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

Set-Off:

 Set Off is dealt with in accordance with Rule 6 of Order 8 of the Code of Civil Procedure, 1908. It's a defense mechanism for the sum of money owed. It's the form of a cross, a suit. Legally, it is defined as the reciprocal acquirement of the debts between the parties, i.e. between the plaintiff and the defendant. It eliminates or extinguishes the claim of the plaintiff to the extent of the amount of money claimed by the defendant as a counterclaim.

 In simple terms, this means that if two parties owe money to each other but one of the two parties owes more money than the other party pays the net amount and settles the money owed.

 Pursuant to Rule 6 of Order 8 of the Court, where the defendant claims, in an action against the plaintiff, the recovery of money which the plaintiff has legally recovered from the plaintiff, not exceeding the pecuniary limit of the Court, and where both parties have the same character as the plaintiff's claim, the defendant may, at the first hearing of the case and not after that, pre-empt the defendant.

 Effect of Set-Off:

 Pursuant to Clause 2, the written statement shall have the same effect as the plaintiff in a cross-suit so as to enable the Court to give a final judgment on both the original and the set-off claims. The point that is noted here is that it does not affect the amount of the pleading ordered under the lien in respect of the costs to which it is subject under the decree.

 Counter-Claim:

 Counter Claim is explained in accordance with Rule 6A of Order 8 of the Code of Civil Procedure, 1908. The provision of counterclaim has been amended and the Civil Procedure Code Amendment Act, 1976 has been added to Rule 6A to 6G.

 A counterclaim is a cross-action action. It is a claim that the defendant has bought against the plaintiff. It is filed as part of the reply of the defendant to the original claim. It can be made for the amount of money that has been determined, or even for the amount of money that has not been determined. It does not need to be the result of the same transaction. In addition to his pleading, the defendant established a right or an allegation against the plaintiff's claim, either before or after the filing of the suit but under the jurisdiction of the defendant.

 Before the defendant has granted his defense or before the time limit for the delivery of his defense has expired. The point to be considered here before filing its claim is that the counterclaim to be filed must be within the pecuniary limit of jurisdiction.

 Equitable Set-Off:

 Equitable set-off is dealt with in accordance with Rule 6 of Order 8 of the Code of Civil Procedure, 1908. It can be made either for the amount of money that has been determined or even for the amount of money that has not been determined. It must arise from the same transaction, or from transactions that can be considered as one, or where there is knowledge on both sides of the existing debt due to one party and the credit of the other party. It is not a party's right, but it is at the discretion of the court, but no court fee is required for the same.

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