Gentle, J.

1. (Application No. 8415 of 1939): In this application the Official Liquidator seeks directions of the Court in regard to matters set out in prayers 2 and 3. Shortly the points are these: whether a debtor in respect of whose debt there is a surety is entitled to set off against the money owing by the debtor to the company moneys due to the debtor from the company and whether the surety is entitled to set off in respect of his obligation to the company moneys owing to him from the company. The origin of the transactions is a liability which, arose in connexion with a chit fund scheme conducted by the company. Every contributory to a chit fund scheme agrees that he will each month for a specified period pay to the company an agreed amount; each month an auction is held and the successful bidder, being one of the subscribers, is entitled to receive from the company the total amount of all his subscriptions to the fund upon furnishing security by means of a surety and also agreeing to continue to pay each month the amount of his monthly subscription. When a debtor is placed in a position to receive from the company the total amount of his subscriptions the company requir