Civil Procedure Code 1908 Set-off, Counter

Civil Procedure Code 1908 Set-off, Counter – Claim, Equitable Set-off

Here, we will learn a few terms of the Civil Procedure Court, 1908.

Set – Off, Counter – Claim and Equitable Set – Off :

Set – Off:

Set Off is dealt under Order 8 of Rule 6 of the Civil Procedure Code, 1908. It is a defense mechanism to a sum of money owed. It is a form of a cross – suit. Legally, it is termed as reciprocal acquittal to of debts between both the parties i.e. between the plaintiff and the defendant. It eliminates or extinguishes the claim of the plaintiff to the extent of the sum of the money claimed by the defendant as a counter claim.

In simple terms, it means when 2 parties owe money to each other but 1 among the two parties owe more money than the other than that party pays the net amount and settles the money owed.

Under Order 8 of Rule 6, where in a suit a defendant claims for the recovery of money to set off against the plaintiff’s demand any ascertained money legally recoverable by him from the plaintiff not exceeding the pecuniary limit of the Court and where both the parties fill the same character as in the plaintiff’s suit, then at the first hearing of the suit and not afterwards the defendant may present a written statement containing the particulars of the debt which is sought to be set off.

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