Section 229(b) in Jammu and Kashmir Contract Act, Svt. 1977 (1920 A.D.)
(b)A is employed by B to buy from C goods of which C is the apparent owner. A was, before he was so employed, a servant of C, and then learnt that the goods really belonged to D, but B is ignorant of that fact. In spite of the knowledge of his agent, B may set-off against the price of the.goods a debt owing to him from C.