National Westminster Bank Ltd v Halesowen Presswork and Assemblies Ltd: HL 1972

The bank’s common law right of set-off was affirmed. The bank’s appeal succeeded.
The application of section 323 is mandatory in the sense that it cannot be excluded by prior agreement of the parties.


[1972] AC 785


Insolvency Act 1986 323(2)


England and Wales


Appeal fromHalesowen Presswork and Assemblies Ltd v Westminster Bank Ltd CA 1971
The relationship of banker and customer was a single relationship the situation was not one of lien. Buckley LJ said: ‘Nor is it a set-off situation, which postulates mutual but independent obligations between the two parties. It is an accounting . .

Cited by:

FollowedRe K (Restraint Order) 1990
An order under the Act prohibited K from disposing of his assets, including a deposit account with the bank. K had an overdraft facility secured against the deposit account. The bank sought to set off the overdraft against the sums held on deposit. . .
Lists of cited by and citing cases may be incomplete.

Banking, Insolvency

Updated: 02 May 2022; Ref: scu.416228