Factoring Regulation Act, 2011
16. Defences and right of set off of debtor.-
In a claim by the assignee against the debtor for payment of the assigned receivable, the debtor may raise against the assignee,
a. all defences and right of set off arising from the original contract, entered into between the assignor and debtor or any other contract that was part of the same transaction, of which the debtor could avail himself as if the assignment had not been made and such claim were made by the assignor instead of assignee:
Provided that the assignee shall, unless otherwise agreed between the parties, be entitled to recover from the assignor, any loss suffered by it as a result of any such defences and right of set off being exercised by the debtor;
b. any other right of set off if it was available to the debtor at the time notice, under section 8, of the assignment was received by the debtor.