103 N.J. Eq. 119 | N.J. Ct. of Ch. | 1928
On December 27th, 1927, Campbell Duncan, a corporation of this state, was by this court adjudged insolvent, and a receiver was on that day appointed pursuant to the provisions of our Corporation act. On that date the insolvent corporation had money on deposit with the North Camden Trust Company and also was indebted to that trust company on a trade acceptance not then due.
The single question for determination herein is whether the trust company was privileged to set-off its claim, which was not then matured, against the debt which was due and payable to the insolvent corporation at the time of the receiver's appointment.
The great diversity of views on this subject will be found by reference to an extended note in 43 Am. L. Rep. 1325; but in this court the question can scarcely be considered an open one.
In McManus-Kelly Co., v. Pope Manufacturing Co.,70 Atl. Rep. 297, Vice-Chancellor Howell adopted the view that since the statutory right of set-off in actions at law did not embrace debts not due, no greater right could exist in the administration of the estate of an insolvent corporation unless special circumstances existed from which an equitable right could be said to arise, such as a deposit which was a part of the proceeds of an unmatured discounted note held by the bank, or other purely equitable right.
But in the subsequent case of Shields v. John ShieldsConstruction Co.,
The views adopted in Shields v. John Shields ConstructionCo., supra, which appear to be unassailable, must be regarded as controlling, and the right of the trust company to offset its unmatured claim must be recognized.