Companies act 2013

there is no such provision as in my view ... but still suggest u for better accounting treatment dont do these type of set off, better square off the accounts separately..

From accounting prospective it will be wrong...

either take a letter from both party if they are ready for these transaction..

because in this case Party A can send u legal notice for their payment dues...

ya you too can send legal notice to party B for their dues and so on the process will move...

your welcomes dear..... :)