SET-OFF UNDER SEPARATE CONTRACTS: ARBITRATION CLAUSES AND UNLIQUIDATED CLAIMS: HANAK v GREEN GOOD LAW

Bim Kemi v Blackburn Chemicals Ltd ((2001) unreported, 3 April, CA)

1. In order for a counter-claim based on contract to be set-off in equity against a primary claim in contract, it is not necessary for the two claims to spring from the same contract. It is enough to show that the counterclaim flows out of and is closely and inseparably connected with the dealings and transactions which have given rise to the subject of the primary claim.