by which such claim
or demand is found to exceed the debt or demand proved by the plaintiff.