NATIONAL WESTMINSTER BANK LTD. v. HALESOWEN PRESSWORK & ASSEMBLIES LTD.

[1972] 1 Lloyd's Rep. 101

HOUSE OF LORDS

Before Viscount Dilhorne, Lord Simon of Glaisdale, Lord Cross of Chelsea and Lord Kilbrandon

Banking-Set-off or combination of accounts- Customer (company) indebted to bank on loan account-Right of bank to set off against or combine with credit in current account- Agreement between bank and customer to keep accounts separate in absence of "material change of circumstances"-Whether notice of meeting of creditors a "material change"- Whether agreement only terminable by reasonable notice before customer wound up -Applicability of Bankruptcy Act, 1914, sect. 31; as applied by Companies Act, 1948, sect. 317-Whether "dealings" between bank and customer were "mutual"-Whether possible to contract out of provisions of sect. 31. Bankruptcy - Set-off - Customer's (company's) loan and current accounts with bank-Whether dealings "mutual" - Whether possible to contract out of rights under Bankruptcy Act, 1914, sect. 31; as applied by Companies Act, 1948, sect. 317.